#Finance Bank Zambia

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Dr. Rajan Lekhraj Mahtani is a noted businessman, philanthropist and charity worker in Zambia with several successful businesses. Read More.

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Excerpt from this story from DeSmog Blog:

With its unparalleled purchasing power and exacting demands, fast food has long shaped agricultural systems in the United States, Europe, and China. But as major American fast food brands, like KFC, expand into so-called “frontier markets,” taxpayer-funded development banks have made their global expansion possible by underwriting the factory farms that supply them with chicken, a DeSmog investigation has found. 

In all, the investigation identified five factory-scale poultry companies in as many countries that have received financial support from the International Finance Corporation (IFC, the private-sector lending arm of the World Bank Group), the European Bank for Reconstruction and Development (EBRD), or both since 2003, and that supply chicken to KFC. A sixth company has benefited from IFC advisory services but has not received financing. 

A review of press accounts, financial disclosures, and the companies’ websites shows this support aided these firms’ KFC-linked operations in up to 13 countries in Asia, Africa, and Europe. 

In Kazakhstan, both banks helped a Soviet-era poultry factory become a KFC supplier. In 2011, the IFC lent poultry company Ust-Kamenogorsk Poultry (UKPF) invested $2 million in refurbishing housing for chickens, among other projects. In 2016, the EBRD made a $20 million equity investment in the company’s parent, Aitas, to finance the construction of a new facility to raise and process poultry. In 2018, two years after announcing the financing deal, UKPF revealed it had become a supplier to KFC in Kazakhstan. The EBRD sold its stake in the company in 2019. 

In South Africa, the IFC helped one KFC supplier bolster its operations across the region. In 2013, the bank loaned Country Bird Holdings $25 million to expand existing operations in South Africa, Botswana, and Zambia. Country Bird supplies KFC in all three countries, as well as Mozambique and Zimbabwe. Three years later, in 2016, Country Bird also became KFC’s sole franchisee in Zambia.

In Jordan, the EBRD’s technical support and a 2015 loan worth up to $21 million helped poultry company Al Jazeera Agricultural Company upgrade its facilities and expand its retail presence. Al Jazeera claims to produce half the country’s restaurant-sold chicken. It includes the local franchisees of KFC and Texas Chicken (known by its original name, Church’s Chicken, in the U.S.) as clients. 

With this Global North-financed fast-food expansion comes a host of environmental, social, and health concerns in regions often unprepared to field them.

“It’s so clear that these investments are not consistent with any coherent notion of sustainable development,” Kari Hamerschlag, deputy director for the food and agriculture program at Friends of the Earth US, told DeSmog. 

Providing Financial Security for Fast Food Suppliers 

Both the IFC and the EBRD are financed primarily by the governments of developed countries for the benefit of developing countries. The IFC was founded in 1956 under the umbrella of the World Bank Group to stimulate developing economies by lending directly to businesses. Founded in 1991, the EBRD was formed to support Eastern Europe’s transition to a market economy. Since then, it has extended its geographic reach to include other regions. 

Development banks often finance companies and projects in regions that more risk-averse commercial banks tend to avoid. The idea is to help grow a company’s operations and lower the risk for private sector investors. 

Both of these development banks’ investments cover a range of sectors, including manufacturing, education, agribusiness, energy, and tourism. Because large agro-processors, such as poultry companies, can transform bushel upon bushel of local crops into more valuable products, like meat, they make especially attractive clients. 

The world’s largest restaurant company, U.S.-based Yum! Brands, owns KFC, and calls the fried chicken powerhouse, which oversees more than 30,000 locations across the globe, a “major growth engine.” 

[beardedmrbean]

A dozen poor countries are facing economic instability and even collapse under the weight of hundreds of billions of dollars in foreign loans, much of them from the world’s biggest and most unforgiving government lender, China.

An Associated Press analysis of a dozen countries most indebted to China — including Pakistan, Kenya, Zambia, Laos and Mongolia — found paying back that debt is consuming an ever-greater amount of the tax revenue needed to keep schools open, provide electricity and pay for food and fuel. And it’s draining foreign currency reserves these countries use to pay interest on those loans, leaving some with just months before that money is gone.

Behind the scenes is China’s reluctance to forgive debt and its extreme secrecy about how much money it has loaned and on what terms, which has kept other major lenders from stepping in to help. On top of that is the recent discovery that borrowers have been required to put cash in hidden escrow accounts that push China to the front of the line of creditors to be paid.

Countries in AP’s analysis had as much as 50% of their foreign loans from China and most were devoting more than a third of government revenue to paying off foreign debt. Two of them, Zambia and Sri Lanka, have already gone into default, unable to make even interest payments on loans financing the construction of ports, mines and power plants.

In Pakistan, millions of textile workers have been laid off because the country has too much foreign debt and can’t afford to keep the electricity on and machines running.

In Kenya, the government has held back paychecks to thousands of civil service workers to save cash to pay foreign loans. The president’s chief economic adviser tweeted last month, “Salaries or default? Take your pick.”

Since Sri Lanka defaulted a year ago, a half-million industrial jobs have vanished, inflation has pierced 50% and more than half the population in many parts of the country has fallen into poverty.

Experts predict that unless China begins to soften its stance on its loans to poor countries, there could be a wave of more defaults and political upheavals.

“In a lot of the world, the clock has hit midnight,” said Harvard economist Ken Rogoff. “ China has moved in and left this geopolitical instability that could have long-lasting effects.”

HOW IT'S PLAYING OUT

A case study of how it has played out is in Zambia, a landlocked country of 20 million people in southern Africa that over the past two decades has borrowed billions of dollars from Chinese state-owned banks to build dams, railways and roads.

The loans boosted Zambia’s economy but also raised foreign interest payments so high there was little left for the government, forcing it to cut spending on healthcare, social services and subsidies to farmers for seed and fertilizer.

In the past under such circumstances, big government lenders such as the U.S., Japan and France would work out deals to forgive some debt, with each lender disclosing clearly what they were owed and on what terms so no one would feel cheated.

But China didn't play by those rules. It refused at first to even join in multinational talks, negotiating separately with Zambia and insisting on confidentiality that barred the country from telling non-Chinese lenders the terms of the loans and whether China had devised a way of muscling to the front of the repayment line.

Amid this confusion in 2020, a group of non-Chinese lenders refused desperate pleas from Zambia to suspend interest payments, even for a few months. That refusal added to the drain on Zambia’s foreign cash reserves, the stash of mostly U.S. dollars that it used to pay interest on loans and to buy major commodities like oil. By November 2020, with little reserves left, Zambia stopped paying the interest and defaulted, locking it out of future borrowing and setting off a vicious cycle of spending cuts and deepening poverty.

Continued in the link

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Think local and regional to sustain scaling South African enterprise growth - Journal Today Web https://www.merchant-business.com/think-local-and-regional-to-sustain-scaling-south-african-enterprise-growth/?feed_id=197730&_unique_id=66e3866d4fd2d #GLOBAL - BLOGGER BLOGGER With many SADC countries facing energy shortages, the renewable energy sector provides the needed recourse. Scaling South African businesses can, therefore, provide solar, wind, and other renewable energy solutions regionallySouth Africa’s economy grew at a modest annual average rate of 0.3% to 2% from 2021 to 2023. In contrast, the Southern African Development Community’s (SADC’s) economy expanded at a faster pace, with average growth rates ranging from 2.5% to 4%, according to the World Bank, International Monetary Fund (IMF), and United Nations. Leading SADC economies included Botswana, Mozambique, Zambia and Tanzania, experienced more robust growth, ranging between 3.5% and 6%. Other countries worth noting included Angola (which grew by between 3% and 4%), and Malawi (about 4% annually). Given these figures, a regional approach offers greater growth potential for South African businesses, particularly small and medium-sized enterprises (SMEs) looking to scale in the next three to five years. As the South African domestic market remains highly competitive and dominated by larger, more established enterprises, the SADC region presents untapped opportunities for expanding businesses to grow sustainably.Digital Products Why a regional focus is keyIn South Africa’s mature and predominantly oligopolistic market, competition for limited resources will be fierce, with procuring teams typically awarding opportunities to larger and more established organisations. For smaller enterprises, this creates a tough environment where the odds of breaking through are slim. The larger players are often seen as “safe bets” for procurement, suggesting smaller companies will need to go the extra mile to prove themselves and avoid costly mistakes to stand a chance over the longer-term. Given this context, many SMEs face significant barriers to growth domestically. In contrast, the SADC region offers a more favourable landscape for expansion. But this comes with problems, including differing regulations, business environments and socio-cultural dynamics. Setting up in a new country involves significant costs, and mistakes in regional expansion can jeopardise not only the venture abroad but the company’s operations in its home market as well. For this reason, collaboration with local partners in target markets is crucial.Partnering with a local enterprise can provide a South African business with vital knowledge, networks and trust within the host market. By teaming up with a host nation local partner, a South African SME signals its long-term commitment to the region and creates mutually beneficial relationships that support both businesses’ success. But partnerships should be approached with care and thorough due diligence. Assessing the prospective partner’s track record and gathering referrals from trusted sources can mitigate such risks. It is also essential to carry out commercial, legal, and financial checks to ensure a sound foundation for collaboration.Financing regional expansion is another critical challenge. While SADC has yet to establish itself as a cohesive trading bloc, making regional funding options limited, donor agencies currently fill part of the financing gap. But donor funding is finite and cannot support widespread growth. The SMEs seeking to scale up must look to development financiers, despite most of these institutions preferring to usually lend to larger, established companies with proven financial stability. For smaller businesses, gaining access to capital for regional expansion requires presenting a compelling case for commercial viability. Companies must demonstrate solid revenues, profitability and the ability to repay loans. Additionally, securing

guarantees from home markets can be complex, leading some businesses to seek funding within each country they plan to expand into. As a result, local partnerships will again be beneficial here due to them providing some of the local credibility needed to secure financing from host country banks or co-financing arrangements between regional and South African lenders.When expanding regionally, SMEs should focus on their core strengths and adjust only where necessary. Trying to diversify too much in unfamiliar markets can lead to failure. Instead, businesses should leverage their existing success while tailoring their approach to local market nuances. For example, a refrigerator manufacturer looking to expand into a regional market where most consumers are weekly wage earners might adjust their product mix to offer more units at affordable price points for these consumers. This adjustment ensures the company stays true to its core business model while catering to local market conditions.Digital Products Sectors with regional growth potentialGiven the SADC’s diverse economic landscape, several sectors offer significant growth opportunities for South Africa’s scaling businesses. These include:Agriculture and agro-processing: SADC countries are heavily reliant on agriculture, and there is significant potential to introduce and progress modern farming techniques, equipment, and agro-processing capabilities. South Africa’s established agribusiness expertise can be leveraged to build scalable ventures across the region, where food security and value-addition are priority areas.Renewable energy: With many SADC countries facing energy shortages, the renewable energy sector provides the needed recourse. Scaling South African businesses can, therefore, provide solar, wind, and other renewable energy solutions regionally, benefiting from lower production and import costs and favourable regulatory frameworks across some SADC countries.Light manufacturing and distribution: Manufacturing capabilities in South Africa can be used to produce goods that can be distributed across the region. By setting up local distribution hubs and manufacturing centres in neighbouring countries, companies can cut costs and serve regional markets more efficiently.Retail and digital services: As mobile and internet penetration rises across the SADC, digital services, particularly fintech, e-commerce and logistics present significant opportunities. South African companies can offer scalable digital platforms that cater to regional consumers and businesses, expanding their reach beyond the local market.Based on the above, focusing on regional opportunities in the SADC presents a viable pathway for scaling South African SMEs facing a depressed local economy. Key to success will be strategic partnerships, securing adequate funding and remaining committed to core strengths while adapting to local market demands. As SMEs navigate these opportunities, learning from larger enterprises and following a carefully planned regional strategy will ensure sustained, long-term success.James Maposa is the managing director at Birguid.“The SADC offers potential for growth across various sectors by leveraging South Africa’s strengths in agriculture, energy, manufacturing and digital services…”Source Link: https://mg.co.za/thought-leader/2024-09-10-think-local-and-regional-to-sustain-scaling-south-african-enterprise-growth/ http://109.70.148.72/~merchant29/6network/wp-content/uploads/2024/09/stock-photo-think-global-act-local-symbol-torn-orange-paper-with-words-think-global-act-local-beauti.jpeg With many SADC countries facing energy shortages, the renewable energy sector provides the needed recourse. Scaling South African businesses can, therefore, provide solar, wind, and other renewable energy solutions regionally South Africa’s economy grew at a modest annual average rate of 0.3% to 2% from 2021 to 2023. In contrast, the Southern African Development Community’s … Read More

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Think local and regional to sustain scaling South African enterprise growth - Journal Today Web - #GLOBAL https://www.merchant-business.com/think-local-and-regional-to-sustain-scaling-south-african-enterprise-growth/?feed_id=197728&_unique_id=66e3866bb80be With many SADC countries facing energy shortages, the renewable energy sector provides the needed recourse. Scaling South African businesses can, therefore, provide solar, wind, and other renewable energy solutions regionallySouth Africa’s economy grew at a modest annual average rate of 0.3% to 2% from 2021 to 2023. In contrast, the Southern African Development Community’s (SADC’s) economy expanded at a faster pace, with average growth rates ranging from 2.5% to 4%, according to the World Bank, International Monetary Fund (IMF), and United Nations. Leading SADC economies included Botswana, Mozambique, Zambia and Tanzania, experienced more robust growth, ranging between 3.5% and 6%. Other countries worth noting included Angola (which grew by between 3% and 4%), and Malawi (about 4% annually). Given these figures, a regional approach offers greater growth potential for South African businesses, particularly small and medium-sized enterprises (SMEs) looking to scale in the next three to five years. As the South African domestic market remains highly competitive and dominated by larger, more established enterprises, the SADC region presents untapped opportunities for expanding businesses to grow sustainably.Digital Products Why a regional focus is keyIn South Africa’s mature and predominantly oligopolistic market, competition for limited resources will be fierce, with procuring teams typically awarding opportunities to larger and more established organisations. For smaller enterprises, this creates a tough environment where the odds of breaking through are slim. The larger players are often seen as “safe bets” for procurement, suggesting smaller companies will need to go the extra mile to prove themselves and avoid costly mistakes to stand a chance over the longer-term. Given this context, many SMEs face significant barriers to growth domestically. In contrast, the SADC region offers a more favourable landscape for expansion. But this comes with problems, including differing regulations, business environments and socio-cultural dynamics. Setting up in a new country involves significant costs, and mistakes in regional expansion can jeopardise not only the venture abroad but the company’s operations in its home market as well. For this reason, collaboration with local partners in target markets is crucial.Partnering with a local enterprise can provide a South African business with vital knowledge, networks and trust within the host market. By teaming up with a host nation local partner, a South African SME signals its long-term commitment to the region and creates mutually beneficial relationships that support both businesses’ success. But partnerships should be approached with care and thorough due diligence. Assessing the prospective partner’s track record and gathering referrals from trusted sources can mitigate such risks. It is also essential to carry out commercial, legal, and financial checks to ensure a sound foundation for collaboration.Financing regional expansion is another critical challenge. While SADC has yet to establish itself as a cohesive trading bloc, making regional funding options limited, donor agencies currently fill part of the financing gap. But donor funding is finite and cannot support widespread growth. The SMEs seeking to scale up must look to development financiers, despite most of these institutions preferring to usually lend to larger, established companies with proven financial stability. For smaller businesses, gaining access to capital for regional expansion requires presenting a compelling case for commercial viability. Companies must demonstrate solid revenues, profitability and the ability to repay loans. Additionally, securing guarantees from

home markets can be complex, leading some businesses to seek funding within each country they plan to expand into. As a result, local partnerships will again be beneficial here due to them providing some of the local credibility needed to secure financing from host country banks or co-financing arrangements between regional and South African lenders.When expanding regionally, SMEs should focus on their core strengths and adjust only where necessary. Trying to diversify too much in unfamiliar markets can lead to failure. Instead, businesses should leverage their existing success while tailoring their approach to local market nuances. For example, a refrigerator manufacturer looking to expand into a regional market where most consumers are weekly wage earners might adjust their product mix to offer more units at affordable price points for these consumers. This adjustment ensures the company stays true to its core business model while catering to local market conditions.Digital Products Sectors with regional growth potentialGiven the SADC’s diverse economic landscape, several sectors offer significant growth opportunities for South Africa’s scaling businesses. These include:Agriculture and agro-processing: SADC countries are heavily reliant on agriculture, and there is significant potential to introduce and progress modern farming techniques, equipment, and agro-processing capabilities. South Africa’s established agribusiness expertise can be leveraged to build scalable ventures across the region, where food security and value-addition are priority areas.Renewable energy: With many SADC countries facing energy shortages, the renewable energy sector provides the needed recourse. Scaling South African businesses can, therefore, provide solar, wind, and other renewable energy solutions regionally, benefiting from lower production and import costs and favourable regulatory frameworks across some SADC countries.Light manufacturing and distribution: Manufacturing capabilities in South Africa can be used to produce goods that can be distributed across the region. By setting up local distribution hubs and manufacturing centres in neighbouring countries, companies can cut costs and serve regional markets more efficiently.Retail and digital services: As mobile and internet penetration rises across the SADC, digital services, particularly fintech, e-commerce and logistics present significant opportunities. South African companies can offer scalable digital platforms that cater to regional consumers and businesses, expanding their reach beyond the local market.Based on the above, focusing on regional opportunities in the SADC presents a viable pathway for scaling South African SMEs facing a depressed local economy. Key to success will be strategic partnerships, securing adequate funding and remaining committed to core strengths while adapting to local market demands. As SMEs navigate these opportunities, learning from larger enterprises and following a carefully planned regional strategy will ensure sustained, long-term success.James Maposa is the managing director at Birguid.“The SADC offers potential for growth across various sectors by leveraging South Africa’s strengths in agriculture, energy, manufacturing and digital services…”Source Link: https://mg.co.za/thought-leader/2024-09-10-think-local-and-regional-to-sustain-scaling-south-african-enterprise-growth/ http://109.70.148.72/~merchant29/6network/wp-content/uploads/2024/09/stock-photo-think-global-act-local-symbol-torn-orange-paper-with-words-think-global-act-local-beauti.jpeg BLOGGER - #GLOBAL

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Think local and regional to sustain scaling South African enterprise growth - Journal Today Web - BLOGGER https://www.merchant-business.com/think-local-and-regional-to-sustain-scaling-south-african-enterprise-growth/?feed_id=197726&_unique_id=66e386690e515 With many SADC countries facing energy shortages, the renewable energy sector provides the needed recourse. Scaling South African businesses can, therefore, provide solar, wind, and other renewable energy solutions regionallySouth Africa’s economy grew at a modest annual average rate of 0.3% to 2% from 2021 to 2023. In contrast, the Southern African Development Community’s (SADC’s) economy expanded at a faster pace, with average growth rates ranging from 2.5% to 4%, according to the World Bank, International Monetary Fund (IMF), and United Nations. Leading SADC economies included Botswana, Mozambique, Zambia and Tanzania, experienced more robust growth, ranging between 3.5% and 6%. Other countries worth noting included Angola (which grew by between 3% and 4%), and Malawi (about 4% annually). Given these figures, a regional approach offers greater growth potential for South African businesses, particularly small and medium-sized enterprises (SMEs) looking to scale in the next three to five years. As the South African domestic market remains highly competitive and dominated by larger, more established enterprises, the SADC region presents untapped opportunities for expanding businesses to grow sustainably.Digital Products Why a regional focus is keyIn South Africa’s mature and predominantly oligopolistic market, competition for limited resources will be fierce, with procuring teams typically awarding opportunities to larger and more established organisations. For smaller enterprises, this creates a tough environment where the odds of breaking through are slim. The larger players are often seen as “safe bets” for procurement, suggesting smaller companies will need to go the extra mile to prove themselves and avoid costly mistakes to stand a chance over the longer-term. Given this context, many SMEs face significant barriers to growth domestically. In contrast, the SADC region offers a more favourable landscape for expansion. But this comes with problems, including differing regulations, business environments and socio-cultural dynamics. Setting up in a new country involves significant costs, and mistakes in regional expansion can jeopardise not only the venture abroad but the company’s operations in its home market as well. For this reason, collaboration with local partners in target markets is crucial.Partnering with a local enterprise can provide a South African business with vital knowledge, networks and trust within the host market. By teaming up with a host nation local partner, a South African SME signals its long-term commitment to the region and creates mutually beneficial relationships that support both businesses’ success. But partnerships should be approached with care and thorough due diligence. Assessing the prospective partner’s track record and gathering referrals from trusted sources can mitigate such risks. It is also essential to carry out commercial, legal, and financial checks to ensure a sound foundation for collaboration.Financing regional expansion is another critical challenge. While SADC has yet to establish itself as a cohesive trading bloc, making regional funding options limited, donor agencies currently fill part of the financing gap. But donor funding is finite and cannot support widespread growth. The SMEs seeking to scale up must look to development financiers, despite most of these institutions preferring to usually lend to larger, established companies with proven financial stability. For smaller businesses, gaining access to capital for regional expansion requires presenting a compelling case for commercial viability. Companies must demonstrate solid revenues, profitability and the ability to repay loans. Additionally, securing guarantees from

home markets can be complex, leading some businesses to seek funding within each country they plan to expand into. As a result, local partnerships will again be beneficial here due to them providing some of the local credibility needed to secure financing from host country banks or co-financing arrangements between regional and South African lenders.When expanding regionally, SMEs should focus on their core strengths and adjust only where necessary. Trying to diversify too much in unfamiliar markets can lead to failure. Instead, businesses should leverage their existing success while tailoring their approach to local market nuances. For example, a refrigerator manufacturer looking to expand into a regional market where most consumers are weekly wage earners might adjust their product mix to offer more units at affordable price points for these consumers. This adjustment ensures the company stays true to its core business model while catering to local market conditions.Digital Products Sectors with regional growth potentialGiven the SADC’s diverse economic landscape, several sectors offer significant growth opportunities for South Africa’s scaling businesses. These include:Agriculture and agro-processing: SADC countries are heavily reliant on agriculture, and there is significant potential to introduce and progress modern farming techniques, equipment, and agro-processing capabilities. South Africa’s established agribusiness expertise can be leveraged to build scalable ventures across the region, where food security and value-addition are priority areas.Renewable energy: With many SADC countries facing energy shortages, the renewable energy sector provides the needed recourse. Scaling South African businesses can, therefore, provide solar, wind, and other renewable energy solutions regionally, benefiting from lower production and import costs and favourable regulatory frameworks across some SADC countries.Light manufacturing and distribution: Manufacturing capabilities in South Africa can be used to produce goods that can be distributed across the region. By setting up local distribution hubs and manufacturing centres in neighbouring countries, companies can cut costs and serve regional markets more efficiently.Retail and digital services: As mobile and internet penetration rises across the SADC, digital services, particularly fintech, e-commerce and logistics present significant opportunities. South African companies can offer scalable digital platforms that cater to regional consumers and businesses, expanding their reach beyond the local market.Based on the above, focusing on regional opportunities in the SADC presents a viable pathway for scaling South African SMEs facing a depressed local economy. Key to success will be strategic partnerships, securing adequate funding and remaining committed to core strengths while adapting to local market demands. As SMEs navigate these opportunities, learning from larger enterprises and following a carefully planned regional strategy will ensure sustained, long-term success.James Maposa is the managing director at Birguid.“The SADC offers potential for growth across various sectors by leveraging South Africa’s strengths in agriculture, energy, manufacturing and digital services…”Source Link: https://mg.co.za/thought-leader/2024-09-10-think-local-and-regional-to-sustain-scaling-south-african-enterprise-growth/ http://109.70.148.72/~merchant29/6network/wp-content/uploads/2024/09/stock-photo-think-global-act-local-symbol-torn-orange-paper-with-words-think-global-act-local-beauti.jpeg #GLOBAL - BLOGGER With many SADC coun... BLOGGER - #GLOBAL

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Think local and regional to sustain scaling South African enterprise growth - Journal Today Web - BLOGGER https://www.merchant-business.com/think-local-and-regional-to-sustain-scaling-south-african-enterprise-growth/?feed_id=197725&_unique_id=66e38667c741c With many SADC countries facing energy shortages, the renewable energy sector provides the needed recourse. Scaling South African businesses can, therefore, provide solar, wind, and other renewable energy solutions regionallySouth Africa’s economy grew at a modest annual average rate of 0.3% to 2% from 2021 to 2023. In contrast, the Southern African Development Community’s (SADC’s) economy expanded at a faster pace, with average growth rates ranging from 2.5% to 4%, according to the World Bank, International Monetary Fund (IMF), and United Nations. Leading SADC economies included Botswana, Mozambique, Zambia and Tanzania, experienced more robust growth, ranging between 3.5% and 6%. Other countries worth noting included Angola (which grew by between 3% and 4%), and Malawi (about 4% annually). Given these figures, a regional approach offers greater growth potential for South African businesses, particularly small and medium-sized enterprises (SMEs) looking to scale in the next three to five years. As the South African domestic market remains highly competitive and dominated by larger, more established enterprises, the SADC region presents untapped opportunities for expanding businesses to grow sustainably.Digital Products Why a regional focus is keyIn South Africa’s mature and predominantly oligopolistic market, competition for limited resources will be fierce, with procuring teams typically awarding opportunities to larger and more established organisations. For smaller enterprises, this creates a tough environment where the odds of breaking through are slim. The larger players are often seen as “safe bets” for procurement, suggesting smaller companies will need to go the extra mile to prove themselves and avoid costly mistakes to stand a chance over the longer-term. Given this context, many SMEs face significant barriers to growth domestically. In contrast, the SADC region offers a more favourable landscape for expansion. But this comes with problems, including differing regulations, business environments and socio-cultural dynamics. Setting up in a new country involves significant costs, and mistakes in regional expansion can jeopardise not only the venture abroad but the company’s operations in its home market as well. For this reason, collaboration with local partners in target markets is crucial.Partnering with a local enterprise can provide a South African business with vital knowledge, networks and trust within the host market. By teaming up with a host nation local partner, a South African SME signals its long-term commitment to the region and creates mutually beneficial relationships that support both businesses’ success. But partnerships should be approached with care and thorough due diligence. Assessing the prospective partner’s track record and gathering referrals from trusted sources can mitigate such risks. It is also essential to carry out commercial, legal, and financial checks to ensure a sound foundation for collaboration.Financing regional expansion is another critical challenge. While SADC has yet to establish itself as a cohesive trading bloc, making regional funding options limited, donor agencies currently fill part of the financing gap. But donor funding is finite and cannot support widespread growth. The SMEs seeking to scale up must look to development financiers, despite most of these institutions preferring to usually lend to larger, established companies with proven financial stability. For smaller businesses, gaining access to capital for regional expansion requires presenting a compelling case for commercial viability. Companies must demonstrate solid revenues, profitability and the ability to repay loans. Additionally, securing guarantees from

home markets can be complex, leading some businesses to seek funding within each country they plan to expand into. As a result, local partnerships will again be beneficial here due to them providing some of the local credibility needed to secure financing from host country banks or co-financing arrangements between regional and South African lenders.When expanding regionally, SMEs should focus on their core strengths and adjust only where necessary. Trying to diversify too much in unfamiliar markets can lead to failure. Instead, businesses should leverage their existing success while tailoring their approach to local market nuances. For example, a refrigerator manufacturer looking to expand into a regional market where most consumers are weekly wage earners might adjust their product mix to offer more units at affordable price points for these consumers. This adjustment ensures the company stays true to its core business model while catering to local market conditions.Digital Products Sectors with regional growth potentialGiven the SADC’s diverse economic landscape, several sectors offer significant growth opportunities for South Africa’s scaling businesses. These include:Agriculture and agro-processing: SADC countries are heavily reliant on agriculture, and there is significant potential to introduce and progress modern farming techniques, equipment, and agro-processing capabilities. South Africa’s established agribusiness expertise can be leveraged to build scalable ventures across the region, where food security and value-addition are priority areas.Renewable energy: With many SADC countries facing energy shortages, the renewable energy sector provides the needed recourse. Scaling South African businesses can, therefore, provide solar, wind, and other renewable energy solutions regionally, benefiting from lower production and import costs and favourable regulatory frameworks across some SADC countries.Light manufacturing and distribution: Manufacturing capabilities in South Africa can be used to produce goods that can be distributed across the region. By setting up local distribution hubs and manufacturing centres in neighbouring countries, companies can cut costs and serve regional markets more efficiently.Retail and digital services: As mobile and internet penetration rises across the SADC, digital services, particularly fintech, e-commerce and logistics present significant opportunities. South African companies can offer scalable digital platforms that cater to regional consumers and businesses, expanding their reach beyond the local market.Based on the above, focusing on regional opportunities in the SADC presents a viable pathway for scaling South African SMEs facing a depressed local economy. Key to success will be strategic partnerships, securing adequate funding and remaining committed to core strengths while adapting to local market demands. As SMEs navigate these opportunities, learning from larger enterprises and following a carefully planned regional strategy will ensure sustained, long-term success.James Maposa is the managing director at Birguid.“The SADC offers potential for growth across various sectors by leveraging South Africa’s strengths in agriculture, energy, manufacturing and digital services…”Source Link: https://mg.co.za/thought-leader/2024-09-10-think-local-and-regional-to-sustain-scaling-south-african-enterprise-growth/ http://109.70.148.72/~merchant29/6network/wp-content/uploads/2024/09/stock-photo-think-global-act-local-symbol-torn-orange-paper-with-words-think-global-act-local-beauti.jpeg BLOGGER - #GLOBAL With many SADC countries facing energy shortages, the renewable energy sector provides the needed recourse. Scaling South African businesses can, therefore, provide solar, wind, and other renewable energy solutions regionally South Africa’s economy grew at a modest annual average rate of 0.3% to 2% from 2021 to 2023. In contrast, the Southern African Development Community’s … Read More

[onlinecompanynews]

Think local and regional to sustain scaling South African enterprise growth - Journal Today Web https://www.merchant-business.com/think-local-and-regional-to-sustain-scaling-south-african-enterprise-growth/?feed_id=197723&_unique_id=66e38664ea2c2 With many SADC coun... BLOGGER - #GLOBAL With many SADC countries facing energy shortages, the renewable energy sector provides the needed recourse. Scaling South African businesses can, therefore, provide solar, wind, and other renewable energy solutions regionallySouth Africa’s economy grew at a modest annual average rate of 0.3% to 2% from 2021 to 2023. In contrast, the Southern African Development Community’s (SADC’s) economy expanded at a faster pace, with average growth rates ranging from 2.5% to 4%, according to the World Bank, International Monetary Fund (IMF), and United Nations. Leading SADC economies included Botswana, Mozambique, Zambia and Tanzania, experienced more robust growth, ranging between 3.5% and 6%. Other countries worth noting included Angola (which grew by between 3% and 4%), and Malawi (about 4% annually). Given these figures, a regional approach offers greater growth potential for South African businesses, particularly small and medium-sized enterprises (SMEs) looking to scale in the next three to five years. As the South African domestic market remains highly competitive and dominated by larger, more established enterprises, the SADC region presents untapped opportunities for expanding businesses to grow sustainably.Digital Products Why a regional focus is keyIn South Africa’s mature and predominantly oligopolistic market, competition for limited resources will be fierce, with procuring teams typically awarding opportunities to larger and more established organisations. For smaller enterprises, this creates a tough environment where the odds of breaking through are slim. The larger players are often seen as “safe bets” for procurement, suggesting smaller companies will need to go the extra mile to prove themselves and avoid costly mistakes to stand a chance over the longer-term. Given this context, many SMEs face significant barriers to growth domestically. In contrast, the SADC region offers a more favourable landscape for expansion. But this comes with problems, including differing regulations, business environments and socio-cultural dynamics. Setting up in a new country involves significant costs, and mistakes in regional expansion can jeopardise not only the venture abroad but the company’s operations in its home market as well. For this reason, collaboration with local partners in target markets is crucial.Partnering with a local enterprise can provide a South African business with vital knowledge, networks and trust within the host market. By teaming up with a host nation local partner, a South African SME signals its long-term commitment to the region and creates mutually beneficial relationships that support both businesses’ success. But partnerships should be approached with care and thorough due diligence. Assessing the prospective partner’s track record and gathering referrals from trusted sources can mitigate such risks. It is also essential to carry out commercial, legal, and financial checks to ensure a sound foundation for collaboration.Financing regional expansion is another critical challenge. While SADC has yet to establish itself as a cohesive trading bloc, making regional funding options limited, donor agencies currently fill part of the financing gap. But donor funding is finite and cannot support widespread growth. The SMEs seeking to scale up must look to development financiers, despite most of these institutions preferring to usually lend to larger, established companies with proven financial stability. For smaller businesses, gaining access to capital for regional expansion requires presenting a compelling case for commercial viability. Companies must demonstrate solid revenues, profitability and the ability to repay loans. Additionally,

securing guarantees from home markets can be complex, leading some businesses to seek funding within each country they plan to expand into. As a result, local partnerships will again be beneficial here due to them providing some of the local credibility needed to secure financing from host country banks or co-financing arrangements between regional and South African lenders.When expanding regionally, SMEs should focus on their core strengths and adjust only where necessary. Trying to diversify too much in unfamiliar markets can lead to failure. Instead, businesses should leverage their existing success while tailoring their approach to local market nuances. For example, a refrigerator manufacturer looking to expand into a regional market where most consumers are weekly wage earners might adjust their product mix to offer more units at affordable price points for these consumers. This adjustment ensures the company stays true to its core business model while catering to local market conditions.Digital Products Sectors with regional growth potentialGiven the SADC’s diverse economic landscape, several sectors offer significant growth opportunities for South Africa’s scaling businesses. These include:Agriculture and agro-processing: SADC countries are heavily reliant on agriculture, and there is significant potential to introduce and progress modern farming techniques, equipment, and agro-processing capabilities. South Africa’s established agribusiness expertise can be leveraged to build scalable ventures across the region, where food security and value-addition are priority areas.Renewable energy: With many SADC countries facing energy shortages, the renewable energy sector provides the needed recourse. Scaling South African businesses can, therefore, provide solar, wind, and other renewable energy solutions regionally, benefiting from lower production and import costs and favourable regulatory frameworks across some SADC countries.Light manufacturing and distribution: Manufacturing capabilities in South Africa can be used to produce goods that can be distributed across the region. By setting up local distribution hubs and manufacturing centres in neighbouring countries, companies can cut costs and serve regional markets more efficiently.Retail and digital services: As mobile and internet penetration rises across the SADC, digital services, particularly fintech, e-commerce and logistics present significant opportunities. South African companies can offer scalable digital platforms that cater to regional consumers and businesses, expanding their reach beyond the local market.Based on the above, focusing on regional opportunities in the SADC presents a viable pathway for scaling South African SMEs facing a depressed local economy. Key to success will be strategic partnerships, securing adequate funding and remaining committed to core strengths while adapting to local market demands. As SMEs navigate these opportunities, learning from larger enterprises and following a carefully planned regional strategy will ensure sustained, long-term success.James Maposa is the managing director at Birguid.“The SADC offers potential for growth across various sectors by leveraging South Africa’s strengths in agriculture, energy, manufacturing and digital services…”Source Link: https://mg.co.za/thought-leader/2024-09-10-think-local-and-regional-to-sustain-scaling-south-african-enterprise-growth/ http://109.70.148.72/~merchant29/6network/wp-content/uploads/2024/09/stock-photo-think-global-act-local-symbol-torn-orange-paper-with-words-think-global-act-local-beauti.jpeg #GLOBAL - BLOGGER With many SADC countries facing energy shortages, the renewable energy sector provides the needed recourse. Scaling South African businesses can, therefore, provide solar, wind, and other renewable energy solutions regionally South Africa’s economy grew at a modest annual average rate of 0.3% to 2% from 2021 to 2023. In contrast, the Southern African Development Community’s

… Read More

[internetcompanynews]

Think local and regional to sustain scaling South African enterprise growth - Journal Today Web - BLOGGER https://www.merchant-business.com/think-local-and-regional-to-sustain-scaling-south-african-enterprise-growth/?feed_id=197721&_unique_id=66e386627fb52 With many SADC countries facing energy shortages, the renewable energy sector provides the needed recourse. Scaling South African businesses can, therefore, provide solar, wind, and other renewable energy solutions regionallySouth Africa’s economy grew at a modest annual average rate of 0.3% to 2% from 2021 to 2023. In contrast, the Southern African Development Community’s (SADC’s) economy expanded at a faster pace, with average growth rates ranging from 2.5% to 4%, according to the World Bank, International Monetary Fund (IMF), and United Nations. Leading SADC economies included Botswana, Mozambique, Zambia and Tanzania, experienced more robust growth, ranging between 3.5% and 6%. Other countries worth noting included Angola (which grew by between 3% and 4%), and Malawi (about 4% annually). Given these figures, a regional approach offers greater growth potential for South African businesses, particularly small and medium-sized enterprises (SMEs) looking to scale in the next three to five years. As the South African domestic market remains highly competitive and dominated by larger, more established enterprises, the SADC region presents untapped opportunities for expanding businesses to grow sustainably.Digital Products Why a regional focus is keyIn South Africa’s mature and predominantly oligopolistic market, competition for limited resources will be fierce, with procuring teams typically awarding opportunities to larger and more established organisations. For smaller enterprises, this creates a tough environment where the odds of breaking through are slim. The larger players are often seen as “safe bets” for procurement, suggesting smaller companies will need to go the extra mile to prove themselves and avoid costly mistakes to stand a chance over the longer-term. Given this context, many SMEs face significant barriers to growth domestically. In contrast, the SADC region offers a more favourable landscape for expansion. But this comes with problems, including differing regulations, business environments and socio-cultural dynamics. Setting up in a new country involves significant costs, and mistakes in regional expansion can jeopardise not only the venture abroad but the company’s operations in its home market as well. For this reason, collaboration with local partners in target markets is crucial.Partnering with a local enterprise can provide a South African business with vital knowledge, networks and trust within the host market. By teaming up with a host nation local partner, a South African SME signals its long-term commitment to the region and creates mutually beneficial relationships that support both businesses’ success. But partnerships should be approached with care and thorough due diligence. Assessing the prospective partner’s track record and gathering referrals from trusted sources can mitigate such risks. It is also essential to carry out commercial, legal, and financial checks to ensure a sound foundation for collaboration.Financing regional expansion is another critical challenge. While SADC has yet to establish itself as a cohesive trading bloc, making regional funding options limited, donor agencies currently fill part of the financing gap. But donor funding is finite and cannot support widespread growth. The SMEs seeking to scale up must look to development financiers, despite most of these institutions preferring to usually lend to larger, established companies with proven financial stability. For smaller businesses, gaining access to capital for regional expansion requires presenting a compelling case for commercial viability. Companies must demonstrate solid revenues, profitability and the ability to repay loans. Additionally, securing guarantees from

home markets can be complex, leading some businesses to seek funding within each country they plan to expand into. As a result, local partnerships will again be beneficial here due to them providing some of the local credibility needed to secure financing from host country banks or co-financing arrangements between regional and South African lenders.When expanding regionally, SMEs should focus on their core strengths and adjust only where necessary. Trying to diversify too much in unfamiliar markets can lead to failure. Instead, businesses should leverage their existing success while tailoring their approach to local market nuances. For example, a refrigerator manufacturer looking to expand into a regional market where most consumers are weekly wage earners might adjust their product mix to offer more units at affordable price points for these consumers. This adjustment ensures the company stays true to its core business model while catering to local market conditions.Digital Products Sectors with regional growth potentialGiven the SADC’s diverse economic landscape, several sectors offer significant growth opportunities for South Africa’s scaling businesses. These include:Agriculture and agro-processing: SADC countries are heavily reliant on agriculture, and there is significant potential to introduce and progress modern farming techniques, equipment, and agro-processing capabilities. South Africa’s established agribusiness expertise can be leveraged to build scalable ventures across the region, where food security and value-addition are priority areas.Renewable energy: With many SADC countries facing energy shortages, the renewable energy sector provides the needed recourse. Scaling South African businesses can, therefore, provide solar, wind, and other renewable energy solutions regionally, benefiting from lower production and import costs and favourable regulatory frameworks across some SADC countries.Light manufacturing and distribution: Manufacturing capabilities in South Africa can be used to produce goods that can be distributed across the region. By setting up local distribution hubs and manufacturing centres in neighbouring countries, companies can cut costs and serve regional markets more efficiently.Retail and digital services: As mobile and internet penetration rises across the SADC, digital services, particularly fintech, e-commerce and logistics present significant opportunities. South African companies can offer scalable digital platforms that cater to regional consumers and businesses, expanding their reach beyond the local market.Based on the above, focusing on regional opportunities in the SADC presents a viable pathway for scaling South African SMEs facing a depressed local economy. Key to success will be strategic partnerships, securing adequate funding and remaining committed to core strengths while adapting to local market demands. As SMEs navigate these opportunities, learning from larger enterprises and following a carefully planned regional strategy will ensure sustained, long-term success.James Maposa is the managing director at Birguid.“The SADC offers potential for growth across various sectors by leveraging South Africa’s strengths in agriculture, energy, manufacturing and digital services…”Source Link: https://mg.co.za/thought-leader/2024-09-10-think-local-and-regional-to-sustain-scaling-south-african-enterprise-growth/ http://109.70.148.72/~merchant29/6network/wp-content/uploads/2024/09/stock-photo-think-global-act-local-symbol-torn-orange-paper-with-words-think-global-act-local-beauti.jpeg Think local and regional to sustain scaling South African enterprise growth - Journal Today Web - #GLOBAL BLOGGER - #GLOBAL

[formidablecompanynews]

Think local and regional to sustain scaling South African enterprise growth - Journal Today Web https://www.merchant-business.com/think-local-and-regional-to-sustain-scaling-south-african-enterprise-growth/?feed_id=197719&_unique_id=66e38544cd59a #GLOBAL - BLOGGER BLOGGER With many SADC countries facing energy shortages, the renewable energy sector provides the needed recourse. Scaling South African businesses can, therefore, provide solar, wind, and other renewable energy solutions regionallySouth Africa’s economy grew at a modest annual average rate of 0.3% to 2% from 2021 to 2023. In contrast, the Southern African Development Community’s (SADC’s) economy expanded at a faster pace, with average growth rates ranging from 2.5% to 4%, according to the World Bank, International Monetary Fund (IMF), and United Nations. Leading SADC economies included Botswana, Mozambique, Zambia and Tanzania, experienced more robust growth, ranging between 3.5% and 6%. Other countries worth noting included Angola (which grew by between 3% and 4%), and Malawi (about 4% annually). Given these figures, a regional approach offers greater growth potential for South African businesses, particularly small and medium-sized enterprises (SMEs) looking to scale in the next three to five years. As the South African domestic market remains highly competitive and dominated by larger, more established enterprises, the SADC region presents untapped opportunities for expanding businesses to grow sustainably.Digital Products Why a regional focus is keyIn South Africa’s mature and predominantly oligopolistic market, competition for limited resources will be fierce, with procuring teams typically awarding opportunities to larger and more established organisations. For smaller enterprises, this creates a tough environment where the odds of breaking through are slim. The larger players are often seen as “safe bets” for procurement, suggesting smaller companies will need to go the extra mile to prove themselves and avoid costly mistakes to stand a chance over the longer-term. Given this context, many SMEs face significant barriers to growth domestically. In contrast, the SADC region offers a more favourable landscape for expansion. But this comes with problems, including differing regulations, business environments and socio-cultural dynamics. Setting up in a new country involves significant costs, and mistakes in regional expansion can jeopardise not only the venture abroad but the company’s operations in its home market as well. For this reason, collaboration with local partners in target markets is crucial.Partnering with a local enterprise can provide a South African business with vital knowledge, networks and trust within the host market. By teaming up with a host nation local partner, a South African SME signals its long-term commitment to the region and creates mutually beneficial relationships that support both businesses’ success. But partnerships should be approached with care and thorough due diligence. Assessing the prospective partner’s track record and gathering referrals from trusted sources can mitigate such risks. It is also essential to carry out commercial, legal, and financial checks to ensure a sound foundation for collaboration.Financing regional expansion is another critical challenge. While SADC has yet to establish itself as a cohesive trading bloc, making regional funding options limited, donor agencies currently fill part of the financing gap. But donor funding is finite and cannot support widespread growth. The SMEs seeking to scale up must look to development financiers, despite most of these institutions preferring to usually lend to larger, established companies with proven financial stability. For smaller businesses, gaining access to capital for regional expansion requires presenting a compelling case for commercial viability. Companies must demonstrate solid revenues, profitability and the ability to repay loans. Additionally, securing

guarantees from home markets can be complex, leading some businesses to seek funding within each country they plan to expand into. As a result, local partnerships will again be beneficial here due to them providing some of the local credibility needed to secure financing from host country banks or co-financing arrangements between regional and South African lenders.When expanding regionally, SMEs should focus on their core strengths and adjust only where necessary. Trying to diversify too much in unfamiliar markets can lead to failure. Instead, businesses should leverage their existing success while tailoring their approach to local market nuances. For example, a refrigerator manufacturer looking to expand into a regional market where most consumers are weekly wage earners might adjust their product mix to offer more units at affordable price points for these consumers. This adjustment ensures the company stays true to its core business model while catering to local market conditions.Digital Products Sectors with regional growth potentialGiven the SADC’s diverse economic landscape, several sectors offer significant growth opportunities for South Africa’s scaling businesses. These include:Agriculture and agro-processing: SADC countries are heavily reliant on agriculture, and there is significant potential to introduce and progress modern farming techniques, equipment, and agro-processing capabilities. South Africa’s established agribusiness expertise can be leveraged to build scalable ventures across the region, where food security and value-addition are priority areas.Renewable energy: With many SADC countries facing energy shortages, the renewable energy sector provides the needed recourse. Scaling South African businesses can, therefore, provide solar, wind, and other renewable energy solutions regionally, benefiting from lower production and import costs and favourable regulatory frameworks across some SADC countries.Light manufacturing and distribution: Manufacturing capabilities in South Africa can be used to produce goods that can be distributed across the region. By setting up local distribution hubs and manufacturing centres in neighbouring countries, companies can cut costs and serve regional markets more efficiently.Retail and digital services: As mobile and internet penetration rises across the SADC, digital services, particularly fintech, e-commerce and logistics present significant opportunities. South African companies can offer scalable digital platforms that cater to regional consumers and businesses, expanding their reach beyond the local market.Based on the above, focusing on regional opportunities in the SADC presents a viable pathway for scaling South African SMEs facing a depressed local economy. Key to success will be strategic partnerships, securing adequate funding and remaining committed to core strengths while adapting to local market demands. As SMEs navigate these opportunities, learning from larger enterprises and following a carefully planned regional strategy will ensure sustained, long-term success.James Maposa is the managing director at Birguid.“The SADC offers potential for growth across various sectors by leveraging South Africa’s strengths in agriculture, energy, manufacturing and digital services…”Source Link: https://mg.co.za/thought-leader/2024-09-10-think-local-and-regional-to-sustain-scaling-south-african-enterprise-growth/ http://109.70.148.72/~merchant29/6network/wp-content/uploads/2024/09/stock-photo-think-global-act-local-symbol-torn-orange-paper-with-words-think-global-act-local-beauti.jpeg With many SADC countries facing energy shortages, the renewable energy sector provides the needed recourse. Scaling South African businesses can, therefore, provide solar, wind, and other renewable energy solutions regionally South Africa’s economy grew at a modest annual average rate of 0.3% to 2% from 2021 to 2023. In contrast, the Southern African Development Community’s … Read More

[smartcompanynewsweb]

Think local and regional to sustain scaling South African enterprise growth - Journal Today Web - #GLOBAL https://www.merchant-business.com/think-local-and-regional-to-sustain-scaling-south-african-enterprise-growth/?feed_id=197717&_unique_id=66e3854271c89 With many SADC countries facing energy shortages, the renewable energy sector provides the needed recourse. Scaling South African businesses can, therefore, provide solar, wind, and other renewable energy solutions regionallySouth Africa’s economy grew at a modest annual average rate of 0.3% to 2% from 2021 to 2023. In contrast, the Southern African Development Community’s (SADC’s) economy expanded at a faster pace, with average growth rates ranging from 2.5% to 4%, according to the World Bank, International Monetary Fund (IMF), and United Nations. Leading SADC economies included Botswana, Mozambique, Zambia and Tanzania, experienced more robust growth, ranging between 3.5% and 6%. Other countries worth noting included Angola (which grew by between 3% and 4%), and Malawi (about 4% annually). Given these figures, a regional approach offers greater growth potential for South African businesses, particularly small and medium-sized enterprises (SMEs) looking to scale in the next three to five years. As the South African domestic market remains highly competitive and dominated by larger, more established enterprises, the SADC region presents untapped opportunities for expanding businesses to grow sustainably.Digital Products Why a regional focus is keyIn South Africa’s mature and predominantly oligopolistic market, competition for limited resources will be fierce, with procuring teams typically awarding opportunities to larger and more established organisations. For smaller enterprises, this creates a tough environment where the odds of breaking through are slim. The larger players are often seen as “safe bets” for procurement, suggesting smaller companies will need to go the extra mile to prove themselves and avoid costly mistakes to stand a chance over the longer-term. Given this context, many SMEs face significant barriers to growth domestically. In contrast, the SADC region offers a more favourable landscape for expansion. But this comes with problems, including differing regulations, business environments and socio-cultural dynamics. Setting up in a new country involves significant costs, and mistakes in regional expansion can jeopardise not only the venture abroad but the company’s operations in its home market as well. For this reason, collaboration with local partners in target markets is crucial.Partnering with a local enterprise can provide a South African business with vital knowledge, networks and trust within the host market. By teaming up with a host nation local partner, a South African SME signals its long-term commitment to the region and creates mutually beneficial relationships that support both businesses’ success. But partnerships should be approached with care and thorough due diligence. Assessing the prospective partner’s track record and gathering referrals from trusted sources can mitigate such risks. It is also essential to carry out commercial, legal, and financial checks to ensure a sound foundation for collaboration.Financing regional expansion is another critical challenge. While SADC has yet to establish itself as a cohesive trading bloc, making regional funding options limited, donor agencies currently fill part of the financing gap. But donor funding is finite and cannot support widespread growth. The SMEs seeking to scale up must look to development financiers, despite most of these institutions preferring to usually lend to larger, established companies with proven financial stability. For smaller businesses, gaining access to capital for regional expansion requires presenting a compelling case for commercial viability. Companies must demonstrate solid revenues, profitability and the ability to repay loans. Additionally, securing guarantees from

home markets can be complex, leading some businesses to seek funding within each country they plan to expand into. As a result, local partnerships will again be beneficial here due to them providing some of the local credibility needed to secure financing from host country banks or co-financing arrangements between regional and South African lenders.When expanding regionally, SMEs should focus on their core strengths and adjust only where necessary. Trying to diversify too much in unfamiliar markets can lead to failure. Instead, businesses should leverage their existing success while tailoring their approach to local market nuances. For example, a refrigerator manufacturer looking to expand into a regional market where most consumers are weekly wage earners might adjust their product mix to offer more units at affordable price points for these consumers. This adjustment ensures the company stays true to its core business model while catering to local market conditions.Digital Products Sectors with regional growth potentialGiven the SADC’s diverse economic landscape, several sectors offer significant growth opportunities for South Africa’s scaling businesses. These include:Agriculture and agro-processing: SADC countries are heavily reliant on agriculture, and there is significant potential to introduce and progress modern farming techniques, equipment, and agro-processing capabilities. South Africa’s established agribusiness expertise can be leveraged to build scalable ventures across the region, where food security and value-addition are priority areas.Renewable energy: With many SADC countries facing energy shortages, the renewable energy sector provides the needed recourse. Scaling South African businesses can, therefore, provide solar, wind, and other renewable energy solutions regionally, benefiting from lower production and import costs and favourable regulatory frameworks across some SADC countries.Light manufacturing and distribution: Manufacturing capabilities in South Africa can be used to produce goods that can be distributed across the region. By setting up local distribution hubs and manufacturing centres in neighbouring countries, companies can cut costs and serve regional markets more efficiently.Retail and digital services: As mobile and internet penetration rises across the SADC, digital services, particularly fintech, e-commerce and logistics present significant opportunities. South African companies can offer scalable digital platforms that cater to regional consumers and businesses, expanding their reach beyond the local market.Based on the above, focusing on regional opportunities in the SADC presents a viable pathway for scaling South African SMEs facing a depressed local economy. Key to success will be strategic partnerships, securing adequate funding and remaining committed to core strengths while adapting to local market demands. As SMEs navigate these opportunities, learning from larger enterprises and following a carefully planned regional strategy will ensure sustained, long-term success.James Maposa is the managing director at Birguid.“The SADC offers potential for growth across various sectors by leveraging South Africa’s strengths in agriculture, energy, manufacturing and digital services…”Source Link: https://mg.co.za/thought-leader/2024-09-10-think-local-and-regional-to-sustain-scaling-south-african-enterprise-growth/ http://109.70.148.72/~merchant29/6network/wp-content/uploads/2024/09/stock-photo-think-global-act-local-symbol-torn-orange-paper-with-words-think-global-act-local-beauti.jpeg BLOGGER - #GLOBAL

[rajanmahtanizambia]

The President of Zambia, Hakainde Hichilema, recently made an announcement on the occasion of Africa Day.

[dailynation]

Zambia in US$207.6M for social protection World Bank boost

By NATION REPORTER THE World Bank Group (WBG) has given Zambia US$ 207.6 million for Social Protection Projects with about 1.6 million households expected to benefit from the grant. Dr Situmbeko Musokotwane, the Minister of Finance and National Planning, announced that the expansion of the Social Cash Transfer Program would entail the temporal increase in the number of beneficiary households…

[iamthepulta]

How to Read Economic Statements:

Example: White House Advisor Urges Western Nations to Overlook Risks and Invest in Developing Countries for Critical Minerals

In a panel discussion at the Milken Institute Global Conference in Los Angeles on Monday, Amos Hochstein, White House senior adviser for energy and investment, emphasized the importance of mining projects in countries where Western corporations are hesitant to do business. Hochstein said that these projects are crucial for securing a reliable and sustainable global supply of critical minerals needed for combating climate change and supporting the growth of artificial intelligence.

Mining projects in countries where Western corporations hesitate to do business are often geopolitically unsafe, or physically unsafe. A reliable and sustainable global supply of critical minerals are needed for green energy, but it's interesting he adds in AI.

“We can all live in the capitals and cities around the world and say ‘I don’t want to do business there.’ But what you are really saying is we’re not going to have an energy transition,” Hochstein said. “Because the energy transition is not going to happen if it can only be produced where I live, under my standards.”

Translation: The United States needs to lower its safety, environmental, and ethical standards to mine more. This is not looking good.

The senior adviser warned that without tapping into the mineral resources of nations like the Democratic Republic of Congo and Zambia, the world may not be able to achieve its energy transition goals. He highlighted the need for the United States and its allies to encourage and support mining projects in these countries, even if they have different risk profiles compared to Western standards.

Excuse me. What the fuck. "Different risk profiles?!"

“If you want to invest in, whether it’s Chile, Peru, Ecuador, Mexico, Congo, Zambia, DRC, etc, Angola — these are different profile countries that have different kinds of risks associated with them. And Western finance has basically said we will not be able to absorb this risk,” Hochstein said. Hochstein called for collaboration among the United States, Group of Seven (G7) nations, Australia, South Korea, and Saudi Arabia to unlock capital and back companies willing to take on projects in countries deemed risky to their reputations or assets. He suggested that this capital could flow through US agencies and global institutions like the World Bank and the International Monetary Fund.

Alright. So international money going to an individual 3rd party agency to be passed to "different risk profile countries" with little to no international oversight. This doesn't sound like a massive scam waiting to happen AT ALL.

The White House adviser emphasized the government’s role in incentivizing private capital by taking more risk in the initial work, allowing the private sector to augment it and invest in a diversified, sustainable, and equitable energy transition. Hochstein also stressed the importance of offering countries incentives to improve their communities and quality of life through these collaborations.

THE BALLS ON THIS MAN.

Not only is he recommending that the government create an avenue and absorb risk for massive corporations to ferry money into sensitive countries through a 3rd party agency. But of course they're going to offer these countries incentives to improve their communities and quality of life through the collaborations.

Not suspicious at all. Definitely not colonialist at all.

[companyknowledgenews]

Think local and regional to sustain scaling South African enterprise growth - Notice Important Web https://www.merchant-business.com/think-local-and-regional-to-sustain-scaling-south-african-enterprise-growth/?feed_id=197722&_unique_id=66e38663b7c90 #GLOBAL - BLOGGER BLOGGER With many SADC countries facing energy shortages, the renewable energy sector provides the needed recourse. Scaling South African businesses can, therefore, provide solar, wind, and other renewable energy solutions regionallySouth Africa’s economy grew at a modest annual average rate of 0.3% to 2% from 2021 to 2023. In contrast, the Southern African Development Community’s (SADC’s) economy expanded at a faster pace, with average growth rates ranging from 2.5% to 4%, according to the World Bank, International Monetary Fund (IMF), and United Nations. Leading SADC economies included Botswana, Mozambique, Zambia and Tanzania, experienced more robust growth, ranging between 3.5% and 6%. Other countries worth noting included Angola (which grew by between 3% and 4%), and Malawi (about 4% annually). Given these figures, a regional approach offers greater growth potential for South African businesses, particularly small and medium-sized enterprises (SMEs) looking to scale in the next three to five years. As the South African domestic market remains highly competitive and dominated by larger, more established enterprises, the SADC region presents untapped opportunities for expanding businesses to grow sustainably.Digital Products Why a regional focus is keyIn South Africa’s mature and predominantly oligopolistic market, competition for limited resources will be fierce, with procuring teams typically awarding opportunities to larger and more established organisations. For smaller enterprises, this creates a tough environment where the odds of breaking through are slim. The larger players are often seen as “safe bets” for procurement, suggesting smaller companies will need to go the extra mile to prove themselves and avoid costly mistakes to stand a chance over the longer-term. Given this context, many SMEs face significant barriers to growth domestically. In contrast, the SADC region offers a more favourable landscape for expansion. But this comes with problems, including differing regulations, business environments and socio-cultural dynamics. Setting up in a new country involves significant costs, and mistakes in regional expansion can jeopardise not only the venture abroad but the company’s operations in its home market as well. For this reason, collaboration with local partners in target markets is crucial.Partnering with a local enterprise can provide a South African business with vital knowledge, networks and trust within the host market. By teaming up with a host nation local partner, a South African SME signals its long-term commitment to the region and creates mutually beneficial relationships that support both businesses’ success. But partnerships should be approached with care and thorough due diligence. Assessing the prospective partner’s track record and gathering referrals from trusted sources can mitigate such risks. It is also essential to carry out commercial, legal, and financial checks to ensure a sound foundation for collaboration.Financing regional expansion is another critical challenge. While SADC has yet to establish itself as a cohesive trading bloc, making regional funding options limited, donor agencies currently fill part of the financing gap. But donor funding is finite and cannot support widespread growth. The SMEs seeking to scale up must look to development financiers, despite most of these institutions preferring to usually lend to larger, established companies with proven financial stability. For smaller businesses, gaining access to capital for regional expansion requires presenting a compelling case for commercial viability. Companies must demonstrate solid revenues, profitability and the ability to repay loans. Additionally, securing

guarantees from home markets can be complex, leading some businesses to seek funding within each country they plan to expand into. As a result, local partnerships will again be beneficial here due to them providing some of the local credibility needed to secure financing from host country banks or co-financing arrangements between regional and South African lenders.When expanding regionally, SMEs should focus on their core strengths and adjust only where necessary. Trying to diversify too much in unfamiliar markets can lead to failure. Instead, businesses should leverage their existing success while tailoring their approach to local market nuances. For example, a refrigerator manufacturer looking to expand into a regional market where most consumers are weekly wage earners might adjust their product mix to offer more units at affordable price points for these consumers. This adjustment ensures the company stays true to its core business model while catering to local market conditions.Digital Products Sectors with regional growth potentialGiven the SADC’s diverse economic landscape, several sectors offer significant growth opportunities for South Africa’s scaling businesses. These include:Agriculture and agro-processing: SADC countries are heavily reliant on agriculture, and there is significant potential to introduce and progress modern farming techniques, equipment, and agro-processing capabilities. South Africa’s established agribusiness expertise can be leveraged to build scalable ventures across the region, where food security and value-addition are priority areas.Renewable energy: With many SADC countries facing energy shortages, the renewable energy sector provides the needed recourse. Scaling South African businesses can, therefore, provide solar, wind, and other renewable energy solutions regionally, benefiting from lower production and import costs and favourable regulatory frameworks across some SADC countries.Light manufacturing and distribution: Manufacturing capabilities in South Africa can be used to produce goods that can be distributed across the region. By setting up local distribution hubs and manufacturing centres in neighbouring countries, companies can cut costs and serve regional markets more efficiently.Retail and digital services: As mobile and internet penetration rises across the SADC, digital services, particularly fintech, e-commerce and logistics present significant opportunities. South African companies can offer scalable digital platforms that cater to regional consumers and businesses, expanding their reach beyond the local market.Based on the above, focusing on regional opportunities in the SADC presents a viable pathway for scaling South African SMEs facing a depressed local economy. Key to success will be strategic partnerships, securing adequate funding and remaining committed to core strengths while adapting to local market demands. As SMEs navigate these opportunities, learning from larger enterprises and following a carefully planned regional strategy will ensure sustained, long-term success.James Maposa is the managing director at Birguid.“The SADC offers potential for growth across various sectors by leveraging South Africa’s strengths in agriculture, energy, manufacturing and digital services…”Source Link: https://mg.co.za/thought-leader/2024-09-10-think-local-and-regional-to-sustain-scaling-south-african-enterprise-growth/ http://109.70.148.72/~merchant29/6network/wp-content/uploads/2024/09/stock-photo-think-global-act-local-symbol-torn-orange-paper-with-words-think-global-act-local-beauti.jpeg With many SADC countries facing energy shortages, the renewable energy sector provides the needed recourse. Scaling South African businesses can, therefore, provide solar, wind, and other renewable energy solutions regionally South Africa’s economy grew at a modest annual average rate of 0.3% to 2% from 2021 to 2023. In contrast, the Southern African Development Community’s … Read More

[bravecompanynews]

Think local and regional to sustain scaling South African enterprise growth - Notice Important Web - #GLOBAL https://www.merchant-business.com/think-local-and-regional-to-sustain-scaling-south-african-enterprise-growth/?feed_id=197720&_unique_id=66e386603b456 With many SADC countries facing energy shortages, the renewable energy sector provides the needed recourse. Scaling South African businesses can, therefore, provide solar, wind, and other renewable energy solutions regionallySouth Africa’s economy grew at a modest annual average rate of 0.3% to 2% from 2021 to 2023. In contrast, the Southern African Development Community’s (SADC’s) economy expanded at a faster pace, with average growth rates ranging from 2.5% to 4%, according to the World Bank, International Monetary Fund (IMF), and United Nations. Leading SADC economies included Botswana, Mozambique, Zambia and Tanzania, experienced more robust growth, ranging between 3.5% and 6%. Other countries worth noting included Angola (which grew by between 3% and 4%), and Malawi (about 4% annually). Given these figures, a regional approach offers greater growth potential for South African businesses, particularly small and medium-sized enterprises (SMEs) looking to scale in the next three to five years. As the South African domestic market remains highly competitive and dominated by larger, more established enterprises, the SADC region presents untapped opportunities for expanding businesses to grow sustainably.Digital Products Why a regional focus is keyIn South Africa’s mature and predominantly oligopolistic market, competition for limited resources will be fierce, with procuring teams typically awarding opportunities to larger and more established organisations. For smaller enterprises, this creates a tough environment where the odds of breaking through are slim. The larger players are often seen as “safe bets” for procurement, suggesting smaller companies will need to go the extra mile to prove themselves and avoid costly mistakes to stand a chance over the longer-term. Given this context, many SMEs face significant barriers to growth domestically. In contrast, the SADC region offers a more favourable landscape for expansion. But this comes with problems, including differing regulations, business environments and socio-cultural dynamics. Setting up in a new country involves significant costs, and mistakes in regional expansion can jeopardise not only the venture abroad but the company’s operations in its home market as well. For this reason, collaboration with local partners in target markets is crucial.Partnering with a local enterprise can provide a South African business with vital knowledge, networks and trust within the host market. By teaming up with a host nation local partner, a South African SME signals its long-term commitment to the region and creates mutually beneficial relationships that support both businesses’ success. But partnerships should be approached with care and thorough due diligence. Assessing the prospective partner’s track record and gathering referrals from trusted sources can mitigate such risks. It is also essential to carry out commercial, legal, and financial checks to ensure a sound foundation for collaboration.Financing regional expansion is another critical challenge. While SADC has yet to establish itself as a cohesive trading bloc, making regional funding options limited, donor agencies currently fill part of the financing gap. But donor funding is finite and cannot support widespread growth. The SMEs seeking to scale up must look to development financiers, despite most of these institutions preferring to usually lend to larger, established companies with proven financial stability. For smaller businesses, gaining access to capital for regional expansion requires presenting a compelling case for commercial viability. Companies must demonstrate solid revenues, profitability and the ability to repay loans. Additionally, securing guarantees

from home markets can be complex, leading some businesses to seek funding within each country they plan to expand into. As a result, local partnerships will again be beneficial here due to them providing some of the local credibility needed to secure financing from host country banks or co-financing arrangements between regional and South African lenders.When expanding regionally, SMEs should focus on their core strengths and adjust only where necessary. Trying to diversify too much in unfamiliar markets can lead to failure. Instead, businesses should leverage their existing success while tailoring their approach to local market nuances. For example, a refrigerator manufacturer looking to expand into a regional market where most consumers are weekly wage earners might adjust their product mix to offer more units at affordable price points for these consumers. This adjustment ensures the company stays true to its core business model while catering to local market conditions.Digital Products Sectors with regional growth potentialGiven the SADC’s diverse economic landscape, several sectors offer significant growth opportunities for South Africa’s scaling businesses. These include:Agriculture and agro-processing: SADC countries are heavily reliant on agriculture, and there is significant potential to introduce and progress modern farming techniques, equipment, and agro-processing capabilities. South Africa’s established agribusiness expertise can be leveraged to build scalable ventures across the region, where food security and value-addition are priority areas.Renewable energy: With many SADC countries facing energy shortages, the renewable energy sector provides the needed recourse. Scaling South African businesses can, therefore, provide solar, wind, and other renewable energy solutions regionally, benefiting from lower production and import costs and favourable regulatory frameworks across some SADC countries.Light manufacturing and distribution: Manufacturing capabilities in South Africa can be used to produce goods that can be distributed across the region. By setting up local distribution hubs and manufacturing centres in neighbouring countries, companies can cut costs and serve regional markets more efficiently.Retail and digital services: As mobile and internet penetration rises across the SADC, digital services, particularly fintech, e-commerce and logistics present significant opportunities. South African companies can offer scalable digital platforms that cater to regional consumers and businesses, expanding their reach beyond the local market.Based on the above, focusing on regional opportunities in the SADC presents a viable pathway for scaling South African SMEs facing a depressed local economy. Key to success will be strategic partnerships, securing adequate funding and remaining committed to core strengths while adapting to local market demands. As SMEs navigate these opportunities, learning from larger enterprises and following a carefully planned regional strategy will ensure sustained, long-term success.James Maposa is the managing director at Birguid.“The SADC offers potential for growth across various sectors by leveraging South Africa’s strengths in agriculture, energy, manufacturing and digital services…”Source Link: https://mg.co.za/thought-leader/2024-09-10-think-local-and-regional-to-sustain-scaling-south-african-enterprise-growth/ http://109.70.148.72/~merchant29/6network/wp-content/uploads/2024/09/stock-photo-think-global-act-local-symbol-torn-orange-paper-with-words-think-global-act-local-beauti.jpeg BLOGGER - #GLOBAL