The ManicaPost
Nathaniel Mlambo Business Zone
THE Business Zone enters its second edition. This week, I will focus on the element of growth in small and informal business operations in particular artisanal miners, makorokoza.
Last week on the Business Zone on Diamond FM, I had an exciting interview with Maxwell Muzaruwetu, an accountant, but most importantly a member of the Manicaland Chamber of SMEs.
The focus centred on key issues that artisanal miners need to adopt to grow and contribute more to the economy.
The sector by the way is already contributing more gold to the Reserve Bank of Zimbabwe, with the Ministry of Mines and Mining Development saying in 2015 artisanal miners contributed 9,7 tonnes of gold up from 7,5 tonnes in 2014. This year gold deliveries are expected to reach 10 tonnes.
The figures speak for themselves and I don’t need to add detail, lest I spoil the art.
However, there is a culture of complacency within the informal sector which is centred on lack of innovation for growth.
A practical example, is our City of Mutare business outlook. I grew up in Mutare, it is largely still the same since 1985 if you ask me.
Most medium-scale business operations down town have not grown or rather have absolutely ignored employing the art of innovation towards growth.
The same applies to our artisanal miners, we know them as magweja or makorokoza, right! I have heard the term kugweja being applied by some communities in the use of hard labour in extracting something usually water from a borehole pump. Its hard labour at times especially when the water table is low. One has to pump and sweat until water starts trickling out of the borehole.
Usually one rushes to quench their thirst and temporarily forgets to mind the pump handle. The scenario is what we see in the world of artisanal miners. Its hard work with enticing rewards and usually when they get a few grammes of gold they immediately abandon their posts to quench their thirst, in all forms.
Well, artisanal miners need to move away from this and grow their businesses.
Here are some of the key facets they need to adopt to grow which Maxwell and I shared last week.
1. Investment in proper
small-scale mining
equipment
Most artisanal miners don’t have the equipment for sustainable mining and find themselves stuck when they can’t continue mining beyond the surface. In most cases, they engage in dangerous actions that always result in loss of life.
2. Investment in training and innovation
The lack of training for artisanal miners, is a limitation to their ability to contribute more to the economy. They should get together and acquire the basic skills of mining. Learning the proper use of handling chemicals, tools, mining skills that use less time and land use management becomes vital.
3. Financial management and costing
Without proper financial management, a project is bound to fail, there is no doubt. We have seen many diamond and gold dealers who appeared to have made it but in no time we saw their fortunes crumbling. The maths for this is simple: (zero budget) + (zero discipline) = zero bank balance.
4. Investment in savings and post mining life
My last point is that we all grow old, get sick, or possibly incur injuries that will stop us from working. Our lives should not end there, we need to prepare through structuring our lives, invest in pension schemes, property and if you own a small mine for example, form a business entity that will perpetuate even beyond your grave for future generations.
Readers, that is all from my desk this week and artisanal miners, it is time to innovate and grow!
Nathaniel Mlambo is a journalist and training content producer:
Feedback email: Nathaniel. [email protected]
