adminThe distinguished entrepreneur told the delegates at the congress that one of the ways to raise money to help the distressed firms was through the church and singled out the affable Prophet Makandiwa’s United Family International Church as a possible avenue.
His concept was basically that considering the large crowds the church draws every week, members could make a contribution to a fund that would be used as capital.
Nyambirai advanced his theory on the basis that most businesses have failed to recapitalise post dollarisation because banks were not offering affordable finance good enough to rescue the ailing enterprises.
Besides helping those in distress, such a pool of funds could also come in handy for those starting out and repay the money at low interest rates.
According to Nyambirai, proceeds from such a scheme could also go towards the upkeep of the Man of God.
As I sat listening to the accomplished lawyer-turned- businessmen explaining his scheme, I sensed that something was amiss.
While in the broad sense it sounds innovative and appealing, I feel that such an idea will not effectively address the challenges that are prevailing at the moment. It is a fact that the majority of Zimbabweans have lost faith in the banking sector and thus looking at alternative ways of preserving their hard-earned dollars.
However, entrusting their money with an informal set-up like a church grouping is another ball game altogether.
It will be very unfortunate and a departure from their core business if churches are involuntarily converted into micro-finance institutions.
Some will recall that the Reserve Bank of Zimbabwe recently intervened and withdrew the licence for McDowell International ending its money-lending operation after issues of impropriety were discovered.
The organisation had its origins in a popular church where members made huge contributions and this was in turn lent out at exorbitant interest rates. They were clearly carrying out banking operations outside their mandate.
With this in mind, it is imperative that Nyambirai’s intervention should be viewed in the context that all financial matters should be properly constituted and accounted for. A clear audit trail is desirable and I doubt that the church has the capacity to manage such a fund. Let us not willfully destroy the good that the church has done for thousands of its followers simply because of a few pieces of silver.
What the economy requires right now are creative models to mobilise capital that can be lent at affordable rates good enough to retool industry and mend gaps of the lost decade. We need sustainable lines of credit to get industry back on its rails, create jobs and bring back the glory days.
Readers also expressed their views on Nyambirai’s bailout package. Here is what they said:
Peter: Prison labour should start by replacing directors, senior management and other executives as they earn 80 percent of the wage bill even though they are failing to steer business to prosperity let alone survival.
Nyambirai being a banker and businessperson why can’t he face facts in the face and advocate for such returns to depositors from banks as he foresees coming from their religious well giving.
Chenge: I am actually very shocked by your “Thinking outside the box”. Who says people in UFIC want to use “help” to look after the prophet?
Is he that poor that that you have to mention him here, or it’s your greed that you want to milk money out of the UFIC.
Changu Chongwe: Mr Nyambirai please note that people who go to church are seeking divine intervention in their troubled lives, as such expecting them to hand out money for the re-establishment of capitalistic institutions is just asking too much from them. If the church has become a source of financing oppressive market
systems then it has lost its purpose.
How is it ensured that the money collected is properly accounted for, and will be used for the purposes it is meant to be? And what are the dividends to the
worshippers? Money doesn’t come that cheap, Sir.
Tonderayi Chikanda: That’s a great point . . . think outside the box. The complexity of the factor of funding for business revitalisation and economy should not be the Government’s baby alone, but we, as citizens and residents can make use of several avenues and strategies for business financing and make ends meet.
I actually have a set of strategies that have been endorsed by some great financiers that work.
Our turnaround efforts will be meaningless if we failed to come up with creative ways to overcome the obstacles. We should continue thinking outside the box and as sure as the sun comes out tomorrow, a solution shall be found.
As always let’s make money
Online Reporter