In a compelling address at the MCCI Energy and Investment Conference 2024, Zunaid Moti, a prominent businessman, outlined three transformative lessons from Zimbabwe that could significantly enhance South Africa’s investment landscape. Speaking to an audience of government officials, industry leaders, and business figures, Moti drew on his successful experiences with African Chrome Fields (ACF) in Zimbabwe to highlight strategies that could revitalize South Africa’s economic prospects.
Embracing Public-Private Partnerships
Moti underscored the pivotal role of Public-Private Partnerships (PPPs) in ACF’s success, which produces 30,000 tonnes of high-grade chromium concentrate monthly and employs over 600 workers. He suggested that by encouraging such collaborations, South Africa could mitigate investment risks and boost investor confidence. “Investors are often hesitant about African markets due to concerns over security and returns,” Moti explained. “However, PPPs can bridge this gap by sharing risks and rewards between private entities and government bodies.”
As a practical step, he proposed that South Africa’s government could underwrite portions of investments in critical infrastructure projects like power plants. This approach would not only lower private investors’ risks but also ensure shared returns with the government, fostering mutual benefits.
Implementing the Build-Operate-Transfer Model
Moti advocated for the adoption of the Build-Operate-Transfer (BOT) model to address South Africa’s infrastructure and energy challenges without straining public finances. He highlighted the BOT model’s success in Zimbabwe, where private companies finance, construct, and operate infrastructure projects before eventually transferring ownership to the government. “This model ensures that both the private sector and the government benefit, while the public sector gains valuable infrastructure,” Moti stated.
Promoting Broad-Based Empowerment
Addressing empowerment issues, Moti criticized the limited impact of South Africa’s black economic empowerment programs, which he argued have largely benefited an elite few. Instead, he called for initiatives that uplift communities at the grassroots level. “Investors seek full ownership of their investments, and rightfully so, as it’s their capital at risk,” he noted.
Moti shared an empowerment model implemented in Zimbabwe that involves small-scale miners in the production capacity of his mines. This initiative, agreed upon with the Zimbabwean government, reserves 25% of a mine’s production capacity for small-scale miners, allowing them to process raw materials and share profits. This approach empowers miners by enhancing their income and enabling them to reinvest in their operations.
“This model creates a sustainable and impactful form of empowerment, fostering a sense of ownership among beneficiaries,” Moti explained. “By integrating small-scale operators into value chains, we can build a more inclusive economy and drive widespread socio-economic development.”
In conclusion, Moti urged South Africa to draw inspiration from Zimbabwe’s pragmatic strategies to create an investment-friendly environment that fuels growth and empowerment. His insights provide a roadmap for South Africa to harness the power of partnerships, innovative models, and broad-based empowerment to unlock its economic potential.
