1. Do Not Blame – the first step is to acknowledge that whatever happens in an individuals or a nations life is as a result of whatever action would have been taken by that individual or nation. Blaming does not solve any problems. One needs to take responsibility and make your problems your own. Do not wait for someone to come and solve your problems. Brainstorm and come up with solutions to Africa’s problems that do not include Handouts

2. Equip Yourself For Economic War – Education is the most lethal weapon to win the war against Economic colonization. Education gives you a skill that you can sell in exchange for remuneration. The more you know, the better you understand. It’s very important to know how money is made and managed. Financial Literacy is a must

3. Embrace Capitalism - Capitalism generally refers to an Economic System in which the means of production are all or mostly privately owned and operated for profit, and in which, investment ,distribution ,income ,production and pricing of services are determined through the operation of a market economy. This is a system that Africans should implore and habituate as this is the road to financial freedom.

4. Manufacture Products (Be a Seller, Not Just a Consumer) – the moment a nation is able to produce products and sell them, it means that there is an opportunity for income to come into that country. Consuming and importing only means there is financial outflow of cash. Money in is far better than money out. If it goes out, let it circulate within your business community.

5. Implement Spider web Doctrine - When that dollar comes into your African community, rather than going outside to spend the money to buy from other communities (importing), the Africans should spend their money buying from themselves and supporting each other’s businesses thus building the community. Charity begins at home

6. Build Wealth – create a personal means for income to be generated for generations to come (passive
Income) leave a legacy and not debt

By Wilbert Chaniwa
Founder
Nexus Business Network

Day 3
Today was an interesting day at the Mining Indaba. It was a reasonable start time-9am. What I found interesting was the subject matter tackled today. It ranged from a presentation by Portfolio Manager for US Global Investors Inc, Mr Ralph Aldis who spoke on the Infrastructure Boom and the Indaba, things are bad in the world and commodities are suffering too. The rest of the day was dominated by junior miners and explorers. This was also interesting as I learnt that most junior players are explorers who get mining concessions, research them up to feasibility phase and then try to sell them to those that will mine the ore. There are many junior mining houses that don’t actually mine the ore but there are those that do. I hung out at the Exhibitors Hall at the Indaba and that was also interesting. This is the deal making parlour. I’m sure you’ve been to a department store and they have the make-up stalls and all the women get free make-up and everyone is super happy. The Exhibitors Hall is something like that; everyone is selling something with their make-up of brochures, company information and freebies. Some stalls went as far as having a cocktail party with free food and drinks in the Exhibitors Hall. One thing the Australians know how to do is to through a party. The Australia Lounge was a really good place to a get a feel for the industry and get free food and beer too. I spoke to some juniors miners and they were of the view that the vibe was not as jovial as last year. The freebies could not change the sober mood at the Indaba. Things are truly bad in the Mining Industry.
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Open for Business
Day 2 of Mining Indaba and I had to be there at 750am, are you freaking kidding me! I made it on time but I was tired. The day begun with a speech by the Honourable Minister Buyelwa Sonjica- Minister of Minerals & Energy and she gave a general overview of the operating environment in South Africa from the government’s perspective. She also noted that things are bad but she counted that sentiment with some facts about what the government is doing in terms of infrastructure development, with particular emphasis on Eskom. She also noted the Mining Charter Review process. The minister gave a good account of the government’s work in the mining and energy space and that was encouraging.
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Just as you thought that the situation in the Zimbabwe economy could not get any worse, the country has now released a Z$100 trillion dollar note which last week would have been worth US$30. Other notes in trillion-dollar denominations of 10, 20 and 50 are also being released to help Zimbabweans cope with hyperinflation. In a statement on Thursday, the Reserve Bank of Zimbabwe said the notes will ensure that those in formal employment withdraw their salaries with minimal hassle.

“In a move meant to ensure that the public has access to their money from banks, the Reserve Bank of Zimbabwe has introduced a new family of banknotes which will gradually come into circulation, starting with the 10 trillion,” read the statement from the RBZ. With effect from January 12, workers can now withdraw their entire January salary in cash as long as they produce their current pay slips.
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What information asymmetry means in this case is where there is gross difference in knowledge. We learned a lot of things at schooling institutions but we still lack much more. I had a struggle putting together a business proposal recently. When I arrived at the meeting we had a chat not a proposal review. I discovered I did not need the proposal. But this opened a Pandora’s box for me. I felt that that was what we lacked as Africans. We are gradually becoming aware of academic information but lack the practical side of things.

We lack knowledge of where to buy financial products like shares, investment products,bonds and so on. We lack knowledge of how to start up a billion rand company from scratch. We are beginning to get exposure to these areas, but only a handful are fully aware of some of these. We are yet to see a vehicle maker started by one of us. We are proud of Mr Patrice Motsepe and pray for many more like him from among us. More people who dare to dream.

Just when you thought the situation in Zimbabwe could not get any worse, official statistics released today (Thursday) show that Zimbabwe’s annual inflation raced to a record 231m% in July, up from 11.2m %the previous month. Central Statistical Office data showed that on a monthly basis, went up by 2 600.2% compared to 839.3% in June, largely driven by high prices of bread and cereals.

Many had hoped that an agreement which was signed between the political parties in Zimbabwe in September would lead to economic recovery in the country, but the parties are still not agreeing on forming a new government. The longer they disagree, the worse the economy is going to get. There is already no cash in the country and people are no longer allowed to carry out electronic banking transactions. The economy and the country are slowly getting to a grinding halt and once the economy collapses then what?

As Zimbabweans continue to wait for a political solution to the country, the economy continues to sink deeper into the ground. On many occassions, people have said that the Zimbabwe economy has hit rock bottom but it seems like there is a level lower than ‘rock bottom’ and the Zimbabwe economy continues to sink to that level. How the Zimbabwe economy has managed to survive this long remains a mystery to many. On Wednesday (10 September), the Reserve Bank in Zimbabwe started to allow shops to sell goods in foreign currency to help ease shortages, the clearest sign authorities are losing the battle against a thriving black market. Central bank Governor Gideon Gono said 1 000 retailers and 200 wholesalers will be allowed to sell in foreign money, while motorists could also buy fuel in foreign currency. Read the rest of this entry »