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Crowd funding: A case for innovative retooling strategies towards increased trade under AfCFTA

BY GIFT NYONGO Zimbabwe can be said to have turned the corner, from a hopeless case three years ago, to one of the most promising economies in the sub-region. As confirmed by one of Zimbabwe’s leading economists, Eddie Cross in an interview on ZBC-TV, the Transitional Stabilisation Program (TSP) provided firm ground for growth through righting macro-economic fundamentals such as a stable exchange rate, receding inflation and much needed economic reforms like ease of doing business, consumer protection laws and more. With these fundamentals firmly in place, focus is now on consolidating these gains under the National Development Strategy One (NDS1). Thus, this submission proposes, if not already under implementation, a homegrown funding mechanism for Zimbabwean businesses based on co-operation and guided by the country’s national interest and vision which are tied to the United Nations Millennium Development Goals (MDGs) as well as the AU’s Agenda 2063. As with the recently launched African Continental Free Trade Area (AfCFTA), which is a culmination of the continent’s long struggle for self-help, Zimbabwe as a country needs to also consider looking from within itself for funding the anticipated economic growth going forward. Notwithstanding anti-Africa’s development rhetoric from individuals like Howard Nichols (YouTube, 2020), the AfCFTA is expected to propel the continent towards economic prosperity and independence by creating the biggest market by population (1,2 billion) and GDP (US$2,5 trillion) (UNCTAD, 2020) and, therefore, Zimbabwe as a member needs to get its systems ready for what lies ahead. Accordingly some of the funding strategies may derive from local Zimbabwean economic practices that have long helped especially, women to create wealth for themselves and their families. The practice is variously known as mukando, round or party and growing up in Zimbabwe, many will testify to being treated to monthly mini Christmas parties as our mothers in many a ghetto gathered to partake in this money sharing venture. Essentially, this was crowd funding akin to GCMeans’ collective capitalism. According to Means(1957), collective capitalism entails co-operation among economic players for common gain while maintaining individual ownership of a business. Among countries that have employed collective capitalism is Japan after WWII with remarkable results despite criticism of the strategy. Reflecting on this mukando practice which was and probably still is widespread in Zimbabwean communities, one gets the sense that the idea, if adopted by business, may work to mitigate some of the retooling challenges that bewilder the local manufacturing sector, itself key to Zimbabwe becoming a trading giant on the international market. International trade is characterised by competitiveness and world class standards (UNCTAD, 2020). Thus, Zimbabwean manufacturers need to up the ante in producing world-class goods and services and become competitive on the international market. But, this can only be achieved if funding for retooling

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