CALENDER OF EVENTSZimbabwe to host inaugural African

Marketing Summit in 2014

Zimbabwe has won another opportunity to host a high-profile event that is set to bring in more recognition to the country as marketers will host the inaugural African Marketing Summit in the country next year.

The summit which comes hard on the heels of the successful co-hosting of the UNWTO General Assembly in Victoria Falls, will run under the theme “Making Africa a Better Business Giant through Marketing” from March 26-28.

The African Marketing Confederation, the host, is a pan-African body of marketing professionals aiming to spearhead the development of the highest possible marketing standards across Africa.

It recognises that the continent’s unique and varying cultures, languages, standards of education and levels of development require home-grown marketing approaches designed and nurtured by Africans themselves.

The body comprises a membership of partners in six countries including South Africa, Nigeria, Zambia, Kenya, Ghana and Zimbabwe.

AMC secretary-general Gillian Rusike said the hosting of the summit would promote the local marketing industry and the country as a destination.

“Our vision is ambitious and it completely challenges the way in which Africa has been thought of before. We want to provoke Africans marketing professionals to champion the development of Africa through home grown solutions as we better understand our continent than outsiders,” he said.

He added that hosting of the event in Zimbabwe posed a greater challenge for local professionals to prove that they were a cut above the rest in Africa and beyond.

Rusike said besides being able to bring visitors to the country, hosting of such events in the country would facilitate the image building of the nation hence also contributing to national development at large.

Hundreds of delegates from emerging and developed markets are expected to participate, including CEOs, academics, marketing practitioners, government officials, entrepreneurs and world-renowned thinkers, among others from around the world who share a common interest in sustainable development through business as a whole, and through marketing in particular.

The event will also feature leading multinational companies, African marketing institutions, universities, Chambers of Commerce and other bodies.

COMPANY NEWS

Ziscosteel; will the sleeping giant finally awake?

Minister of Industry and Commerce, Mike Bimha says the re-opening of redundant New Zim Steel, formerly, Ziscosteel, is one of his top priorities following his appointment in mid-September.

The giant Redcliff company, was rechristened New Zim Steel after government signed a US$750 million takeover deal with India’s Essar Africa Holdings (Essar).

Essar now effectively owns 54 percent of the derelict steel producer, whose re-opening since closure over five years ago, has been a matter of false starts in the past two years.

The deal between Essar and government was penned in 2011, during the lifespan of the coalition government, with Professor Welshman Ncube, the then Industry and Commerce Minister having taken a lead role in facilitating the takeover.

But operationalization of the deal took what many analysts describe as a political turn, despite cabinet and President Robert Mugabe having officiated at the event when pen was to put to paper between government and Essar on transfer of shareholding.

Allocation of mineral claims, which had presumably been handed over to Essar when it acquired the stake became the major issue, stalling the operationalization of the deal.

Ncube, a Movement for Democratic Change minister failed to convince his then Mines counterpart, Obert Mpofu from Zanu PF, to hand over the claims as presumably agreed with Essar.

The Mines and Mining Development ministry, it appeared seemed to argue that Ncube had sold off Ziscosteel and the claims the company owned for a song and wanted Essar to separately pay for the revalued mineral resource.

Disagreements on this matter, have to date stalled the much awaited re-opening of New Zim Steel.

General elections, finally held on July 31 and disputably won by Zanu PF, also further delayed finalisation of the matter as politicians, who have the final say on the deal, hit the campaign trail.

But Bimha, once Ncube’s deputy and has taken over the reigns told the Business Star, progress in ensuring the matter is finalised will now be fast tracked now that President Mugabe has set up a new government.

“With the coming of a new government, we will ensure that progress is accelerated. There have been a lot of meeting

between Essar and Zisco management,” the new industry minister said.

“A lot of progress has been made and the coming in of a new government will ensure that there is speed in terms of the execution (of the deal).”

Bimha also believes that the fact that the new cabinet is entirely made up of members of the ruling party, Zanu PF, other than coalition, will ensure that there is smooth facilitation in ensuring that the obstacles standing in the way of operationalizing the deal are addressed.

“The mere fact of having an entire cabinet from Zanu PF will ensure that communication is faster and accessibility is guaranteed and I am sure that we all have that a common agenda to ensure that what we promised the electorate is realised,” he said.

Walter Chidhakwa now heads the mines ministry.

To ensure smooth facilitation of the deal, the Office of the President and Cabinet is now chairing a committee, comprised officials from the ministries of mines and industry as well as from Essar.

The delay in ensuring New Zim Steel comes back to life has not been without consequences for the country as an investment hungry destination, the steel industry as well as the workers and their families.

The New Zim Steel deal is arguably one of the biggest investment deals that Zimbabwe managed to clinch at a time when the international investor community largely shunned the country.

Government’s continued insistence on localisation laws which force foreigners to cede at least 51 percent shareholding to locals made the investment climate unattractive.

Economists however say that government’s bungling of the New Zim Steel did not do the economy any good in the eyes of potential investors.

“For such a big investment of close to a billion dollars, government was supposed to handle this deal with great care,” said one economist.

“Taking years to finalise the deal when you are trying to attract other investors to invest in the country will just not work.”

The Engineering, Iron and Steel Association says delays in re-opening the firm had seen the steel industry struggling to boost its capacity which is hovering below 20 percent, with 15 companies in the sector having been placed under liquidation.

Workers have also borne the brunt of the government’s ineffective handling the deal.

At signing of the deal, Essar had committed to retaining the 3 500 workers who were employed by Ziscosteel. Further investments would have seen the company employing 3 500 workers.

The company would also have paid the salaries debt, which employees were owed by Ziscosteel.

Bimha says discussions on assisting the workers with among others school fees for their children have been going on in the background.

But the workers, who have been made redundant for too long, say their livelihood has turned into a nightmare due to failure to re-open the company.

The workers, who have not been paid for months and are owed in excess of $15 million are struggling to make ends meet at a time when the cost of living is on an increase.

“Since 2010, no one has talked or shown concern about the lives of the workers,” says Ziscosteel artisan’s union chairperson Obert Shokombisi.

“There has been great talk about the deal and mining rights but nothing about the human resources.

And without funding to bank on, New Zim Steel has struggled not only to pay the workers but also owes other stakeholders including utilities over $120 million.

Industrialists say finalization of the deal therefore remains critical not only of the workers and the town of Redcliff in particular which has been turned into a ghost town, but the economy as a whole.

New Zim Steel has the potential not only to earn the economy the much needed foreign currency through exports but to also serve as local companies will no longer need to import steel.

2013 First Half Tourism

Statistics Highlights

4.1 Global Tourism Overview

According to the latest figures availed by the UNWTO for the first four months of the year (January to April 2013), international tourist arrivals went up by 4% compared to the same period in 2012. This was an increase from 287 million to 298 million which reflects a generally robust tourism sector, despite the on-going economic challenges in some parts of the world.

The UNWTO reports positive growth in all regions, with the strongest growth in Asia and the Pacific (6.3%), Europe (4.9%) the Middle East (4.7%), and weaker growth in the Americas (0.5%) and Africa (1.8%).

By sub-region, South-East Asia (12%) and Central and Eastern Europe (9%) continued to be the star performers while in Africa, the sub-Sahara region registered a 3% increase against a 0.1% decline for North Africa.

4.2 Overview of Economic Performance in Zimbabwe Economic

Growth

The economic growth rate for Zimbabwe is estimated to reach 5% by the year end, on the backdrop of expected positive performance in the mining and agricultural sectors. This estimated growth is a 0.6 percentage point increase from the annual economic growth of 4.4% in 2012. Tourism is a sensitive sector which thrives well when the economy is growing. A growing economy has a positive impact on disposable income among locals which is a positive stimulant for domestic tourism.

Inflation As of June 2013, the country’s year-on-year inflation, as measured by the Consumer Price Index (CPI), increased marginally by 1.87%, according to figures released by the Zimbabwe National Statistics Agency (ZimStat). The annual inflation is projected to reach 2.9% by December 2013. This low rate of inflation is conducive for economic growth since experts point out that inflation should be maintained between 1% and 5% per annum for

optimal economic growth.

However, a ripple effect may still be felt in the economy, due to the 5cent per litre increase on excise duty on petrol and diesel for the period March to December 2013.

Interest Rates

As a result of the prevailing liquidity constraints attributable to limited foreign direct investments as well as a perennial trade deficit, credit remains very expensive in the country with financial institutions charging, on average, annual interest rates of 10% for corporates and 14, 5% for individuals. The country badly needs to revamp its tired product by carrying out refurbishment of existing tourism facilities and investing in new facilities. However, these high interest rates continue to inhibit access to finance, thus restricting development of the tourism sector.

4.3 Tourist Arrivals into

Zimbabwe - First Quarter 2013

Preliminary results of tourist arrivals into the world’s regions for the first Half of 2013 show Africa, Europe and

Asia recording growth while Oceania, the Americas and the Middle East declined.

Zimbabwe recorded a 12% increase in tourist arrivals in the first half of 2013, standing at 859 995 as compared to 767 393 during the same period in 2012 (see Annexure A). This growth is clearly testimony of the country’s improved destination image.

The ever increasing regional trade and commerce also contributed immensely to this growth in arrivals, through the activities of business tourists, cross border traders and

transiting tourists, mostly drawn from DRC, Tanzania, Malawi, Mozambique and Zambia.

The second quarter of 2013 marked the build up to the harmonized elections. Tourist arrivals usually tend to decline towards, during and after an election. Surprisingly, the elections had little effect on tourist arrivals with a few exceptions such as Botswana, Argentina, USA, Singapore, Germany, Italy and Israel whose arrivals rose in the first quarter, but, suddenly declined in the second quarter.

The market share for the overseas arrivals into Zimbabwe stood at 13% (compared to the market share for African arrivals, at 87%). This share went up 1 percentage point this year from 12% in 2012.

The combined arrivals from all overseas markets rose by 20% this year compared to last year, on the backdrop of exceptional increases from Europe (26%) and Asia (60%) with UK, France and China specifically registering outstanding performances.

Mainland Africa had an 11% increase in arrivals having risen from 675 727 in 2012 to 749 301, with South Africa, Mozambique and Zambia contributing over 70% of all arrivals from this region.

The Americas declined by 3%, having fallen from 24 462 in 2012 to 23 764 on the background of a 6% decline in USA arrivals.

Asia exhibited a sterling performance having recorded a 60% growth in arrivals into

Zimbabwe. In Asia, China is rapidly becoming the major engine driving global tourism, (having generated 83 million trips to all parts of the world in 2012) and continues to grow. Arrivals from China grew by about three times as much in 2013 as in 2012, yielding a whopping 310% growth.

Europe recorded a 26% growth in arrivals with United Kingdom (72%) and France (76%) being the star performers from this region. However, the major markets of Germany and Italy registered decline, without which they could have otherwise fueled further growth of European arrivals to Zimbabwe.

The Middle East declined by 7%, with the major market of with Israel tumbling by 9% during the period under review.

Oceania grew by 8% buoyed by Australia which is the only market with positive results from this region, whilst New Zealand recorded a 37% decline.

4.4 Hotel Occupancy Statistics

In the first half of this year, average hotel room occupancy levels rose by 2 percentage points to stand at 41%, from 39% in 2012. On the other hand the average hotel bed occupancy levels, contracted by 5 percentage points from 37% in 2012 to 32% this year.

Hotel Room Occupancies: 1st Half 2013 / 1st Half 2012

Harare and Masvingo recorded significant decline in occupancies and research has shown that this was largely due to reduced conferencing activities during the first half

of 2013 as compared to 2012 whose whole length had constitution making activities which had spilled over from 2011.

Notable increases were recorded in Victoria Falls and Midlands along with Hwange, Nyanga and Bulawayo which had modest increases. Increases in Victoria Falls during the first half of the year, were to a certain caused by the clients rescheduling their intended bookings to earlier in the year, so as to avoid the “hustle and bustle” connected with UNWTO General Assembly in the second half of the year. It is also worth noting that the improvement in connectivity resulting from the

resumption of Air Zimbabwe flights between Victoria Falls and Harare/Johannesburg is another major factor leading to the improved performance of the resort during the first half of the year.

Midlands has been very suppressed for a long time, however as a result of hosting increasing conferences and the increasing popularity of the Midlands Agricultural Show, occupancies have seen an increase in that region. One of the factors that gives the region favourable occupancy percentages is the general lack of capacity as the region only has 314 rooms causing little actual increase to seem huge percentage wise.

Harare and Masvingo recorded significant decline in occupancies and research has shown that this was largely due to reduced conferencing activities during the first half of 2013 as compared to 2012 whose whole length had constitution making activities which had spilled over from 2011.

Notable increases were recorded in Victoria Falls and Midlands along with Hwange, Nyanga and Bulawayo which had modest increases. Increases in Victoria Falls during the first half of the year, were to a certain caused by the clients rescheduling their intended bookings to earlier in the year, so as to avoid the “hustle and bustle” connected with UNWTO General Assembly in the second half of the year. It

is also worth noting that the improvement in connectivity resulting from the resumption of Air Zimbabwe flights between Victoria Falls and Harare/Johannesburg is another major factor leading to the improved performance of the resort during the first half of the year.

Midlands has been very suppressed for a long time, however as a result of hosting increasing conferences and the increasing popularity of the Midlands Agricultural Show, occupancies have seen an increase in that region. One of the factors that gives the region favourable occupancy percentages is the general lack of capacity as the region only has 314 rooms

causing little actual increase percentage wise.

The national average hotel bed occupancy level fell by 5 percentage points (despite having increased in room occupancy levels) with the greatest decline being registered by Masvingo (-28 percentage points) . According to tourism operators in this region, this is largely due to decreased conferencing activities during the period.

Victoria Falls experienced the highest growth in bed occupancies (+23 percentage points) and a significant growth in room occupancies (+21 percentage points) and Bulawayo experienced a marginal decline in bed occupancies (-2 percentage points) while at the same time recording an increase in room occupancies (+3 percentage points), signaling a possible increase in business rather than leisure clientele in these areas.

4.5 Tourism Prospects for 2013

UNWTO forecasts continued growth in international tourism in 2013 although at a rather slower rate than previously envisaged. Arrivals are expected to increase by 3% - 4% according to long term projections by the international board. With the rejuvenation of the country’s major markets, arrivals into Zimbabwe are expected to ride on this positive trend throughout the year. This is so especially considering the current performance of markets like China, United Kingdom, Japan, South Korea and France. Positive trends in 2013 are also expected to hinge on the improved accessibility into the country, a stable post election environment and the probable interim after-effects of hosting UNWTO General Assembly.

Africa provides highest growth opportunities for broadband

Mobile broadband is the fastest growing technology in human history, according to the 2013 edition of the ITU’s State of Broadband Report which was released on 21 September.

Released in New York at the 8th meeting of the Broadband Commission for Digital Development, the report reveals that mobile broadband subscriptions, which allow users to access the web via smartphones, tablets and WiFi-connected laptops, are growing at a rate of 30% per year. By the end of 2013 there will be more than three times as many mobile broadband connections as there are conventional fixed broadband subscriptions, read the acc ompanying press release. The State of Broadband is a unique global snapshot of broadband network access and affordability, with country-by country data measuring broadband access against the four key targets set by the 60 members of the Broadband Commission in 2011.

The Republic of Korea continues to have the world’s highest household broadband penetration at over 97%. Switzerland leads the world in fixed broadband subscriptions per capita, at over 40%. By comparison, the US ranks 24th in terms of household broadband penetration, and 20th in the world for fixed broadband subscriptions per capita, just behind Finland and ahead of Japan. In terms of internet use, there are now more than 70 countries where over 50% of the population is online. The top ten countries for internet use are all located in Europe, with the exception of New Zealand (8th) and Qatar (10th).

Significantly, notes the report, by the end of 2013, the number of broadband subscriptions in the developing world will exceed the number of broadband subscriptions in the developed world for the first time, in both fixed and mobile, respectively. Much of this fresh growth is located in emerging markets - Budde Communications (2013) notes that Africa is the region with the largest remaining growth potential in the world, and estimates that the market in telecom services

will grow by 1.5 billion people, almost half the remaining market worldwide, by 2050. We thus expect the continent to continue to see increased investment in the ICT sector, as companies look to exploit the obvious opportunities.

- imara

Africa’s technology and business leaders have in their hands an unprecedented opportunity to surpass their global counterparts.

If we can harness the vast and growing sources of information known as “Big Data”, members of the C-suite – particularly Chief Marketing Officers (CMOs) and Chief Information Officers (CIOs), who increasingly share the responsibility for growth and innovation – stand to not only significantly boost our organisations’ bottom lines, but catapult our brands into positions of global leadership and best practice.

But to do so requires uniquely African approaches to the selection and use of Big Data which align with our continent’s fast-evolving socio-economic and technological landscape.

The currency of dataWhat is Big Data? The Internet and computing technologies have, particularly in the past decade, resulted in exponential growth in digital information which exists in the world – in fact, more than 90 per cent of data currently in existence was created in the past two years.

We call this abundance of information “Big Data”, and

it has seismic implications for consumers, technologists, and business leaders alike.

Analysis of Big Data can identify trends, weaknesses, and opportunities which would be otherwise invisible to human observation – as long as the right tools and strategies are in place to convert these stockpiles of information into meaningful insights.

Many commentators are calling data the “next commodity”: like natural resources traditionally, those who can access and refine it will have increasingly clear advantages and growth potential over those who don’t.

CMOs and CIOs will need to work together to turn Big Data’s potential into tangible insights and improvements. Alliances between marketers and IT staff are already becoming more frequent, and for good reason.

They both count innovation as a major part of their portfolios; they share common goals around improving quality of services; and their efforts are held responsible for core organisational growth – or decline.

Big Data has relevance to all these areas and the complementary skills of the CMO and CIO are essential to its effective use.

Organisations the world over are taking steps to build Big Data into how they make decisions, invest, and even safeguard the future of entire populations.

But retrofitting existing

technologies to manage and analyse Big Data is typically a prolonged and technically intensive task. By incorporating Big Data at the very foundation of their investment in technology and strategy, African CMOs and CIOs have the chance to get ahead of their global counterparts in their ability to make smarter, faster decisions.

Redefining best-practiceFor it to be effective, Africa needs to approach Big Data differently to the rest of the world. This is because Africa’s technological and infrastructural environments continue to diverge from those of other continents.

Mobile devices, for example, are the primary, often sole means of Internet access for a burgeoning percentage of the population.

That has already had significant impact on the evolution of e-commerce in Africa, where mobile-centric online marketplaces and peer-to-peer networks are seeing rapid success and growth – not the big e-tailing shops that dominate online trades in the United States or Europe.

That, in turn, will define the nature of Big Data in Africa, from the source (predominantly mobile devices and transactions) to what it is used for (building new marketplace platforms, or identifying gaps in current mobile payment channels).

Tapping mobile growthAfrican CMOs and CIOs have the

distinct advantage of the many entrepreneurs from the burgeoning IT ecosystem of start-ups. These businesses are developing innovative means of tapping this growing mobile-based business landscape.

By adopting home-grown innovations from micro-payments, to retail supply chains and banking for the unbanked and using these to expand locally and globally, smart African CMOs and CIOs who work together will be able to more efficiently and effectively target consumers and deliver beyond their expectations.

That is not to say African business leaders cannot learn from their overseas counterparts when it comes to Big Data.

Take, for example, Nairobi’s latest efforts to reduce congestion and augment public transport services using Big Data and analytics. IBM’s approach will collect and analyse data from the Kenyan capital’s transport grid to predict and identify delays, automatically reroute transport to optimal pathways, and notify commuters via live SMS and mobile app updates – all based on a similar approach developed by IBM for Singapore’s transport network.

However, Kenya’s infrastructure lacks the coverage of sensors and monitoring infrastructure which the Singaporean system relies on for success.

IBM adapted the Singapore solution by drawing on

algorithms and mobile phone data, allowing the base platform to deliver equal – if not better –results. By taking advantage of these opportunities, rather than approaching them as roadblocks, businesses can turn Big Data to its most powerful applications.

A smarter marketplaceThese applications hold great promise for how CMOs and CIOs create more efficient marketplaces and seamless transactions.

Many of Africa’s most promising start-ups are turning global notions of e-commerce on their head, often through the canny use of mobile devices to form networks where buyers, sellers, and advice-givers can share both opportunities and information in a more fluid, physically unconstrained manner.

The same approaches hold promise for much larger companies and even governments. For example, creating more resilient networks for sharing public-service information is in practice not so different from developing online marketplaces for trading goods.

Big Data and analytics have the potential to enrich these networks with insight – into wherever inefficiencies and market failures are occurring, and how to potentially fix these.

Combined, they can match buyers and sellers more efficiently, or allow marketers to deliver more accurate recommendations for

future purchases.

Predicting behaviours They can enable marketers to predict consumer behaviors and deliver messages with more timeliness and resonance than otherwise possible – with potentially life-saving results if applied to public-service announcements in industries like government and healthcare.

Only by joining their expertise in behavior and technology can CMOs and CIOs use Big Data to power growth and innovation in their organisations.

And only with approaches that leverage the nuances of our cities and cultures, rather than simply adhering to a “one-size-fits-all” global model, can Africa’s businesses and governments excel at Big Data – so much so that the rest of the world may soon turn to them for guidance.

For that to happen, though, Africa’s top leaders need to put Big Data on their agenda as a key opportunity.

Written by Kidane Z. Haile, IBM Software Group Director of Information Management Labs, Africa

BAT among top fiscus contributors in Zim

Listed cigarette-maker British American Tobacco Zimbabwe Holdings Limited (BAT Zimbabwe) has been ranked among the top contributors to the fiscus by the Zimbabwe Revenue Authority (Zimra).

The group - which in 2012 contributed over $28,6 million in excise duty, value added tax, and other tax payments to the fiscus - was ranked third in the Large Clients Office VAT payments category.

Zimra recently hosted the second edition of its annual Taxpayer Appreciation Day, created to recognise the best taxpayers and the significant role that tax revenue plays in Zimbabwe’s economy.

In 2011, BAT Zimbabwe was also awarded by Zimra after coming second in the excise duty category.

Lovemore Manatsa, BAT Zimbabwe’s managing director, said the latest award “recognises the company’s contribution and commitment to the Zimbabwean economy.”

“BAT Zimbabwe supports fiscal policies that stimulate growth of the industry, encourage fair competition, investment and entrepreneurial activity,” he said.

Manatsa said the sale of BAT Zimbabwe’s products provides a key source of business for small to medium enterprises and thousands of formal, as well as informal traders around the country, generating excise revenue that is channelled to the fiscus.

“BAT Zimbabwe will continue to invest and participate in the economy of Zimbabwe through empowerment initiatives such as these which we believe are important to the continued growth of our business and the economy as a whole,” he added. – Staff Writer.

COVER STORY

Imara CEO to head Global Alliance Partners

Mark Tunmer

The chief executive officer of African investment banking group Imara, Mark Tunmer will head the Global Alliance Partners (GAP), an international network of financial service companies following his election as chairman.According to Imara, GAP is “a Hong Kong-registered network of international, mid-market financial services companies dedicated to providing its client base with local service and expertise coupled with international reach and access in private equity, corporate fund raising, stock brokering and fund management”.Imara explained that GAP was dedicated to fostering worldwide investment and business growth. Registered in Botswana Imara provides investment banking, asset management and stockbroking services across sub-Saharan Africa. Harare-based Tunmer accepted his election as chairman of the alliance which has collectively

facilitated transactions in 57 countries worth nearly $32 billion describing it as an honour.He said the election showed the rising importance of Africa on the global economic and financial scene.“It is also a strong signal that Africa features high on the agenda of leading players active in areas such as mergers and acquisitions, private equity transactions, corporate fund raising and asset management,” Tunmer said. He said that it was heartening that GAP with its vast reach was giving increasing attention to opportunities in Africa. Tunmer said the election was an important opportunity to market Africa to the world. “During my tenure as GAP chairman I will do everything I can to showcase new growth opportunities across our continent. Immense potential is evident. It’s vital that Africa capitalises on it,” he said. Tunmer is also the group’s head of securities and country head for Malawi.“He has more than 25 years of African stockbroking and advisory experience and has been instrumental in raising more than $450 million in capital markets across sub-Saharan Africa through listings, privatisation and rights issues,” Imara said in a statement.The firm said that Tunmer had in the past acted as an advisor

on the setting up of stock exchanges in Botswana, Malawi and Swaziland and that his experience would help him in his duties leading the huge network “All partners are fully licensed and together have completed over 1,100 corporate transactions in 57 countries. GAP manages or advises in excess of $6,5 billion in individual and institutional funds,” Imara said.GAP is involved in all levels of the world economy.“Its key role is to bridge the gap between investment opportunities in leading, emerging and frontier markets, and key sources of investment risk capital,” Imara explained.In its annual report for 2013 Imara said that the African continent remained a favourable investment destination.“The Board continues to hold the view that African capital markets remain attractive to investors, offering upside potential for the Group,” Imara said.The group said its concern was on the volatility of world markets and their potential to impact negatively on future results.Imara said Zimbabwe was an important centre for its business and added that it was too early to gauge the effects of the re-election of President Robert Mugabe and Zanu (PF).“It is still too early to assess what impact future economic and investment policies in Zimbabwe may have on the Imara Group. Short term fluctuations do not

overly concern the Board which continues to see positive opportunities for Imara’s business in Zimbabwe over the medium to long term,” Imara said.For the financial year ended April 30 2013 Imara pointed out that the performance of the group was generally disappointing despite some highlights.

“Market conditions remained difficult although there was an increase in liquidity, while most markets registered positive gains. The performance of the African markets excluding South Africa, was better with eleven closing the year under review in positive territory in US$ terms,” Imara said.The group recorded a mixed bag of results on the continent.“Of the larger markets Nigeria was up 49 percent, Kenya 34 percent and Zimbabwe 47 percent while Egypt was down 8 percent and Morocco 12 percent.

“As usual the Group performed better in the

second half against a continuing slowdown in China and the Eurozone problems although on the positive side there are signs of a turnaround in the United States of America,” Imara said.Imara said it anticipated that the continued growth in interest in Africa would contribute to greater inflows, which should in turn return the group to profit in the year ahead. The group recently said the re-election of President Mugabe had led to a sell-off on the stock market but at the same time created a value opportunity for others. This created a record month for trading volumes.

These volumes in the aftermath of the elections were driven almost exclusively by foreigners who according to Imara were aware of the volatility of Zimbabwean politics.Equity markets in sub-Saharan Africa have reached healthy levels and Zimbabwe due to the problems it has suffered has some catching up to do, so there is long-term growth potential, Imara explained.

Telecel scoops various excellence awards

Telecel Zimbabwe was last week, for the second year running, presented with the Best Call Centre Award at the Contact Centre Association of Zimbabwe (CCAZ) Customer Service Excellence awards ceremony.

Multichoice was the first runner-up for the award, while NetOne was second runner-up.

Telecel was also named first runner-up for the Overall Most Customer Focused Organisation in the telecommunications sector, while Telecel Zimbabwe customer operations director Zodwa Chinyenze was named first runner-up for the Most Customer Focused Executive of the Year in the Private Sector Award.

The previous day Telecel Zimbabwe had scooped two awards at the Marketers Association of Zimbabwe Exceptional Marketing Awards, where the company won the Exceptional Product of the Year Award for its Telecel Red product, while its marketing director, Octivious Kahiya, was named Marketer of the Year.

The Marketers Association of Zimbabwe awards are held every year to celebrate marketing excellence. They are meant to recognise marketing programmes and the people behind them that display innovation and creativity and are key for change.

The Exceptional Product of the

Year Award is given to a company whose product or service is a totally new idea in Zimbabwe. The new product is supposed to have market dominance over other new products launched during the same period and demonstrate overall marketing excellence and innovation.

Telecel Red was introduced early this year. It is the first product of its kind in Zimbabwe. It is a new pricing concept that commits the customer to payment of a fixed monthly subscription that enables him/her to make local calls, access local data and send local text messages worth up to five times the cost of the subscription.

The product comes with three plans that subscribers can choose from which are Telecel Red 30, Telecel Red 60 and Telecel Red 150.

Telecel Red 30 includes unlimited calls to a frequently used Telecel number. Telecel Red 60 includes unlimited calls to any Telecel number. Telecel Red 150 allows unlimited calls to any local phone network, as well as unlimited local text calls and data.

Each of the three plans come with two contract options. There is a post-paid option which allows for usage outside of the package provisions, such as for international usage and where the plan’s local usage limit has been reached, on credit up to a set limit with the additional cost billed at the end of the billing period.

The flexible option combines the advantages of a contract with

those of recharging airtime using scratch cards. It allows customers to use a scratch recharge card for usage outside of the package, such as international usage and usage once the cost of local calls, text messages and data has reached the monthly limit.

Mr Kahiya said Telecel’s winning of the Exceptional Product of the Year Award demonstrated the company’s efforts to bring value to the market and to its subscribers.

Mrs Chinyenze, who heads Telecel’s customer service department, said Telecel’s customer focus was key to its winning of both the marketing and customer care awards.

Commenting on her own award as first runner-up for the Most Customer Focused Executive of the Year in the Private Sector Award, Mrs Chinyenze said she had a passion for customer service excellence.

“I have a passion for service excellence and have tried to mobilise the company and emphasise the importance of customer service. I believe it should be the strategic focus of Telecel,” Mrs Chinyenze said.

She said, given the high priority Telecel gives customer service, it had come as no surprise to hear

that she and the company had been nominated for customer service awards.

“I believe we have done well as an organisation. Personally I have invested considerable time and commitment to ensure that Telecel is known for the best customer experience,” she said.

The Telecel Call Centre is easily accessible to customers and is staffed by customer service agents who have been trained to deal with customer calls and respond effectively to customers’ queries.

The CCAZ Best Call Centre award is awarded to the company that would have made the best use of technologies as a core strategy of their commitment to elevate the overall system efficiency, resources management and customer service quality. In addition connectivity and harmonisation of these technologies is also taken into consideration.

Issued on behalf of Telecel Zimbabwe by MHPR Public Relations Consultants, 59 Van Praagh Avenue, Milton Park, Harare.Tel 251538-40. E-mail mail@mhpr.co.zw

Contact Person: Chengetai Chinembiri

BANKING and FINANCE

The Business Star’s Tarisai Jangara caught up with Emmanuel Mugadza, an economic analyst and Head - Market Risk|MBCA Bank who shared his views on the economic and banking sector outlook.

T.J Where the economy is likely to go at any point in time is a crucial input into most important decisions an enterprise makes. Inflation or deflation? If you could somehow fast forward to 2015, what is the likely scenario?

E.M With continued use of a stable US dollar in the economy, inflation levels are expected to remain containable - within manageable levels of ~3% with a negative trend for the next ensuing years, however muting a local currency prematurely is likely to see the return of a hyperinflation . Since 2010, annual inflation levels have averaged about 3.5%, which falls far below regional parity averages.

Consumer goods inflation has remained fairly modest, however corporate bodies have had to feel the brunt of a “retail economy” which has seen the trade deficit widen. Whilst a weakening rand has reduced some import costs, fierce competition between

retailers has forced margins to their lowest levels at such a time where production costs have been growing at a steeper gradient compared to revenues. Generally deflation has been characterizing the market due to suppressed demand on the back of liquidity constraints.

As the economy continues to improve, inflation is anticipated to kick in. With economic growth prospects converging towards points of stagnation, impetus to re-ignite key fundaments becomes of imminent concern to the new government. To a somewhat extent, one can say that it is not necessarily an aspect of economic expertise that is needed to instigate transition but an aspect of Political Will that is in convergence with the need to implement and administer systems and institutions which can stimulate and facilitate for Foreign Direct Investment, Infrastructure reconstruction, policy transition in a transparent and efficient manner whilst facilitating for real gross domestic production. As the errors of the lost decade have become a mere reflection of us in the present stead, as a nation we can only look back to draw lessons whilst our hope for the future we yearn is at our “ wills” grasp.

T.J In relation to Zimbabwe, what is your comment on protectionism or open markets in this current environment?

E.M An open market operation (OMO) is an activity by a central bank to buy or sell government bonds on the open market. A

central bank uses them as the primary means of implementing monetary policy. The usual aim of open market operations is to manipulate the short term interest rate and the supply of base money in an economy, and thus indirectly control the total money supply, in effect expanding money or contracting the money supply. This involves meeting the demand of base money at the target interest rate by buying and selling government securities, or other financial instruments. Monetary targets, such as inflation, interest rates, or exchange rates, are used to guide this implementation.

Zimbabwe is therefore unable to use open market operations as it does not have a local currency in use, but relies on other currencies from other economies. It thus cannot control exchange rates because our business is insignificantly small to impact exchange rate and inflation. Interest rates remain the same and the difference with the American rate is largely accounted by sovereign risk. open market operations are thus difficult to implement in the current Zimbabwean market. However government may issue papers for purposes of raising funds from the market for purposes of meeting their obligations and not to influe exchange rates, inflation or interest rates.

T.J What can be done to improve the Zimbabwean economy?

E.M The Macro Economic Outlook- Implementation of the staff monitored program with

IMF and the World Bank remains a critical facet to the address of debt relief and the unlocking of new inflows for development financing. This move is significant to Zimbabwe in that it is the country’s first IMF agreement in over a decade and is a prelude to any future lending engagement. Despite signs of the process stagnating largely due to the political processes, p remains of profound effect to the country’s ability to source external financial and technical support in the future.

With the experiences of the GNU having been learnt the hard way in regards to policy formulation and consistency in implementation, we look to the newly formed structures to drive towards policy clarity and consistent implementation. Of key would be an Nationalization process which with new leadership restructuring of the implementation process.

Whilst the overall macroeconomic stance remains a function of the new governments mandate and objectives over the next 5 years , in trying to give some indicative proximity we have come up with a 3 s scenario analysis developed to synchronize a possible forecasted future landscape .

T.J What is really causing Zimbabwe’s economic problems?

E.M The Zimbabwean economic set up is in such a way that, economy depends largely on the export performance the multicurrency system doesn’t

allow the country to stimulate economy through instruments such as interest rates or exchange rates. As a result, the country’s aggregate exports have maintained an increasing trend since 2009, reflecting a CAGR of 34% through 2012. However, despite these developments, the country’s trade deficit has remained relatively high due to disproportionately large amount of imports. Total imports since the inception of multicurrency have increased by 112% to levels of ~$5.2 billion by December 2012. In the short term, the trade deficit is expected to widen volatile global commodity prices and lack of competitiveness and downside risks associated with the fragile global economy and limited capacity in key sectors.

Financial Services sector developments

Stagnating growth in the deposit base against a more than proportionate increase in funding requirements continues to incapacitate the sector from adequately matching the economy’s funding needs. Total deposits increased by 5.3% from $4.2 billion in January 2013 to $4.4 billion while total banking sector loans and advances increased by 5.56% from US$3.4 billion to US$3.59 billion.

Revenues in the sector were confronted by the MoU agreement established earlier on in the year which overall affected the performance of non funded income

T.J How do you see the banking

sector in the next five years? To what extend do you think it will contribute to the country’s economic revival?

E.M The Memorandum of Understanding (MoU) entered into by the regulator and banks through BAZ in February 2013, resulted in bank charges and interest rates being reduced and the profitability levels of banks were heavily affected. As a result, most banks recorded profits below budget, agreement had material effect to the sectors HY.

Performance in ensuing years charges are most likely to be absorbed into basic operations of the banks.

• The unavailability of a credit rating bureau on the market has had adverse effect on banks in terms lending. Enterprises and individuals borrowed. Individual customers are hopping from one bank to the next in search for credit facilities without capacity to repay. Resultantly, credit impairment charges have been on the rise, US$26.8 million for half year against US$29.9 million for the full year to 2012.

• Cost of funding remains high. With deposits largely being transitory in nature, loans and advances for most local banks are being financed by costly funds, the lines of credit that have been accessed have generally shorter tenures and when rolled over are even more expensive. The continued perception of Zimbabwe as a high risk country; make external funding very costly and those with a high appetite for risk

demand high interest rates.

• Liquidity on the market remains a major cons compounded by the absence of the lender of last resort and lack of tradable instruments. Deposits are generally short term in nature while demand for loans is long term thereby posing high re-pricing risk for banks.

• The customer catchment area continues to dwindle as some corporate scale down their business, and banks have fight for business in a shrinking market;

• With the advent of mobile banking on the market, banks have witnessed stiffer competition from mobile operators. This has been further compounded by the refusal by some mobile operators to open up their gateway to the banking industry so that they can originate transactions so that in the process they can realize fees and commissions.

Banking Sector OutlookLike any phenomenon, economic theory is not immune to the mean reversion principle, which holds that over time extreme ends of a spectrum will be eliminated as variables tend towards the mean, weakest players are eliminated while abnormal profiteers are forced to settle for normal profits as the competitive landscape intensifies. Such is the case for Zimbabwe’s banking sector, confronted by revenue restricting legislation, and cut throat competition in a monopolistic competition setup

with many players scrambling for a little over US$4 billion worth of deposits.

• The effects of the MoU have echoed the need for alternative revenue sources within the sector with strong emphasis on sustainable investment in Information Technology Systems and Product innovation and Development. The aptitude to mobilize cheaper lines of credit will also have profound domino effect in the sector going forth as the local liquidity conditions have remained resiliently squeezed.

• Capitalization efforts will continue to be at the forefront of corporate finance and restructuring activity in the sector as Bankers strive to meet capitalization requirements. The ability to secure partnerships with regional and international investors will depend largely on individual performance and potential as well as the prevailing political and economic environment, clarity and delineation on the Indigenization policy with regards new investment will also play a profound role in facilitating foreign investment into the sector.

• Central Bank regulation is expected to intensify in efforts to ensure adequate capitalization levels as well as to ensure systematic stability through compliance with global Banking supervision frameworks like Basel II.

• Pressure to adhere to specific lending guidelines to support

economic recovery is also expected to come from various economic and political spheres as efforts to re-invigorate key production sectors of the economy becomes more imminent. Banks would have to seek out fresh lines of credit with medium to long term tenors. A strong stance against corruption taken by the President is anticipated to go a long way in attracting foreign direct investment which is anticipated to easy market liquidity strain. Government’s proposed position to revise the banking act is likely to send a cloud of uncertainties to investors.

• A less aggressive drive towards enforcement of indigenization and Empowerment law in the financial services sector is expected from the new government to be cognizant of the sector’s sensitivity, and the role of financial intermediation to Economic recovery and growth. Already we have heard comments purporting to a lax modus operand, cognizant of the need to boost FDI flows into the country.

• Industry face is set to change as corporate finance and restructuring activity gains momentum from capitalization endeavors, mergers, equity partnerships and Convertible financing arrangements are expected mark the face of the financial services sector in the coming period.

CABS records surplus

ZIMBABWE’S largest mortgage lender, Central African Building Society (Cabs), recorded a surplus of $10,7 million in the first half of the year helped by an improvement in interest and non-interest income, latest financial results show.

In unaudited financial results for the first six months of the year, net income interest rose by 29% to $2,7 million from $1,95 million recorded in the same period the previous year.

The growth was aided by an increase in loans and advances which in the period went up to $296,8 million from $245 million registered in the same period in the previous year.

“Net interest contributed 56% of the building society’s total income,” Cabs said in a statement accompanying financial results.

Fee and commission income grew by 13% to $12,2 million buoyed by an increase in transaction volumes during the period.

Comparatively, operating costs increased by 33% to $17,4 million from $13,1 million achieved in the same period last year as the building society was on expansion drive during the period.

As a result, the cost to income ratio went up to 62% compared to 58% recorded in the same period last year.

Cabs said total assets grew by 18% to $117 million driven by a deposit growth of 21 % in the period under review.

In the same period the building society’s loans and advances increased to $296,8 million up from $278 million recorded in December last year.

Cabs added that 10-year mortgage loans improved to $104 million from $94 million achieved in the same period the previous year.

In that period, under review Cabs opened an additional branch and rolled out banking agents to improve accessibility.

Points of sale acquired through Zimswitch reached 73% while text-a-cash mobile remittances products exceeded revenue and usage target. Going forward the building society said it will pursue growth initiatives to enhance its role in both housing and financing. – Staff writer

AGRICULTURE and FARMINGLand ownership key to national food

securityTHE ZIMBABWEAN government is prioritizing the land question in respect of land ownership and tenure to unlock full potential in the agriculture sector, a top official has said.

Zimbabwe’s fast track land reform programme of 2000, according to the Commercial Farmers Union, displaced most of the 4 500 active large scale commercial farmers much to the detriment of national food security.

This move disrupted land title and banks have been reluctant to fund farmers citing a lack of collateral.

Finance Minister Patrick Chinamasa allayed fears farmers would continue facing funding problems on the basis that they lacked security as a lasting solution was currently being formulated under the Ministry of Lands.

“Obviously the issue you have raised is a separate issue and is being handled in the Ministry of Lands and at an appropriate moment that situation will be ratified,” said Chinamasa recently.

The finance minister however said funding should still be available to farmers whether or not the land tenure system is revised.

“First I been meeting the bankers and I want to emphasise this, people fund not because you have security but because what you are doing is viable. What you are doing can produce a cash flow which shows you can pay back the loan that what matters,” the Finance minister said.

He said discussions were at an advanced stage with bankers for a viable funding solution with a stop order system as a possible option.

“So you have a situation where contractors are funding tobacco producers in communal areas, you know they are funding up to the tune of US$100 000 with no security because they know

after the production of the tobacco there is a marketing board which operates a stop order system for repayment and they have been happy with that,” the minister said.

Chinamasa said farmers must ensure they honour their debts and submit bankable proposals to access funding from banks under terms that are yet to be finalized.

“I know farmers who have no land, they are illegally renting land from those who have offer letters and those are being funded by banks, there is no collateral. Lets strengthen the collection of debts, let’s have a system that strengths the collection of debts which are lent to farmers ad we do that through stop orders.”

“When I had discussions with the bankers they obviously would raise issues about collateral and what a view but I put to them the suggestion and I have already out it to my colleague. We need to revive in a serious way the farmers stop order system. We need to revive it and make it work especially for crops that are delivered to GMB and I don’t c any legal problems even to extend that system to other buyers of grain, that something that we can look at.”

Chinamasa argued the problem with local agriculture is a marketing one.

Agriculture minister Joseph Made added grain buyers must ensure timeously payment to farmers so that they are able to go back to the fields.

“The issue of collateral, if you go worldwide, you will that is not the way things are done as people are suggesting,” made said.

He said local banks were currently funding bankable projects of any size.

“It’s not only tobacco, cotton, potatoes and may crops that are being funded by banks and to small producers that will surprise you.”

This comes at a time when government has reaffirmed its commitment to agriculture, unveiling a US$160 million grain support scheme for the sector earlier this month.

The scheme will benefit 1, 6 million households across the country with 10kg of maize or grain seed, 50kg of compound D fertilizer, 50kg

fertilizer ammonium nitrate and 50kg lime in old resettlement, small scale and A1 farming areas for the coming farming season with an option for livestock production at a cost equivalent to the grain

Inputs Chinamasa said US$39, 1 million will be used to buy seeds, US$50, 1 million for buying compund D, US$57 million for ammonia nitrate and another US$11 million to buy Lime.

The move is, according to Chinamasa, a step towards reviving the agricultural sector which has suffered from a chaotic land reform and subsequent lack of funding.

The long term objective is to see Zimbabwe regain its breadbasket status for the SADC region while ensuring farming recovers to pole position as the economic backbone.

Chinamasa sad government will address crop pricing challenges to stimulate production going forward.

“What we have also not mentioned is that we are most unhappy with what is happening in the cotton industry, the Ministry of Industry is going to look into that issue, we are very unhappy that traditional growers of cotton are moving to other crops such as tobacco. This is a very unsatisfactory development, something we should not accept because cotton opens up more opportunities for us because it has more value chains.”

US biotech expert on Agri-biotechnology

Sizani Weza

A visiting United States biotechnology expert, Dr Wayne Parrott, says the use of biotechnology can enhance agribusiness and fears about genetically modified organisms (GMOs) are founded more on technical concerns than their safety to health.

Biotechnology harnesses living systems and organisms to develop or make technologies and products that help improve our lives and the health of plants and animals. Currently, there are more than 250 biotechnology healthcare products and vaccines available to patients, many for previously untreatable diseases.

More than 13.3 million farmers around the world use agricultural biotechnology to increase yields, prevent damage from insects and pests and reduce farming’s impact on the environment. Yet concerns about any products of biotechnology such as GMOs continue.

It’s safe, says Dr Parrott. “Before anything reaches the market, it has to be reviewed by the food safety authorities in almost all countries,” Wayne Parrott who was in Zimbabwe mid-September. “With these multiple safety layers built into the system, it’s an expensive and lengthy process with millions of dollars’ worth of testing required.”

Dr. Parrott, a professor of Crop Science at the University of Georgia, was in the country where he participated in several outreach programs designed to foster dialogue on agricultural biotechnology, ultimately supporting policy and

regulation development, as well as building of scientific capacity in biotechnology. His area of expertise is in Plant Breeding and Genomics and has conducted research on the development and deployment of transgenic crop plants.

“We have so much data on these GMOs and we have the data to answer the questions. GMOs are as safe as the other foods we have if not safer. GMOs are the most studied foods in history,” said Dr. Parrott who has published over 80 journal articles in refereed publications, along with 12 book chapters and three patents.

Addressing farmers and academics at an event sponsored by the National Biotechnology Authority of Zimbabwe, in collaboration with the University of Zimbabwe, Climate XL, and the United States Embassy; noted that the debate on biotechnology had an invariable centered on the safety of GMOs.

“It is true that it is a topic that is debated,” noted Dr Parrott. “The information has not reached the people, we have a technology where the private sector beat the public sector as far as getting to the marketplace, and as far as the private sector goes half of those suppliers are European.”

He said concerns about costs to farmers and other public bodies were a non-issue given that “most GMO seeds are coming off patent and are entering the public domain.”

“Eighty percent of the GMO research is by public institutions around the world it ministries of agriculture, universities, international research centers- and the products of their developments have just started entering the market scene,” said Dr Parrott.

Among other issues tacked during Dr Parrott’s visit where biotechnology research in Zimbabwe; strategic partnerships for biotechnology research; benefits, risks and drawbacks of increased use of biotechnology to the business community; key concerns of consumers and how they can be addressed; priority areas of biotechnology and how to engage on the topic.

Local scientists noted that Zimbabwe has potential to lead among African countries in biotechnology research but there were no resources. Over 20 years ago, the University of Zimbabwe started a Master of Science program in Biotechnology which produced just over 80 graduates, noted Dr Idah Sithole- Niang, Professor of Molecular Biology and Virology at the University of Zimbabwe. She said some of the graduates are prominent in the biotech industry in South Africa and other countries in 38 now fully doctored. The program has been re-enacted this year and will have a fresh intake in January 2014.

Prof Idah Sithole- Niang: “Zimbabwe was one of the first African countries to enact a Biosafety law, and spearhead that with related research. The potential still exists to get back there…in Kenya and Uganda- scientists are excelling in conducting research. We are lagging behind. If you just infuse that with the resources we can become a giant.”

Dr Fiona Robertson of Agritech Zimbabwe said seed potato production has decreased over the last 10 years because of lack of equipment and limited support from the government to produce the seeds. She said the country had very good regulations; in place since 1988 but have not been tested but these have not been tested.

Professor Sithole Niang, who is also deputy chairperson of the Research Council of Zimbabwe, said there have been discussions to establish a research fund modeled along the South African National Research Foundation to fund targeted research. “We have a policy that recognizes biotechnology as one way of addressing socio-economic development challenges.”

RETAIL and MARKETINGCUSTOMER SERVICE and its BASICS

by Gerald Brent.

Companies, sole traders and those blessed with the entrepreneurial gift, spend inordinate amounts of time and energy focussing on increasing sales and profits, and rightly so. Always on the hunt for new opportunities, we create front end strategies, strategic partnerships and referral mechanisms to build the ever evolving sales pipeline. Included in this front end activity is often expensive advertising, laborious and intensive activity with, at times, little in the way of results. Perhaps there is an easier way?

Ockham’s Razor (one of the statements linked to the medieval philosopher, William of Ockham, and that accentuates the shaving away of unnecessary assumptions) indicated that “the best solution to a problem is usually the easiest one”. Business owners and managers tend to overcomplicate the problems and issues that surround us, and the looking for the one cause with the easiest solution is at the heart of the statement.

In my personal experience, both as a business owner and a customer, one of the ‘easier ways’ sits right under our progressive and analytical noses. I think because of its profound simplicity, it escapes our notice. That ‘easier way’ is the provision of exceptional customer service and the adding of significant value to both our existing and new clients.

For our purposes here, I will use both a positive and negative, personally experienced an example

for reinforcement.

Walking with some friends on a warm summer evening along the along the first street in Harare, the place was abuzz and most restaurants were overflowing with patrons. We walked past one that had only a few customers but enticed us nevertheless due to its aromatic impact. We decided to eat there. What happened over the next hour helped me understand why the place was empty. The welcome was gloomy, we had to ask for water, I lit the candle on our table, we had to wait (and wait) for the waitress (who was not busy), we had to get up and get serviettes, there was no eye contact as they walked past us… and so it went. Food was great, service was lousy and I have never been back, nor ever will.

The antithesis to this experience was my first visit to Hotel in Harare, Zimbabwe. Warmly welcomed, called by name, preferences listed, rooms cleaned perfectly, etc, made for ongoing and repeat visits. Having stayed there over a 2-month period, I decided, for a bit of variety, to try out another hotel in the vicinity. The rooms and presentation were excellent but the service was incredibly average. The cleaner left dirty cups in my room, no one called me by name, my booking was messed up, eye contact was lacking and so on. Needless to say, I am back at the first Hotel. Upon my return, nothing had changed. Warm greetings with numerous “nice to see you Mr Brent” and I am treated as if I am the most important person there. What was I thinking by trying somewhere else?

The restaurant referred to above, like many other businesses, is potentially spending thousands of dollars on advertising, but lousy customer service only gives them one time business rather than repeat business. Thus the bottom line is seriously impacted by both increased advertising spend and decreased patronage; not a great recipe for any business. The hotel on the other hand, after dealing with them once, created a pathway back, with no additional marketing cost and have extracted large amounts of revenue from my wallet.

The Easy Way – For A Healthy Bottom Line

For new clients:Add value straight up. This might be in

the form of an upgrade to what they have paid for, a small thank you gift, additional service or product for free, etc.

Ensure you explain the process, what they can expect, your pricing, etc.

Take the risk away. Offer strong guarantees in favour of the client that emphasises that you have to perform and that their business is valued.

Call them by name.

After they have completed their first lot of business with you, follow them up with a phone call to ensure their complete satisfaction, send them a loyalty card or discount voucher to assist in their return.

Ask their permission to be added to your mail out list and ensure you keep in touch with them through newsletters, updates, etc, every 30 days.

For existing clients:Develop a system that when they call or

walk in, their details are easily accessible. Train yourself and your team to remember names.

Create levels of memberships that have increasing value.

Reward them for their ongoing patronage. Examples might include upgrades, free entry to upcoming events, social invites, special client evenings, Christmas gifts, complimentary drinks, etc.

Give preferential treatment. Categorise your customers, allowing you to understand who your top tier is and provide something in addition to what you would for your

general client base.

Referrals

Again, one of the simplest, easiest and overlooked ways of generating business. Simply asking for referrals works. Acquisition cost is next to nothing and is the absolute best way of filling your sales pipeline.

Training Your Frontline Team

Easy but neglected. Train your people to smile (or yourself for that matter), talk intelligibly, look at customers in the eye, go out of your way to make the customer’s experience incredible. It might mean making coffee for them, cleaning up after a job (in the tradesman’s case), showing them around, explaining the process, etc.

Surveys And Follow UpThe best method here is a phone call. Vehicles service centres must emulate this. Within 24 hours of a car being serviced, and without faltering in five years, make a phone call to ensure the customer is happy with the service received.

In closing, some personally experienced examples:

The GreatStaff who remember my name with the

simplicity of a genuine smile.

Employees who notice the small things, taking it upon themselves to improve my condition.

The taxi driver, mindful of my time and money takes the quickest route.

The company, hotel or store that makes me feel like I am their most important client, not just a number or dollar.

The BadThe waitress who asks “do ‘yous’ want a

drink?”

The retail assistant who says “are you happy browsing?” Reinterpreted… “please do not bother me, I have got better things to do”.

The tradesman who grunts and leaves a mess.

Sales people who are more interested in getting the sale than in my needs.

The UglyTelephony support who upon hearing my

complaint say “I understand”. How can they? They are not me!

Invoices that end up double what I expected because things were not explained properly at the start.

The bank that provides one teller for lunchtime queues.

Overhearing foul language from reception staff.

As in all things, what you value, shapes your actions. And, if your company puts me first and communicates I am important, I will more than happily be a long-term, paying customer. I will refer my friends, be your evangelist and open my wallet. It will then mean decreased marketing costs, increased sales and profit for you. Easy!

Marketing and ICT with Matildah Zijenah

“THE CASE FOR FACEBOOK”With over 1 billion users worldwide Facebook the social networking site continues to grow and engulf novices and old hands in its wake. More and more companies are setting up base on Facebook (following the conversation) hunting down fans through the omnipresent “Like” without which a fan base cannot be built. Research has shown that people “Like” Facebook Pages because they want to stay up-to-date with a particular company’s activity and get to know them better. Another reason people click “Like” is the long standing need for brand association stemmed in the inspirational values that guide our actions as humans. People want to be associated with brands whose values, add value to their own lives and Facebook provides a permission based platform for people to segment themselves based on these very principles. This of course leaves organizations of every industry shape and size to window shop and identity their target markets in a ready to use form i.e “conduct market research”, offer highly targeted valuable information and service ” at a fraction of what it would normally cost.

While Facebook marketing is on the rise among businesses, many are still struggling to master the basics. Like the general idea of a marketing campaign strategy to launch a product. When setting up a Facebook page you have to have a strategy in place - a plan of action. Failure to plan can and will in most cases result in an unstructured approach that is not authentic enough to encourage those “Likes” to interact with your brand and incite the kind of action that leads to the viral sharing synonymous with inspired content. In Zimbabwe our corporates have been a long time coming onto the digital platform, but I am happy to report that

the few that have dared venture into this territory have found that their audience had been awaiting their arrival. I do not know about you but every time I see a familiar Zimbabwean brand or any brand proudly Zimbabwean on Facebook I am prompted emotionally to “Like” its page.

Because the reality is true in Zimbabwe as it is around the world that communities are gathering online and a conversation about your brand has ensued with or without your participation. Have you considered social media as another channel of communication over the last few months? Is your business taking advantage of the Facebook platform? Are you still not sure if it is worth your time and effort? You are not alone

But guess what? I’ve got you covered I have some specific how-to advice so you can get rolling along the social media platform. Below are six key issues to consider when venturing into Facebook country!!!

1. ObjectivesFirst and foremost outline your purpose for setting up a Facebook page, and remember you can have multiple objectives that include: enhancing customer service, increasing traffic to your website, building brand awareness, increased customer engagement, or building an email list. Whatever or however many your objectives are they must be clear and your page should reflect this purpose. Once you have determined these objective the next step is to prioritize them so that you align your efforts with the most important of your objectives for setting up your Facebook page

2. ContentFacebook is a social place; people do not expect to be bombarded with sales pitch upon sales pitch. In-fact the opposite is true. People want content that is relevant, fun and useful to them and their friends in order for them to share it. Think carefully about the content you upload onto your Facebook page whether it’s images, videos, funny commercials or information that is valuable to your audience. I recommend having a structured approach. Plan in advance use the calendar to guide your Facebook

activities, and this will ensure you do not become repetitive and boring. The moment you become predictable your audience will stop visiting your page, now that you do not want to happen given the new Facebook algorithm-driven news feed. This new feature means that just because someone “Likes” your page, does not mean they will see your wall posts or status updates. This now requires engaging content that will get comments and shares. So it is critical to keep your content relevant, personal and varied in order to show up on profile news feeds. Facebook insights can help you track which content is most effective for your target audience. They have “Liked your page now it is your job to make them stay. According to Facebook spokeswoman Annie Ta “Facebook is all about authenticity, so if your company is not being authentic or engaging with customers in a way that feels genuine, the community will see right through it”.

3. AestheticsA lot of people overlook the importance of design for their Facebook Page; a lot can be done with timelines and cover timelines to clearly stamp your brand identity. Facebook now offers much more screen real estate for your Facebook Page than was offered in the not so distant past, when all we had to work with was a profile picture and a few custom tabs. Facebook has made it a priority to continuously enhance its visual offering, providing brands the essentials to create an

undeniable and focused visual brand presentation. Ensure that your designs echo the needs of your audience with whom you are trying to reach out to. So get your Facebook administrator to take full advantage of this branding opportunity and be counted amongst the top Facebook pages...you never know you may be subject to a case study, which would be great PR for your organization.

4. Promote Whilst Facebook is not a platform for you to broadcast business however, you must promote your page in order for your audience to find your brand and your relevant content. Research has shown that only about 3-5% of your fans actually see the information that you publish onto your wall, as a result in order to enhance your visibility you have to promote your page. There are a number of ways you can do this and these include offering sweepstakes and contests that offer prices that are of value to your fans. You can also use Facebook advertising through sponsored stories, promoted posts, you can also target people that have liked your page to promote targeted content. Remember those segments I spoke about earlier, you can use these wisely when promoting specific content so that you do not annoy those fans of yours to whom the content is not relevant. You can also promote your Facebook page on your website, too many organizations do not link their website to their page, this really amounts to a missed

opportunity to convert from fan to paying customer. You can also promote your page offline and you should in all your traditional channels of communication that include and are not limited to billboards, newspaper adverts, radio infomercials and any other outdoor signage you may have.

5. Time managementA lot of the time my new clients will say to me “It’s not that big of a deal is it Matilda just set up our Facebook page and we will take it from there”. Well I do not think so, unless of course you have someone designated to manage your page then you will not be serving your audience effectively. It takes a great deal of time to plan what content you will put out to your fans, its frequency and quantity all have to be considered. Time management is critical especially if your main objective is to enhance customer service, the time in which it takes you to respond to complaints and comments will determine how your fans interact with you. It is in bad taste not to respond to comments within 24 hours of them being posted. It is important to have a clear Facebook strategy in place as to how you will communicate with your audience; you need a policy in place to deal with the negative aspects of being on social media that clearly outlines how you will address such issues when they do arise. Timely responses, relevant content and constant monitoring will ensure that your fans have their needs met and will stay engaged.

6. Terms of engagementThere are few rules that you pledge to abide by when you set up a Facebook Page, and these dear readers cannot be broken under any circumstances. As with any terms of engagement should Facebook find you violating any of its terms your Page will come under scrutiny and risk being shut down. Hence just as you will take the time to learn how the tools of Facebook work so too must you learn the rules of engagement. Ensure that you are not setting up your Facebook Page on a personal profile page, consider Facebook rules when setting up contests and events. I guess one violation that will get Facebook on your Page tail is tagging people in photos that you upload into your Page from an event you have hosted or from elsewhere. Not only does Facebook find it offensive but in general people do not like to be tagged in photos without their consent. Take the time to get well acquainted with all the rules stipulated to ensure that all your hard work does not end up in the Facebook recycle bin.

So...Remember above all else it is not about you broadcasting your brand, it’s about you know your target audience enough to share relevant content that is engaging on an ongoing basis. Lastly, offer more of the content that resonates with your audience, use Facebook Insights to guide your decision. Here’s wishing you as many relevant “Likes” as your relevant Facebook page can contain!!!!

Matildah Zijenah, the Founder and CEO of Identity 365 Media Lab writes in her own capacity. She can be contacted on mzijenah@yahoo.com.

LEADERSHIP PERSPECTIVEIn Praise of Micromanagement

What do Steve Jobs, Mickey Drexler, and Jeff Bezos all have in common?

They are all builders of giant brands, from Apple to J Crew, to Amazon? Yes, but there’s something else you might not realise they have in common, and it is directly related to their success — each is (or was) an unmitigated, unapologetic, micromanager!

What gives? How could the bane of many of our performance reviews actually be a good thing? I can’t tell you how many leadership experts have listed micromanagement as Public Enemy No. 1. But, when strategically applied, it can be a powerful tool not only to get things done, but to develop talent as well.

If not for Tim Cook, perhaps the legend of Steve Jobs would not have turned out quite so well.

Why would you micromanage anyway? Here’s a bad answer: because you don’t trust anyone else to do his or her job as well as you could. A better answer: because you are so passionate about what you are doing that you are always striving to make it better. The best answer: because you have a vision for what your business should look like and you are prepared to back up that vision with action.

The modern executive is taught — in business schools and in many jobs — that to manage people effectively is to delegate, and then get out of the way. I teach our masters of business administration students at Dartmouth’s Tuck School of Business much the same thing, except for one caveat: Delegating is only step one. It’s not delegate and forget; it must be delegate and be intimately involved with what happens next.

You don’t want to, and can’t, do everyone else’s job for them. But why would you walk away, as so many managers do? When you have deep passion for your business, your job, you also have a responsibility to be involved with how your vision is executed. You will likely step on some toes along the way and you may go too far on occasion, but which is worse: occasionally butting in on a subordinate’s work to make a point, or not providing real-time feedback to help that subordinate grow and excel? The dichotomy between delegation and micromanagement is false and misleading. It’s not one or the other, it’s both! And if that doesn’t sound so easy to do, well, welcome to the big leagues of leadership.

Being able to handle, and indeed thrive, by doing two opposing things at once is a hallmark of great leaders. Such “ambidextrous” leaders intensely execute today’s game plan while sowing the seeds for what comes next. They are deeply analytical at the same time as they are looking for creative solutions to business

challenges. And they are hands-on delegators. It’s a paradox only for the tired and the timid.

And now the fine printMicromanagers must be selective. You can’t delve into the details of everything, and in fact superstar micromanagers don’t. Mickey Drexler might interview every single corporate hire — and more — at the $2.2 billion J Crew, but he lets other leaders manage the IT function. Steve Jobs was intimately involved with each product the company designed, and was even famously involved in designing the glass stairs at the Apple stores. But financial and operational issues were delegated to second-in-command and current Apple chief executive officer Tim Cook.

Even Jeff Immelt, CEO of blue-chip industrial conglomerate General Electric, is a selective micromanager. For him, intimately knowing the top 500 executives in the company, what their performance and potential looks like and what they need to develop further, are always at the top of his agenda. That’s not a bad role model for any manager, at any level, come to think of it.

One key: micromanagers must be experts. What could be worse than a manager immersed in the details who really doesn’t know his stuff? Sam Walton spent most of his time flying in his little airplane to visit stores, deepening his knowledge as he went. When he had something to say, there was deep credibility behind it.

There is a natural limit to when micromanagement makes sense. Once a job, or a company, becomes too complex or too big, it becomes that much harder to gain the visibility and time you need to stay expert. This is a real danger zone for would-be micromanagers. You just don’t have enough time in the day, or energy in the belly, to keep up at the pace that is necessary. Either you embrace the principle of selective micromanagement, or you go down trying to do what cannot be done.

Finally, it takes a strong, trusted team to be a micromanager. Could Steve Jobs have spent weeks with the iPhone design team if there was no one else to mind the store? If not for Tim Cook, perhaps the legend of Steve Jobs would not have turned out quite so well.

The good news is that the best micromanagers are often the best talent developers. Their attention to detail, their intimate knowledge of the business and their deep involvement in what’s going on actually enables more, not less, delegation. Their position in the centre of the work creates an opportunity for micromanagers to challenge subordinates with big assignments precisely because they are informed. Delegating big does not carry the same degree of risk that it might for the typical manager.

And so, the final paradox of the micromanager is this: micromanagers actually help other people get better at what they do. - Capital

The Most Successful Leaders Do 15 Things

Automatically, Every Day

Leadership is learned behavior that becomes unconscious and automatic over time. For example, leaders can make several important decisions about an issue in the time it takes others to understand the question. Many people wonder how leaders know how to make the best decisions, often under immense pressure. The process of making these decisions comes from an accumulation of experiences and encounters with a multitude of difference circumstances, personality types and unforeseen failures. More so, the decision making process is an acute understanding of being familiar with the cause and effect of behavioral and circumstantial patterns; knowing the intelligence and interconnection points of the variables involved in these patterns allows a leader to confidently make decisions and project the probability of their desired outcomes. The most successful leaders are instinctual decision makers. Having done it so many times throughout their careers, they become immune to the pressure associated with decision making and extremely intuitive about the process of making the most strategic and best decisions. This is why most senior executives will tell you they depend strongly upon their “gut-feel” when making difficult decisions at a moment’s notice.

Beyond decision making, successful leadership across

all areas becomes learned and instinctual over a period of time. Successful leaders have learned the mastery of anticipating business patterns, finding opportunities in pressure situations, serving the people they lead and overcoming hardships. No wonder the best CEOs are paid so much money. In 2011, salaries for the 200 top-paid CEOs rose 5 percent to a median $14.5 million per year, according to a study by compensation-data company Equilar for The New York Times.

If you are looking to advance your career into a leadership capacity and / or already assume leadership responsibilities – here are 15 things you must do automatically, every day, to be a successful leader in the workplace:

Why Top Talent Leaves: Top 10 Reasons Boiled Down to 1 Erika Andersen Erika Andersen Contributor

15 Ways To Identify Bad Leaders Mike Myatt Mike Myatt Contributor

The Seven Habits of Spectacularly Unsuccessful Executives Eric Jackson Eric Jackson Contributor

Why You’re Not A Leader Mike Myatt Mike Myatt Contributor

1. Make Others Feel Safe to Speak-UpMany times leaders intimidate their colleagues with their title and power when they walk into a room. Successful leaders deflect attention away from themselves

and encourage others to voice their opinions. They are experts at making others feel safe to speak-up and confidently share their perspectives and points of view. They use their executive presence to create an approachable environment.

2. Make DecisionsSuccessful leaders are expert decision makers. They either facilitate the dialogue to empower their colleagues to reach a strategic conclusion or they do it themselves. They focus on “making things happen” at all times – decision making activities that sustain progress. Successful leaders have mastered the art of politicking and thus don’t waste their time on issues that disrupt momentum. They know how to make 30 decisions in 30 minutes.

3.Communicate ExpectationsSuccessful leaders are great communicators, and this is especially true when it comes to “performance expectations.” In doing so, they remind their colleagues of the organization’s core values and mission statement – ensuring that their vision is properly translated and actionable objectives are properly executed.

I had a boss that managed the team by reminding us of the expectations that she had of the group. She made it easy for the team to stay focused and on track. The protocol she implemented – by clearly

communicating expectations – increased performance and helped to identify those on the team that could not keep up with the standards she expected from us.

4. Challenge People to ThinkThe most successful leaders understand their colleagues’ mindsets, capabilities and areas for improvement. They use this knowledge/insight to challenge their teams to think and stretch them to reach for more. These types of leaders excel in keeping their people on their toes, never allowing them to get comfortable and enabling them with the tools to grow.

If you are not thinking, you’re not learning new things. If you’re not learning, you’re not growing – and over time becoming irrelevant in your work.

5. Be Accountable to OthersSuccessful leaders allow their colleagues to manage them. This doesn’t mean they are allowing others to control them – but rather becoming accountable to assure they are being proactive to their colleagues needs.

Beyond just mentoring and sponsoring selected employees, being accountable to others is a sign that your leader is focused more on your success than just their own.

6. Lead by Example

Leading by example sounds easy, but few leaders are consistent with this one. Successful leaders practice what they preach and are mindful of their actions. They know everyone is watching them and therefore are incredibly intuitive about detecting those who are observing their every move, waiting to detect a performance shortfall.

7. Measure & Reward PerformanceGreat leaders always have a strong “pulse” on business performance and those people who are the performance champions. Not only do they review the numbers and measure performance ROI, they are active in acknowledging hard work and efforts (no matter the result). Successful leaders never take consistent performers for granted and are mindful of rewarding them.

8. Provide Continuous FeedbackEmployees want their leaders to know that they are paying attention to them and they appreciate any insights along the way. Successful leaders always provide feedback and they welcome reciprocal feedback by creating trustworthy relationships with their colleagues.. They understand the power of perspective and have learned the importance of feedback early on in their career as it has served them to enable workplace advancement.

9. Properly Allocate and Deploy TalentWhy Top Talent Leaves: Top 10 Reasons Boiled Down to 1 Erika Andersen Erika Andersen Contributor

15 Ways To Identify Bad Leaders Mike Myatt Mike Myatt Contributor

The Seven Habits of Spectacularly Unsuccessful Executives Eric Jackson Eric Jackson Contributor

Why You’re Not A Leader Mike Myatt Mike Myatt Contributor

Successful leaders know their talent pool and how to use it. They are experts at activating the capabilities of their colleagues and knowing when to deploy their unique skill sets given the circumstances at hand.

10. Ask Questions, Seek CounselSuccessful leaders ask questions and seek counsel all the time. From the outside, they appear to know-it-all – yet on the inside, they have a deep thirst for knowledge and constantly are on the look-out to learn new things because of their commitment to making themselves better through the wisdom of others.

11. Problem Solve; Avoid ProcrastinationSuccessful leaders tackle issues head-on and know how to discover the heart of the matter at hand. They don’t procrastinate and thus become

incredibly proficient at problem solving; they learn from and don’t avoid uncomfortable circumstances (they welcome them).

Getting ahead in life is about doing the things that most people don’t like doing.

12. Positive Energy & AttitudeSuccessful leaders create a positive and inspiring workplace culture. They know how to set the tone and bring an attitude that motivates their colleagues to take action. As such, they are likeable, respected and strong willed. They don’t allow failures to disrupt momentum.

13. Be a Great TeacherMany employees in the workplace will tell you that their leaders have stopped being teachers. Successful leaders never stop teaching because they are so self-motivated to learn themselves. They use teaching to keep their colleagues well-informed and knowledgeable through statistics, trends, and other newsworthy items.

Successful leaders take the time to mentor their colleagues and make the investment to sponsor those who have proven they are able and eager to advance.

14. Invest in RelationshipsSuccessful leaders don’t focus on protecting their domain – instead they expand it by investing in mutually beneficial relationships. Successful leaders associate themselves with “lifters and other leaders” – the types of people that can broaden their sphere of influence. Not only for their own advancement, but that of others.

Leaders share the harvest of their success to help build momentum for those around them.

15. Genuinely Enjoy ResponsibilitiesSuccessful leaders love being leaders – not for the sake of power but for the meaningful and purposeful impact they can create. When you have reached a senior level of leadership – it’s about your ability to serve others and this can’t be accomplished unless you genuinely enjoy what you do.

In the end, successful leaders are able to sustain their success because these 15 things ultimately allow them to increase the value of their organization’s brand – while at the same time minimize the operating risk profile. They serve as the enablers of talent, culture and results.

STRATEGY and MANAGEMENT

10 office personalities Which one are you?

Every office has a wide range of personalities. Here, LondonOffices.com spokesperson Michael Davies identifies ten office types. Which one are you?

1. Brown-noserEvery office has one of these. These shameless sycophants suck up to management in the hope of promotion.

Have you ever commented on your boss’s appearance or do you stick your head round their office door each afternoon and offer to get them lunch?

If you have then you definitely fall into the brown nose category and you should start to think very carefully about your behaviour. Not only will this alienate your colleagues, more often than not management can see right through it.

Trying to get a promotion through brown nosing rather than hard work is, to all intents and purposes cheating, and remember, cheats never prosper.

2. Lazy GitNothing annoys office workers more than having someone in their team who doesn’t pull their weight.

Whether it is not doing their fair share of the work or relying on others to carry them through, lazy gits are generally more preoccupied about checking their Facebook than the task in hand.

If you have developed ways which waste time but make you look busy, such as tidying your inbox or organising your desk, then you probably fall into this category.

3. Stress PotStress pots are highly volatile people. From the moment they wake up until they go to bed they are worrying about something.

For them, the tiniest set back can mean the end of the world as they know it and result in a nuclear explosion emanating from their desk.

It is fairly easy to spot if you are seen as the office powder keg. If you would describe yourself as a “control freak” then alarm bells should start to ring now.

Whilst you may see yourself as obsessed with the detail, others will see you as a ticking time bomb ready to blow up in their face over the smallest error.

4. Mug“You couldn’t do me a huge

favour could you?” If you are confronted with this question on a regular basis, then I’m afraid you are the office mug.

Every office has a mug – someone who will always say yes to any task you give them regardless of the job, tasks which are often mind numbingly boring such as photocopying, binding reports etc.

Inevitably, there is a fine line between giving your fellow colleagues a hand and being used. Many mugs delude themselves by thinking that they are just being helpful or that their assistance will be reciprocated, but they are wrong.

When you are doing someone else’s work you are not doing your own and this has a direct impact on both yours and your team’s productivity. In business the ability to say no is just as important as the ability to say yes.

5. SkiverIs there someone in your office who pulls just one to many “sickies” for it to be believable? If yes then you have a skiver in your midst.

Skivers are arguably worse than lazy gits as at least the latter bother to turn up for work, however both are weak links in the office chain and their behaviour needs to be nipped in the bud.

How do you know if you fall into this category? Well, ask yourself how many times you have

passed a hangover off as flu – if the answer is more than once then you are a skiver.

6. ChatterboxIf you would describe yourself as having a bubbly personality who gets on with everybody and enjoys a good gossip, then you are quite possibly the office chatterbox.

There is nothing wrong with chatting about what was on TV last night or if the right person got kicked off X Factor, but don’t let it happen to the detriment of yours and your colleague’s productivity.

Everyone enjoys a good natter but every now and again people would actually like to get some work done. Understand when the conversation has ended and shut up.

7. Credit HoggerCredit hogging can take many forms. These range from not congratulating a colleague for a good idea all the way to passing off someone’s idea as your own.

Hogging the credit for a successful task will win you no friends in the office, and I’m afraid to say middle management is often guilty of this.

Remember a workplace is a team, and for a team to work successfully praise needs to be distributed evenly. Credit hoggers are greedy and will come to regret it the next time they ask their colleagues for help.

8. Worker BeeYou are the first to arrive at work and the last to leave. You eat lunch at your desk and have so few toilet breaks people think your bladder is made of stone.

Conversation between colleagues is limited strictly to business and going for a drink after work is completely off the cards.

Routine is everything for the worker bee, their day is planned to the minute and there is very little room for anything else.

Perhaps due to their reputation for being unspeakable dull, worker bee’s never feel fully part of the office team and as such can be seen as an outsider.

9. JokerHumour is essential for any office environment. If you can’t have a laugh with your colleagues then office moral is seriously affected.

However, when it comes to humour it is essential to know the lines not to cross and more importantly when to stop. The office joker is someone who is oblivious to these points.

Do you always feel the need to be funny? Do you equate making people laugh with them liking you? If so, you are in danger of becoming the office joker. You try and turn everything into a joke even when it is not funny.

If this sounds like you then be very careful because one day you may say something that could backfire on you badly and land you out of a job.

10. MachiavelliHas your ambition to succeed made you ruthless? Are you prepared to leave bodies in your wake to achieve success? If so then you are a Machiavellian.

The Machiavellian is extremely cunning, they know where they want to get and will stop at nothing to achieve this.

There is nothing wrong with ambition, for some it’s what gets them out of bed in the morning and what motivates them to work hard, however, this determination can turn to ruthlessness.

They will tend to be very quiet about their ambitions however, their aim will ultimately be to build people up for a fall, then stand back and wait to take their place.

To those Machiavellis out there remember this: “He who wields the dagger never wears the crown.”

P0ROMOTION

ADELAIDE ACRES-The best choice for business and leisure hospitality

Adelaide Acres Conference Centre is the most attractive location and perfect choice for doing business affairs and celebrating various ceremonies confidently. Because of its superior levels of service excellence designed from unique concepts, the Centre has since developed to become the most sought after lodge of choice.

Over the years, Adelaide Acres Conference Centre has continuously gained popularity to become the top travel destination for business meetings, workshops, seminars, parties, dinners, celebrations, family holidays, wedding and honeymoon and congresses.

Traditionally known as Kutsuro (Rabbit) due to roasting of rabbits, the Centre has evolved to take a stylish outlook which has resulted in rising demand from local and international guests.

A spacious joint located just off the Harare-Masvingo highway, Adelaide Acres is perfect getaway for guests seeking for a quieter environment and yet offers close-distance access to the capital city, Harare.

It offers a range of facilities and the best of service, which aim to provide the best comfort for all guests during their stay. These

facilities include the following:

1. AccommodationAdelaide Acres offers best accommodation facilities that have established a reputation for redefining the paradigm of luxury and excellence service amongst leisure resorts around the country and is acknowledged for offering quality and value. Comprised of standard and grass thatched chalets, the rooms are spacious enough for a great stay and offer the comfort that matches the best in the business and leisure.

2. ConferencingThe Centre provides fully baked comprehensive conference services to its valued clients. It offers best facilities for any type of conference-right from commerce and industry to academics. Being conveniently located from the Harare City Centre, the Conference centre is an ideal place for productive business as it combines a learning environment with excellent indoor conference facility for 100 delegates and a garden conference facility for 600 delegates.

Guests are assured of personalised and professional service from the beginning to the end of their conference, meeting, seminar of function.

3. Weddings and Grand Banquets

Adelaide Acres has banqueting halls with state of the art conferencing equipment. The capacity of each hall is up to 100 guests while the garden is another alternative with the capacity to accommodate large gatherings. The place offers wedding, anniversary, graduation, engagements and birthday parties with everything, a venue that makes it magical.

With serene surroundings, luxurious rooms and legendary service, a stay at Adelaide Acres promises all of these benefits and more. Its unforgettable experience.

4. Comprehensive Menus

The Centre serves a variety of Zimbabwean traditional and international mouth-watering and finger-licking menus painstakingly put together to suit every palate.

5. Braai/BarOur Centre provides enjoyable bar and braai services to exceed your expectation. The traditional tsuro braai will reignites enjoyable outing at weekend, evenings and holidays. With ice cold beer you will expect nothing short of fantastic outing.

6. Recreational facilitiesThe Center also provides facilities for recreational sports like basketball, volleyball, soccer, darts and chess which will bring total excitement to our guests.

7. Superior levels of service excellenceThe convenience and grandeur of the stay at Adelaide Acres is further accentuated by trained staff that provide exceptionally attentive, personalised and warm service which is truly an epitome of luxury. The Centre strives to ensure that guests are always satisfied with the services and the facilities provided to them so that every moment spent at the lodge remains a memorable one. Quality, efficient and versatile is the principles of our events team.

Tranquil surroundings, elegant interiors and beautifully landscaped gardens with glancing monkeys create a soothing and intimate ambience.

The Importance of Business Systems

By Tony Fantulla.

It can be very frustrating for a company owner or business manager when an organization has great staff, good products, a strong vision and clear direction, yet the company’s growth is impeded by a plague of simple, recurring mistakes that detract from customer satisfaction and make it near impossible to reach KPIs (key performance indicators).

What is more, it seems that many of these mistakes, or the issues which lead to them, end up on the CEO’s desk, robbing him or her of valuable time that could be spent working on the business rather than in it.

Having great staff, good products and a strong vision for the future are important building blocks for the success of any organization. However, of equal importance is the glue that holds these building blocks together, creating the foundation for success. That glue is business systems.

Every business has systems in place to some degree. Those systems may be passed on from employer to employee via word of mouth or they may exist in the form of a manual or standard operating procedures. They may be as complicated as those used by organizations like OK Mart, where everything is done a specific way, or as simple as a flow chart. Either way, ensuring that business systems are as accurate, comprehensive and up

to date as possible is imperative in ensuring both short- and long-term success… and it is simple. Yet, surprisingly, most business owners avoid it and then miss the secret that systems contain.

Business systemization does not need to be hard or complicated. It starts with simply documenting how things are done. This may seem obvious to some readers but the importance of this task cannot be overstated, even for businesses that may already have some form of business systems in place. It is only when the people involved in specific tasks go back to basics and document everything that they do that holes in existing systems become apparent. For newer businesses, this task is equally important, as this develops the foundation upon which the future success of an organization will rest. Furthermore, it will force owners or managers to think through areas of their business processes which may have previously been addressed in an ad hoc manner.

This task may be referred to as completing a systems manual, operations manual or polices and procedures manual. Whatever it is called, the purpose is to capture the collective intelligence or ‘know how’ of everyone in the business. The why, what, when, where, who and how of the business. The business system!

What are the most important business systems?

The top three critical systems are:

1. Sales system, which should outline how the business finds prospects, presents, quotes and closes sales

2. Delivery or fulfilment system, which details how the product or service is delivered to customers

3. Customer service system, which shows clearly and concisely how the business stays in contact with customers over time

A sales system might begin by outlining, in simple steps, everything from how an inquiry by a potential customer is dealt with and how sales staff should conduct prospecting calls, to how a customer’s needs are assessed, a product or service presented, a sale closed and processed and payment collected.

This may seem simplistic and generic, but this is only the first step in a much larger process. Even for existing systems, it is important to go back to this stage to ensure nothing is missing. Use only simple bullet points to outline each step in the process at this stage. Once completed, this enables the creation of more comprehensive, detailed systems.

This process should be completed for all areas of the business, including:

· Advertising and marketing systems

· Accounts payable, receivable and payroll systems

· Recruiting, hiring, inducting, training and performance

systems

· Customer service systems

· Production, warehousing, inventory and logistics systems

· Safety and quality systems

· Administration, reception and record-keeping systems

Once the basic outline for the procedures in each area of the business has been completed, expand on each of the steps with a paragraph or two on the critical elements involved. It is at this stage that written procedures start to become specific to the company.

This process will also help to identify any additional instructional documents that may be needed for extra detail. Examples of such documents may include ‘How to arrange a meeting with a customer’. It is important to remember that what may seem obvious to an owner or manager may not be obvious to new employees. Part of the reason for creating business systems is to minimize the amount of time spent explaining things, while ensuring continuity of action across staff and departments.

Once completed, there may be five to twenty pages that explain all of the actions required, along with the rules and guidelines which govern the decisions made along the way. Typically, when one system ends, another starts; in the case of sales, the next system is the product/service delivery or fulfillment system.

How to measure the effectiveness of systems

When a system is working, it will be obvious! There should be no customer complaints, no late deliveries and no staff complaining about things or each other. There should be only harmony and productivity in action and all targets being met.

To test systems, try:

· Asking two different staff members to explain a system and comparing their responses against the owner’s or manager’s personal interpretation

· Interviewing customers to determine their satisfaction with the service provided

· Asking customers to explain their experience with the business, both good and bad!

At each step in any system, the effectiveness can be analysed by looking at the inputs and outputs of a step and measuring the result. In many cases, it is necessary to determine what the goals are for certain steps first, in order to determine if the system is delivering upon those targets.

In the sales system for instance, it may be possible to determine the effectiveness of the system by measuring how many new customer proposals end up as sales. If a standard or goal has been set already, the result can be consistently measured to determine if the system requires changing.

Developing systems

Once a library of documented systems is in place, attention can be focused on specific areas within the business with a view to updating the systems governing that area to ensure they deliver set goals.

The implementation of properly documented, effective business systems enable owners and/or managers to reap many additional benefits, some of which will impact on them personally as well as the business. For example, once the systems that they are personally managing are documented, it is possible to begin delegating those tasks, effectively removing themselves from that function without creating chaos in the business.

Once owners are spending less time doing the actual work of the business, they are free to do the most important work of all, commonly referred to as working on it, not in it! This leaves them time to focus on things like: business purpose and cultural development; strategy development and planning; market identification, measurement and product development; development of the team and its collective skills; innovation and improvement; financial planning and investment.

Why develop systems?

Consider that a systemized business, with an up-to-date operations manual, will experience:

· Higher productivity through

staff not carrying out tasks incorrectly or needing to continually ask for confirmation or clarity

· Greater customer satisfaction and confidence resulting in higher average sale process and increased repeat business

· Better accountability of staff through easier measurement of their performance against the systems

· Ease of movement of staff into, out of and around the business

· Less reliance upon key individuals, most of all the owner, as a result of systems being in place and available for training and up-skilling others

· Greater control over the flow of information throughout the business leading to less double handling and resulting in a reduction of errors

Beware of the traps of systemization

In undertaking the literal task of writing documents, creating folders, files, forms and checklists, manuals and all the other contents of a system, another problem may develop: how best to organize and deliver the contents in a logical way to the people who will benefit most – staff.

There are many tools available to assist in controlling the development of a systems manual, such as software applications, for example. This can and will be a low-cost undertaking, provided the tools are researched and the project is planned effectively. Making a plan of just how this whole project will look at the start is critical. Research the available tools and expertise required and evaluate the intended method before jumping in too far.

All the best with your system development; may your business deliver you the life you deserve.

COMMUNICATIONS7 ways to deliver

communications that build trust

Keep your customers happy by keeping dialogue with them simple.

Building relationships with clients and customers has never been more important. Consumers are spoiled for choice. But after bank bail-outs and big business failures, they’re cynical too.

Customers want to feel they matter to your business – that they know you and you know them and they can trust you.

So how does a small business build strong relationships that are built on trust? How can your communications make people more liable to trust what you say, and who you claim to be?

1. Listen to your customers

How often do you ask your customers what they want? Or if the service you’re giving them is spot on?

Give your customers opportunities to talk to you. Listening to customers will help you decide the best methods for communicating with them.

It’s no good using email as your number one form of communication, for example, if your clients would prefer you to text – or they have firewalls that block your e-newsletters. And

you’re only going to know these things if you’re listening.

2. Be honestA lot of small businesses try to fudge just how small they are. It’s pretty common for the websites of one-man-bands to say We work with… or, Our tried and tested processes. Or they say, We are located in… – and the rest of the sentence never mentions the laptop on the kitchen table.

At one level it’s understandable – micro-businesses don’t want to miss out on large customers. But keep firmly in mind that this is the age of the small business. Big corporations are keener than ever to work with small – even tiny – outfits.

So be honest and be confident about who you are and what you offer. You may not offer scale – but you offer flexibility, cost efficiency and a personal touch.

3. Be really honestIf you know it’s only once in a blue moon that a customer’s delivery will arrive next day, don’t promise that it will. You’ll just end up with annoyed and inconvenienced customers.

Instead, write from the heart: Sometimes our deliveries get there overnight, but usually they take two or three days. If you need this product urgently, we can arrange special delivery.

4. Don’t use words to

cover your backsideIf you’re talking about the service you give, never say you’ll “aim to” do something.

We aim to exceed your expectations! is meaningless. It conveys a lack of confidence and commitment – sometimes you will, and sometimes you won’t.

For the best Sunday lunch you’ve ever had is much better than, We aim to give you the best Sunday lunch. That’s because it’s confident, and it’s a promise the customer knows you’re going to have to live up to.

5. Don’t use “official” language when the

going gets toughEvery company, however big or small, has to deal with complaints. Whatever happens, don’t go into official mode when you receive a complaint.

With regard to your above-mentioned letter… is just going to make you sound unhelpful and pompous. I’m sorry you didn’t enjoy your meal with us… is language that’s much more likely to resolve the issue and turn the complainer into a loyal customer.

6. Hide the wiringSo many organisations talk endlessly about their fantastic processes. Usually, the customer doesn’t care so much how a piece of software works – they just want to know how it will

make their lives or businesses easier and more profitable.

It’s just like when you buy a shiny new gadget. You don’t want to see the wiring inside. You just want to see what it does. So don’t talk about the features of what you offer – talk about the benefits.

It’s the same for every business. If you run a cleaning service, the main thing your customers will want to know is that you’ll keep their home or office spic and span, with no fuss at all. The types of products you use and the methods you use to hire staff could be important to a procurement department, but they’re not your headline.

7. Read it out loudRead your communications back out loud to yourself. Do they make you sound like someone you’d trust? Or do they make you sound pompous or evasive? If you sound trustworthy to yourself, there’s a good chance you’re well on the road to building trust with your customers. Joseph Dennis

The top five things a website must have to generate a response

By Philip Brookes

For every successful website on the Internet, there are many more that do not achieve their goals. What is the difference between the few that succeed and the many that do not?

Outlined below are five ‘plain English’ marketing concepts which you should focus on in all of your marketing, including online, to ensure you are taking a holistic and comprehensive view. If you are working with an online marketing specialist, ask her to explain how her ‘geek speak’ fits into this framework.

ExposureThe first step is to generate exposure – this may be on business cards, letter heads, direct mail, online advertising, mass media and outdoor advertising, or any number of other promotional channels. Encourage ‘electronic word of mouth’, in which people pass on the message to their friends.

One key area of exposure is to make sure your website shows up on Google when people search using particular search terms (keywords). The art and science of coming up at the beginning of the Google search results is referred to as search engine optimisation, and it involves a whole range of factors, including naming conventions for your pages, headings, wording of the

content on your page, and (very significantly) getting plenty of links from other high-quality sites to your site. It is well worth speaking to a specialist about this before you start building your website.

AwarenessPromoting a message is not enough – people need to notice it. Your message needs to be clear and prominent. This applies both on your website (where you need to decide what your key message/s are and ensure that they are powerfully presented from your home page) and in your advertisements. If you place ads with Google Adwords, or use banner advertising at other sites, monitor the effectiveness of these and, if you are not getting enough ‘click-throughs’ to your website, review the message presentation to see if you could improve its effectiveness.

UnderstandingYou have advertised and promoted, attracted a large number of viewers to your site, and still you are not getting the results you expected. Maybe people do not understand what you are offering.

An effective website needs to be usable and useful. It needs to:

• Be intuitive and logical to navigate – it is important to place information and navigation in locations where people expect to find it, to label items in ways which make sense to your users, and to avoid clutter and confusion

• Answer the questions potential customers may have – do not bombard them with data they are not interested in, but do include answers to all the questions they are likely to ask, and give them an obvious way to contact you if they have further queries you failed to address

DesireMake them want it! You cannot afford to scrimp on presentation. Get a professional graphic designer and photographer to develop professional imagery and present your website, company and products in a manner that befits the audience you are serving.

Your website is the online representation of your entire company, so keep it maintained, updated and professional.

ActionA call to action is one of the most commonly overlooked features on a website.

Once you have done all the hard work of promoting, attracting, explaining and building desire, do not waste it by putting roadblocks in the way of the purchase.

Make your ‘Buy Now’, ‘Enquire’, ‘Receive Free Sample’ buttons clear and obvious.Philip Brookes is Director of Aktiv Tactics, a marketing communications consultancy working with businesses and not-for-profit organisations in the Asia-Pacific region to “Get Your Message Heard”. He has a particular interest in poverty relief, and using social media and viral marketing techniques to effect social change. You can follow his blog at blog.aktiv.com.au. For more information, visit www.aktiv.com.au

TECHNOLOGY

Cloud computing gets its name from the drawings typically used to describe the Internet. Cloud computing is a new consumption and delivery model for IT services. The concept of cloud computing represents a shift in thought, in that end users need not know the details of a specific technology. The service is fully managed by the provider. Users can consume services at a rate that is set by their particular needs. This on-demand service can be provided at any time.

The term cloud remains a source of confusion for many. And cloud hosting is a concept many business owners are keen to get to grips with if it means saving money and increasing scalability and reliability.

Essentially, rather than owning a physical product, cloud refers to the virtual provision of infrastructure or services. In the case of cloud hosting, providers own, run and maintain enormously powerful servers that businesses pay to access, either to store data or operate their websites. One of the biggest advantages is that the capacity can expand or contract according to a company’s needs.

In addition, a raft of software as a service (SaaS) companies have emerged to offer online

services that replace the need to purchase and run software on internal servers. Cloud hosting and cloud computing services are typically (excluding free SaaS services) paid for and supplied on a metered or subscription basis as opposed to a capital expenditure outlay on hardware, so have an immediate impact on your investment budgeting and monthly accounting.

The two main cloud hosting options are dedicated hosting or a shared web hosting service. The former typically describes the lease of a server which is entirely dedicated to your business, although stored in an external data centre. The latter describes the sharing of server capacity between large numbers of users, which can be used by anyone.

The risks, rewards and realities of switching to cloud hosting

Should your business take the leap from software licences to remote servers and cloud computing?

Efficient, flexible, reliable and less costly. But is cloud computing really all it’s cracked up to be? As a business owner you, like so many others, have probably been drawn to the cloud like a moth to a flickering light.

For years tradition has dictated that businesses of a certain size buy a server, put it in a cupboard or small room somewhere in the office, and then backup the data on tapes each day. Your email needs have been served by a series of software licenses. And

you’ve paid a hosting company to ensure your website doesn’t go down. Sound familiar?

The emergence of cloud hosting appears to mark the demise of ‘business as usual’. For small businesses, the advantages of cloud hosting are distinct – no costly software licenses, the flexibility to work from anywhere, global collaboration and a reduced hardware bill. Like gas, electricity and water, for many cloud computing is another utility.

But what of the security risks? And how do you manage cashflow and scaling your needs up and down as activity demands? Will you also forgo a level of control, such as being forced to deal with the impact updated software used by your cloud hosting company may have on other programs you run? Throw in the jargon and the risks and realities are key factors alongside the obvious rewards.

The Benefits of Cloud Computing

According to International Data Corporation (IDC), “The proliferation of devices, compliance, improved systems performance, online commerce and increased replication to secondary or backup sites is contributing to an annual doubling of the amount of information transmitted over the Internet.” The cost of dealing with this amount of data is something that companies must address. In today’s economy, companies are looking at any cost-saving measures, and the bottom line is that cloud

computing provides much greater flexibility than previous computing models.

The benefits of cloud computing are many. One is reduced cost, since you pay as you go. Other benefits are the portability of the application is that users can work from home, work, or at client locations. This increased mobility means employees can access information anywhere they are. There is also the ability of cloud computing to free-up IT workers who may have been occupied performing updates, installing patches, or providing application support.

Benefits of cloud hosting

Achieve economies of scale – increase volume output or productivity with fewer people. Your cost per unit, project or product plummets.

Reduce spending on technology infrastructure. Maintain easy access to your information with minimal upfront spending. Pay as you go (weekly, quarterly or yearly), based on demand.

Globalize your workforce on the cheap. People worldwide can access the cloud, provided they have an Internet connection.

Streamline processes. Get more work done in less time with less people.

Reduce capital costs. There’s no need to spend big money on hardware, software or licensing fees.

Improve accessibility. You have

access anytime, anywhere, making your life so much easier!

Monitor projects more effectively. Stay within budget and ahead of completion cycle times.

Less personnel training is needed. It takes fewer people to do more work on a cloud, with a minimal learning curve on hardware and software issues.

Minimize licensing new software. Stretch and grow without the need to buy expensive software licenses or programs.

Improve flexibility. You can change direction without serious “people” or “financial” issues at stake.

Security issues and points to consider when

cloud hostingWhile cost and ease of use are two great benefits of cloud computing, there are significant security concerns that need to be addressed when considering moving critical applications and sensitive data to public and shared cloud environments. To address these concerns, the cloud provider must develop sufficient controls to provide the same or a greater level of security than the organization would have if the cloud were not used. Listed here are ten items to review when considering cloud computing.

1.Where’s the data?

Different countries have different

requirements and controls placed on access. Because your data is in the cloud, you may not realize that the data must reside in a physical location. Your cloud provider should agree in writing to provide the level of security required for your customers.

2.Who has access?

Access control is a key concern, because insider attacks are a huge risk. A potential hacker is someone who has been entrusted with approved access to the server. Anyone considering using the cloud needs to look at who is managing their data and what types of controls are applied to these individuals.

3. What are your regulatory requirements?

Organizations operating in the different countries have many regulatory requirements that they must abide by (e.g., ISO 27002, Safe Harbor, ITIL, and COBIT). You must ensure that your cloud provider is able to meet these requirements and is willing to undergo certification, accreditation, and review.

4. Do you have the right to audit?

This particular item is no small matter; the cloud provider should agree in writing to the terms of audit.

5. What type of training does the provider offer their employees?

This is actually a rather important item, because people will always be the weakest link in security. Knowing how your provider trains their employees

is an important item to review.

6. What type of data classification system does the provider use?

Questions you should be concerned with here include: Is the data classified? How is your data separated from other users? Encryption should also be discussed. Is it being used while the data is at rest and in transit? You will also want to know what type of encryption is being used. As an example, there is a big difference between WEP and WPA2.

7. What are the service level agreement (SLA) terms?

The SLA serves as a contracted level of guaranteed service between the cloud provider and the customer that specifies what level of services will be provided.

8. What is the long-term viability of the provider?

How long has the cloud provider been in business and what is their track record. If they go out of business, what happens to your data? Will your data be returned, and if so, in what format? As an example, in 2007, online storage service MediaMax went out of business following a system administration error that deleted active customer data. The failed company left behind unhappy users and focused concern on the reliability of cloud computing.

9. What happens if there is a security breach?

If a security incident occurs, what support will you receive

from the cloud provider? While many providers promote their services as being unhackable, cloud-based services are an attractive target to hackers.

10. What is the disaster recovery/business continuity plan (DR/BCP)?

While you may not know the physical location of your services, it is physically located somewhere. All physical locations face threats such as fire, storms, natural disasters, and loss of power. In case of any of these events, how will the cloud provider respond, and what guarantee of continued services are they promising? As an example, in February 2009, Nokia’s Contacts On Ovi servers crashed. The last reliable backup that Nokia could recover was dated January 23rd, meaning anything synced and stored by users between January 23rd and February 9th was lost completely.

Even basic services such as e-mail require a thorough review before moving the service to the cloud. While some organizations are starting to move their e-mail to cloud services hosted by Gmail, Yahoo e-mail, and others,there are issues to consider. In February 2009, Gmail reported an outage that affected its EU users. In January 2010, it was reported that Gmail had been targeted by attackers seeking to gain access to Chinese human rights activists. It was further reported by MSNBC that foreign correspondents may have been targeted. Although these services have many controls

built in, it is not impossible for them to be compromised.

Questions that companies need to ask before outsourcing even something as basic as e-mail include:

• Can you function with no e-mail?

• How easy would it be to migrate to another e-mail provider?

•What is your email retention policy, and do you have a legal requirement to keep your email for a specific amount of time?

• Would your clients be concerned that you store email with sensitive information on a third-party server?

Cloud Computing Attacks

As more companies move to cloud computing, look for hackers to follow. Some of the potential attack vectors criminals may attempt include:

•Denial of Service (DoS) attacks -

Some security professionals have argued that the cloud is more vulnerable to DoS attacks, because it is shared by many users, which makes DoS attacks much more damaging. Twitter suffered a devastating DoS attack during 2009.

• Side Channel attacks –An attacker could attempt to compromise the cloud by placing a malicious virtual machine in close proximity to a target cloud server and then launching a side channel attack.

• Authentication attacks –

Authentication is a weak point in hosted and virtual services and is frequently targeted. There are many different ways to authenticate users; for example, based on what a person knows, has, or is. The mechanisms used to secure the authentication process and the methods used are a frequent target of attackers.

•Man-in-the-middle cryptographic attacks –This attack is carried out when an attacker places himself between two users. Anytime attackers can place themselves in the communication’s path, there is the possibility that they can intercept and modify communications.

ConclusionCloud computing offers real benefits to companies seeking a competitive edge in today’s economy. Many more providers are moving into this area, and the competition is driving prices even lower. Attractive pricing,the ability to free up staff for other duties, and the ability to pay for “as needed” services will continue to drive more businesses to consider cloud computing. The decision to move to cloud-based services should fit into the organization’s overall corporate objectives. Before any services are moved to the cloud, the organization’s senior management should ensure such actions are consistent with their strategic plans and meet acceptance criteria that address the ten items discussed in this article.

Just as there are advantages to cloud computing, there are also several key security issues to keep in mind.One such concern is that cloud computing blurs the natural perimeter between the protected inside the hostile outside. The security of any cloud-based services must be closely reviewed to understand what protections your information has. There is also the issue of availability. This availability could be jeopardized by a denial of service or by the service provider suffering a failure or going out of business.

AFRICAElumelu calls on African entrepreneurs to take

business to BRICSJOHANNESBURG - During a panel discussion held at the first BRICS Business Council meeting in Johannesburg this week, African business leader Tony O Elumelu, Chairman of Heirs Holdings, called on the BRICS business leaders to make room for African entrepreneurs looking to expand their businesses beyond the continent to the BRICS countries.

In front of an influential audience of business leaders from BRICS and 19 other African countries, Elumelu spoke of the need for mutually beneficial partnerships between African countries and the BRICS nations: “A new crop of African entrepreneurs are emerging who have ambitions beyond the continent. They should be investing in the BRICS countries in the same way that BRICS are investing in Africa – this relationship needs to go both ways.”

Elumelu was speaking at a panel session on “Specific measures and initiatives to increase business, trade, manufacturing, and investment ties between the BRICS countries and Africa”. The discussion, which was moderated by Donald Kaberuka, President of the African Development Bank, also provided valuable insights from other prominent African business leaders, including Mo Ibrahim, Isabella Dos Santos and Johann Rupert.

Kaberuka highlighted the need to improve infrastructure on the continent, stating that businesses could only grow if the infrastructure gap was addressed. Angolan investor Isabella Dos Santos stressed the need for investment in ‘soft infrastructure’ stating broadband technology would have a transformative effective similar to mobile technology in Africa.

Mo Ibrahim livened up the audience with his delivery, but behind the jokes were very real and critical messages about Africa’s poor global image and the importance of governance. He talked about his foundation’s governance index which was one of the most comprehensive in the world, measuring 88 parameters including transparency corruption, education and health. His final message to investors was; “Don’t come to Africa and help, come and make money because the highest return on investment is in Africa. Enjoy making money in Africa but please behave”.

South African Johann Rupert, Chairman of Richemont and Remgro talked about the critical things he looked for as an investor - regardless of where his investment was located. He listed the four critical areas as: the rule of law, independence of the judiciary, security of property and transparency of markets.

Elumelu summed up the general consensus of the BRICS business council meeting when he concluded that: “As African business leaders, and

as Africapitalists, we agree that we have amongst us enough resources to make things happen in Africa. We must share the opportunities on the continent. There are enough of us to make a difference. We need to work together to find ways of increasing trade and investment ties between the BRICS nations and Africa.”

- APO

WORLDAPEC Leaders Urge Fewer Protectionist

Policies to Boost Growth

Asia-Pacific leaders are calling for vigilance against protectionism as economic growth slows in parts of the region and completion of a 12-nation trade pact looks set to be delayed further.

Asia-Pacific Economic Cooperation economies must also improve infrastructure to spur trade and investment, Indonesian President Susilo Bambang Yudhoyono said in a speech in Bali to about 1,000 business executives. In Malaysia, Prime Minister Najib Razak said the year-end deadline for the Trans-Pacific Partnership may not be met.

Policy makers are seeking to support their economies via new markets for goods and services as an uneven global recovery and volatility in financial markets constrain growth. Companies should encourage governments to curb barriers to trade instead of asking for measures to safeguard their industries from competition, Singapore Prime Minister Lee Hsien Loong said.

“Every business lobbies their government in order to look after their interests,” Lee told

company officials in Bali. “It is important to maintain that public support for openness and integration because unless you have that -- if we all close ourselves up, or even hinder the process of trading and doing business with one another -- I think we are just going to make things worse for all the countries.”

Global growth will probably be slower and less balanced than desired, as the world economy is too weak and “risks remain tilted to the downside,” trade and foreign ministers from the 21-member grouping said in a statement yesterday.

TPP TractionA slowdown in China and India is reverberating across the region with the Asian Development Bank forecasting expansion at a four-year low in 2013, putting pressure on policy makers to bolster their economies. The Group of 20 countries repeated their concern last month that stimulus pullback in developed nations may prove damaging to global markets.

TPP governments are seeking momentum during the Bali meetings on the pact as concessions sought by countries hinder progress in completing negotiations. The accord, which involves countries such as the U.S., Australia, Japan, Malaysia and Vietnam, would link an area with about $28 trillion in annual economic output.

Malaysia’s Najib said today the end of 2013 deadline is a “very

tight time line” and leaders will discuss if it is feasible. U.S. Trade Representative Michael Froman said yesterday the “finish line is in sight” and TPP officials are trying very hard to complete the deal this year.

All the TPP countries are members of APEC, set up in 1989 to advance free trade and investment in an area that accounts for half of the world’s total gross domestic product and 45 percent of global commerce.

‘Vital Chance’“With markets struggling to emerge from a devastating global recession, we need the jobs, growth and economic opportunity a free trade agreement could provide,” Jay Timmons, president of the Washington-based National Association of Manufacturers, and Phil O’Reilly, chief executive of Business New Zealand, said in a joint commentary on TPP. “With every month that passes without a deal, we miss vital chances to boost trade and investment.”

APEC ministers said yesterday they will recommend their leaders extend through the end of 2016 a commitment to combat protectionist measures and roll back such policies that exist.

“We reaffirmed our commitment to keep markets open and to refrain from raising new barriers to investment or to trade in goods and services, imposing new export restrictions, or implementing WTO-inconsistent

measures in all areas, including those that stimulate exports,” the ministers said.

Infrastructure ChallengeSixty-eight percent of chief executive officers in the Asia-Pacific region plan to increase investments next year, with China, the U.S. and Australia among top destinations over the next three to five years, a PricewaterhouseCoopers report showed.

“We need to develop more and better infrastructure as an essential element for our connectivity,” Yudhoyono said today. “This will of course help not only to facilitate trade and investment, but also boost job creation. APEC needs to tackle inefficiency in the supply chain. We have to make it easier, cheaper, and faster to conduct trade in goods and services across borders.” -Broombeg

China logs best growth so far this year

China’s gross domestic product (GDP) rose 7.8 percent on year in the third quarter, the National Bureau of Statistics reported on Friday, up from 7.5 percent in the second quarter and in line with expectations.

“The uptick in growth reflects both better exports and solid domestic demand, although the easing of industrial output growth in September indicates that the recovery is tepid,” said Louis Kuijs, chief China economist at RBS.

Industrial output growth moderated to 10.2 percent on year in September, compared with 10.4 percent in August. Still, Kuijs remains upbeat on his outlook for the world’s second-largest economy.

“We expect global demand momentum to pick up as the economic upturn in the U.S. and Europe takes hold and see this as key to our growth projection for China,” he said, forecasting full-year growth of 7.7 percent for 2013, and 8.2 percent in 2014.

“Against this more constructive global backdrop, and with domestic demand momentum remaining solid, we expect GDP growth to be above the government’s ‘bottom line’ in 2014, thus alleviating pressures to stimulate the economy,” he added. Earlier this year, Premier Li Keqiang identified

7 percent as the “bottom line” for growth, local media reported, saying that this this threshold must not be breached.

With the impact of government stimulus fading, many are questioning whether growth levels posted in the third quarter will be sustainable. In late-July, Beijing unveiled a package of measures to boost the economy, which included eliminating taxes on small businesses, reducing costs for exporters and lining up funds for the construction of railways.

According to Ting Lu, chief China economist at Bank of America Merrill Lynch, on a quarterly basis, growth likely peaked in the July-to-September period. In the third quarter, growth rose 2.2 percent on quarter, up from 1.9 percent in the previous three months.

However, in year-on-year terms, he notes that growth could rebound again, to around 7.8-8.0 percent, in the first half of 2014 on a low comparison base.

Raymond Yeung, senior economist at ANZ believes it’s too early to conclude whether economic expansion in the mainland has peaked.

“We expect a slowdown in the fourth quarter, but it’s too premature to conclude a decline of growth momentum. The Third Plenary Session is coming up in November - while we don’t expect any major stimulus to expand growth, they are undergoing reforms that will help China growth in a more sustainable manner,” he said.

Yeung, however, notes there are two main risks that lie ahead for the mainland economy: tight monetary policy and a strong yuan.

With credit growth remaining

robust in the recent months, the People’s Bank of China could tighten liquidity if credit expands in an undesirable manner, he said. On the currency front, renewed strength in the yuan could hurt the country’s export competitiveness and dampen some of the growth momentum.

Modest declines in other economic indicators released on Friday could add to uncertainty. Fixed asset investment growth softened to 20.2 percent on year in the first nine months of 2013, from 20.3 percent in the first eight months of the year. Retail sales growth, meantime, edged down to 13.3 percent on year, from 13.4 percent in the previous month.

— CNBC’s Ansuya Harjani