As Zimbabweans witnessed the crumbling of the billion-dollar
business empire of Harare business tycoon, Roger Boka, focus soon
shifted to whether there were any rich blacks left, after the ailing 52-
year old tycoon.
“Boka is just one among thousands of indigenous businessmen whose
empires have collapsed,” says the minister of state for enterprises,
Cephas Msipa.
He sees the fall of Boka as presenting a serious challenge to other
black entrepreneurs.
“There are many blacks who are doing very well-Boka was high profile,
but many more are succeeding quietly.”
He gave the example of farmer Tobias Musariri, who holds the local
Bedford vehicles franchise, and Paddy Zhanda, owner of Shingai Business
Machines.
Among other black-run businesses doing well, he said, were National
Merchant Bank, Commercial Bank of Zimbabwe (CBZ), and Kingdom
Securities, a Harare-based finance house.
Preliminary CBZ figures published in March this year showed profit
before tax at Z$108,7 million-up 29% over the 1996 figure of Z$ 84
million.
Boka, seen by many as a role model for black Zimbabwean business
persons, send shivers down the spines of those in the banking sector,
following the crash of his United Merchant Bank (UMB).
The bank’s collapse, which has been widely attributed to poor lending
policies, has cast grave doubts on the ability of the indigenisation
programme to economically empower black Zimbabweans in the future.
As a result, Boka, his senior managers, as well as his plethora of
companies which include the Z$200 million Boka Tobacco Auction Floors-
which he says is the largest in the world-were specified by the
government.
Ona Jirira, of the Institute of Development Studies, when trying to
draw parallels between viable indigenous enterprises, could only compare
UMB unfavourably with the Commercial Bank of Zimbabwe.
“Is the CBZ not successful? We should look at what is within its
system that is making it successful,” said Jirira, who went on to
attribute Boka’s fall to financial constraints, which she asserted could
have been engineered by the ‘pull-him-down’ mentality prevalent among
blacks.
However, as our liberalised economy becomes intensely competitive,
she says: “It’s those who know the markets who will survive. But the
fall of Boka is a lesson that Zimbabwe should learn from. It must not be
seen as representing the failure of blacks in general.”
Although the fall of Boka’s bank is being seen by independent
observers as a severe blow to the economic indigenisation process, some
analysts are viewing the whole fiasco as a “blessing in disguise”.
“This incident will strengthen indigenisation,” CBZ boss, Gideon
Gono, told a recent meeting called to review the effects of UMB’s
dramatic fall.
“We were content before with stabbing each other in the back, but we
must now rise above our individual positions and look at indigenisation
as a national perspective.”
Msipa warns that blacks should refrain from rushing into business,
without the requisite back-up managerial skills.
“This is why there is such a high rate of failure,” he said. ‘There
are many Zimbabwean businesses folding up, and the question should be:
‘What do we do about it?’ rather than for us to view this individual
case of Boka as indicating the failure of black businesses in general.
“To me, what is more serious and shattering is when a business falls
and its owner is left with nothing. At least Boka still has a house. The
question is: what should be done about those who become homeless?”
Msipa says government would like to see more black Zimbabwean con-
sortiums being set up because it has been proved that those who come
together, become successful.
There is also need for would-be business people to strengthen their
entrepreneurial skills and to clearly understand that the current macro-
economic environment is unfavourable to success, due to the prevailing
high interest and inflation rates.
Indigenous Business Development Centre president, Ben Mucheche,
supports government moves to rescue Boka.
Mucheche says that what people should know is that Boka’s case is not
an unusual one as many big businesses have, in the past, collapsed, and
some were only rescued through state finance, such as Cone Textiles.
Nigel Chanakira, managing director of Kingdom Securities-who has
ambitions to start his own merchant bank-believes that there are just as
many competent blacks as there are whites.
“But once problems start being interpreted along racial lines, I say
’shame’. People should be judged on competence and not on colour.”
According to Msipa, the indigenisation programme is still on course,
with the programme of action recently launched by government expected to
be implemented in two months time.
The programme of action involves examining legislation that impedes
the indigenisation process with a view to amending or repealing it.
Against this background, Msipa cautioned that it was still too early
to dismiss the black economic empowerment thrust as utopian, adding that
the drive was a process and not an event, and was therefore bound to
take time.
However, it remains to be seen whether any lessons were indeed drawn
from the collapse of Boka’s UMB, as more blacks aspire to enter the
competitive, high stakes corporate business world.-Ziana.