Dr Keen Mhlanga
Global events, ranging from economic crises to natural disasters, have profound impacts on businesses worldwide.
These events can disrupt supply chains, alter consumer behaviour, and force companies to adapt rapidly to new realities. Here, we explore some of the significant effects of global events on businesses. In the context of Africa, global events exert a profound impact on businesses, shaping their strategies, operations, and resilience in the face of external forces.
Let us delve into examples of global events that have left an indelible mark on businesses in Africa, such as the African Continental Free Trade Area (AfCFTA) agreement, Cyclone Idai, political unrest in Zimbabwe, the COVID-19 pandemic, and the digital transformation sweeping through the continent.
The implementation of the African Continental Free Trade Area (AfCFTA) agreement in Africa heralds a new era of economic integration, trade liberalization, and market opportunities for businesses across the continent.
By fostering intra-African trade, reducing tariffs, and harmonizing regulations, the (AfCFTA) paves the way for businesses in Zimbabwe and other African countries to expand their reach, drive innovation, and capitalize on a burgeoning regional market.
In addition, Zimbabwe recently held its annually Zimbabwe Agriculture Show where The Zimbabwe Agricultural Show serves as a cornerstone event that aims to provide a platform for businesses in the agricultural sector to showcase their products, innovations, and services.
The overarching goals of the Zimbabwe Agricultural Show to businesses can be summarised as follows:
Promotion and marketing opportunities: The show offers businesses a prime opportunity to promote their agricultural products, technologies, and services to a wide audience of farmers, industry professionals, policymakers, and consumers.
Through exhibitions, demonstrations, and networking sessions, businesses can enhance brand visibility, generate leads, and forge valuable partnerships within the agricultural community.
Market expansion and business development: Participation in the Zimbabwe Agricultural Show enables businesses to expand their market reach, explore new business opportunities, and engage with potential customers and partners.
By showcasing their offerings to a diverse audience, businesses can attract new clients, secure sales leads, and diversify their customer base, ultimately driving business growth and development.
Innovation and technology showcase: The show serves as a platform for businesses to highlight their innovations, technologies, and solutions that can drive efficiency, productivity, and sustainability in the agricultural sector.
From Agrotech startups to established agribusinesses, businesses can demonstrate cutting-edge products and services that address key challenges facing the industry, fostering a culture of innovation and knowledge sharing among stakeholders.
The devastation wrought by Cyclone Idai in 2019 left a trail of destruction in Zimbabwe and neighbouring countries, disrupting businesses, infrastructure, and livelihoods.
From agriculture and tourism to manufacturing and logistics, businesses grappled with the aftermath of the cyclone, highlighting the imperative of disaster preparedness, resilience, and community support in the face of natural disasters.
Disruption of operations: Cyclone Idai caused widespread destruction to infrastructure, including roads, buildings, and utilities, leading to the disruption of business operations. Many businesses were forced to suspend their activities or operate at reduced capacity due to damage to their facilities, equipment, and supply chains.
This disruption not only resulted in financial losses but also affected the livelihoods of employees and communities. The cyclone disrupted transportation networks and logistics, making it difficult for businesses to receive raw materials, distribute products, and fulfill orders.
Supply chain disruptions caused delays in production, shortages of goods, and increased costs for businesses, impacting their ability to meet customer demand and maintain profitability.
Periodic bouts of political unrest in Zimbabwe have cast a shadow of uncertainty over businesses, impacting investor confidence, market stability, and economic growth. Businesses operating in Zimbabwe navigate a complex landscape of political risks, policy uncertainties, and social tensions, requiring agility, adaptability, and strategic foresight to thrive in a challenging environment.
The fluctuating political climate in Zimbabwe not only affects investor confidence but also contributes to market instability. Foreign investors, in particular, are wary of committing capital to a country where political uncertainty prevails.
This lack of external investment can hinder economic growth and limit opportunities for businesses to expand and innovate.
Moreover, market stability is crucial for businesses to operate effectively. Political unrest can lead to disruptions in supply chains, fluctuations in currency values, and uncertainty in regulatory frameworks.
These factors can impact businesses’ ability to plan for the future, make strategic investments, and maintain consistent operations. Businesses operating in Zimbabwe must contend with policy uncertainties stemming from political instability.
Changes in government policies, regulations, and tax laws can occur abruptly, creating challenges for businesses to adapt and comply with new requirements. This uncertainty can hinder long-term planning, investment decisions, and overall business growth.
Navigating regulatory challenges becomes increasingly complex in a politically unstable environment. Businesses may face obstacles such as bureaucratic hurdles, corruption, and inconsistent enforcement of laws.
Compliance with regulations becomes a delicate balancing act for businesses seeking to operate ethically and within the confines of the law.
The COVID-19 pandemic unleashed unprecedented challenges for businesses in Africa and Zimbabwe, disrupting industries, supply chains, and consumer behaviours.
From lockdowns and border closures to remote work and digital transformation, businesses pivoted rapidly to adapt to the new normal, highlighting the resilience, innovation, and adaptability of businesses in the face of a global health crisis.
Disrupted supply chains: One of the most significant effects of Covid-19 on businesses has been the disruption of supply chains. Lockdowns, travel restrictions, and factory closures have led to delays in production, shortages of raw materials, and logistical challenges for businesses reliant on global supply networks.
This disruption has forced businesses to reevaluate their supply chain strategies, diversify sourcing options, and adopt more agile and resilient supply chain management practices.
Shift in consumer behaviour: The pandemic has triggered a shift in consumer behaviour, with preferences moving towards online shopping, contactless transactions, and digital experiences.
Businesses have had to adapt quickly to meet changing consumer demands, accelerate their digital transformation efforts, and enhance their online presence to remain competitive in an increasingly digital marketplace.
Remote work and digital transformation: The widespread adoption of remote work and digital technologies has been a silver lining for businesses during the pandemic.
Companies have had to pivot quickly to enable remote work, leverage digital collaboration tools, and embrace cloud-based solutions to ensure business continuity. This accelerated digital transformation has not only enabled businesses to adapt to the new normal but has also opened up new opportunities for innovation and efficiency.
The digital revolution sweeping through Africa is reshaping business landscapes, fueling innovation, and unlocking new opportunities for growth and competitiveness.
From mobile banking and e-commerce to fintech and agritech, businesses in Zimbabwe and across Africa are harnessing digital technologies to drive efficiency, expand market reach, and enhance customer experiences in an increasingly interconnected and tech-driven world.
In Zimbabwe and across the continent, businesses are harnessing digital technologies to drive efficiency, expand market reach, and enhance customer experiences in an increasingly interconnected and tech-driven world.
One real-world example of a company in Zimbabwe that has embraced the digital revolution is EcoCash, a mobile payment platform that has transformed the way people in Zimbabwe conduct financial transactions.
EcoCash allows users to send money, pay bills, top up airtime, and make purchases using their mobile phones, providing a convenient and secure alternative to traditional banking services. By leveraging mobile technology, EcoCash has revolutionised the financial services industry in Zimbabwe, promoting financial inclusion and driving economic empowerment for individuals and businesses alike.
In the e-commerce sector, companies like Techzim Marketplace have capitalised on the digital revolution to create online platforms that connect buyers and sellers, enabling transactions to take place seamlessly in the virtual space.
Techzim Marketplace provides a digital marketplace where individuals and businesses can buy and sell a wide range of goods and services, fostering a vibrant online ecosystem that promotes trade, entrepreneurship, and economic growth in Zimbabwe.
As we reflect on the impact of global events on businesses in Africa and Zimbabwe, we witness a tapestry of challenges, opportunities, and transformations that define the business landscape in the region.
By embracing the lessons of the past, navigating the uncertainties of the present, and harnessing the opportunities of the future, businesses in Africa and Zimbabwe can chart a path towards sustainable growth, resilience, and prosperity in a world shaped by the dynamic forces of global events and local realities.
Dr Keen Mhlanga is an investment advisor with high skills in finance. He is the executive chairperson of FinKing Financial Advisory. Send your feedback to [email protected] , contact him on 0777597526.
