Chapter 4: A good income statement on a bad balance sheet will not go far: Birthing a Mega Economy

As Africans, we are not lazy: we work hard and have the capac­ity to produce a great surplus of food, but we have no market to sell to

By Dr Tich Tanyanyiwa

I had some conversations with a man that I call a “Joseph” of our time. This is a man who has been in the marketplace as a high level consultant speaking into the development of African economies. I have inserted his brief Biography at the end of the chapter.

I found the conversation very thought provoking and I would like to put it in this section of the book to further validate why I believe the content of this book is relevant for such a time as this.

I felt I needed to insert it here for three reasons:

1. He speaks both as a man sent from God and as an expert in the marketplace whose papers have been used by the top developmen­tal organisations of the world. His foundation is not just intellectual or academic even though he holds a Doctorate in Business Administration.

2. He speaks not as a beggar seeking to get help from investors but sees that the solution to Africa is the Africans themselves.

3. Dr Mahove also validates that the kind of conversation carried in this book is what is needed across the borders if we are to see accelerated eco­nomic development.

See an excerpt from his thesis that will help you see that as Africa, we are headed in the right direction if we maintain our thinking at these levels.

Catalyse a dorman industry

The implications for positive social change may include the potential to enable small agribusiness seed company leaders to develop and adopt better BMIs. Agriculture is the backbone of African economies (Kansiime & Masten­broek, 2016). Africa is home to 12% of the global population and will be home to 31% of the global population by 2050 (United Nations, 2016).

Smallholder farmers make up 70% of Africa’s population and contribute 80% of the food consumed in Africa (AGRA, 2016).

The improvement of agribusiness seed com­panies’ BMs could catalyze developing a dormant industry on which many people in Africa derive their livelihoods. Improving the BMIs of agribusiness seed companies may lead to food and nutrition security for African families currently living in poverty.

(Dr Golden Mahove Walden University April 2019)­cle=8038&context=dissertations

Our conversation was built around the subjection of economic de­velopment for the African continent. I asked four simple questions that helped get the discussion going.

What do you see as the real crises?
Where do you see Africa in the future?
What are the practical steps we can take to get there?
What futuristic thoughts should we adopt as the church?
What do you see as the real crises?

As a continent we are struggling in fostering regional trade. We need to work on three critical areas:

Relationship and
Revitalising industry

Once we master these we need to make a transition and move from agrarian economy to industrial ICT economy, as you can see the world is now moving into the fourth industrial revolution. Africa is yet to catch up.

If we can incorporate our strengths in agriculture with modern trends common with the fourth industrial revolution we will redefine our econo­mies.

Where do you see Africa in the future?

As Africans, we are not lazy people, we work hard and have the capac­ity to produce a great surplus of food but we have no market to sell to.

We produce great volumes of products yet we import much food because of a lack of infrastructure. Then he quoted a statement that has been made common in the political arena “The system is not broken but designed that way”.

Meaning it was by design that Africa cannot produce enough food to feed its people, it was by design to ensure that Africa is a market for prod­ucts coming in from the west.

Africa is being forced to jump from focusing on agriculture to being a part of the 4th industrial revolution in the area of agriculture. Lack of industrial infrastructure is hindering our ability to turn materials to products but as we embrace the fourth industrial revolution we will see this shifting.

As long as Africa is steeped in consumerism the west is comfortable. Even the investors we are so desperately crying out for are not keen on seeing change at any level. Investment is outward focused as is seen in the economic states of many African countries. They invest to take out not to change the country they are investing in.

Not fit for purpose

The best way to bring lasting change is to become investors into our own countries and our continent. Foreign aid came to give relief not to power up the economies.

We cannot live off aid and relief; we have to build lasting economies. The economic systems that we have are not fit for purpose, we have to review them and create our own models that work for us, not what we adopted from those that have no vested interest in the African people.

For ex­ample, Malawi may find it difficult to send groundnuts to South Africa because of tariffs, unfriendly borders, stringent regulations on moving agricultural produce across borders, customs’ processes and unreliable infrastructure, while Argentina finds it easier to bring in products to Af­rica.

A truck may travel from South Africa to Malawi with products but has no load to bring back from Malawi thereby making it costly to trans­port products in the region. Intra-regional trade is less than 25% in Af­rica meaning that more than 75% of the products we import come from outside Africa, yet the exact same products are in abundance in African countries and are of a better quality.

Our regional economic systems are not working well together and this is costing us. Policies have been put in place but capacity is not there to deliver what is planned, for example, ECOWAS has great systems that can change trade in Africa but they do not have the capacity to imple­ment the policies.

What futuristic thoughts should we adopt as the church? 

There is great hope for Africa. Africa is the youngest continent. We have many young people that are innovators whose minds have been exposed to the ethos of the fourth industrial revolution. Young minds that have no limitations of the past like their predecessors.

Our young­est countries are over 15 years old

That means these young people have no memory of war or oppression. They have no memory of liberation struggles and calling another person “Baas” These young people carry the future of our continent and we have to invest into their growth and discovery of their hidden potential.

We also have many people in the diaspora that are still focused on home, they are still keen on coming home one day and making use of their skills and knowledge to impact their continent.

These young people have acquired great skills that shall be a help to Africa. Of note is that those in the diaspora are sending money to their home countries and this makes a significant impact on the economic environment.

Remittances are higher than Official Development Assistance (ODA) -that is money from donors to developing countries. This means if there were structured ways to ad­minister these funds for development coupled with integrity in those in leadership we would see a significant shift in our development.

A good income statement, but a bad balancesheet will not go far

We need to manage our debt to GDP ratio; we cannot be borrowing more than we can produce. If we continue borrowing we will dig a hole that we will not be able to get out of.

We must focus on lifting our GDPs and reducing our debts. Countries with high debt to GDP ratios will al­ways work to pay off their debts, therefore nothing will go towards devel­opment thus creating a vicious cycle of toil. A good income statement but a bad balance sheet will not go far.

Britain, America and China are threatened by the formation of the free trade area as this would mean they now would have to negotiate with a regional block and not just a country.

That means the negotiating table has turned because we can no longer give away our products at giveaway prices. We will own the value chains that bring out products and not just raw materials.

On a prophetic note

We have strong spiritual foundations that can build communities. Africa is a continent that has always loved God and this is a positive.

There is however a need to rethink church and what is taught from the pulpit. We need to move the church from consumerism as this translates from one person to the nation.

Many messages in church are encourag­ing consumerism and not production, we have people that are believing God for the latest cars so they can look good, but they are not working at manufacturing the cars. We have to create producers not consumers.

Where are tithes going? What are we using the tithes for? Why not cre­ate a bank for churches and their members and we channel resources into developing our communities.

We must have impact in the marketplace and not just within the church. We must not be deceived to think the church is about pity, it is about impact. We must move from just church cells and have marketplace empowerment sessions that empower our members to take over the marketplace aggressively.

What are the practical steps we can take to get there?

Five things we need to think on

What do you have in your hand?

Start with what is there and build from there. The question we need to ask is “What do you have in your house and how do you use it to devel­op your continent. For example, we could develop the world’s largest power plant in DRC using the water resources they have and solve Af­rica’s power supply issues.

Trade Amongst Ourselves

We need to boost trade amongst our countries and the economic blocks we have put in place. That way we will have markets that will absorb what we manufacture. We have a great example from the Munhumutapa Kingdom and the Mapungubwe Kingdom.

These were powerful economic centres that were agrarian but were also involved in mining.

Borders forced on us by our former oppressors that sought to divide and weaken us divided us, it is time to dissolve the borders and create markets for our products.

Find ways to unleash the youth

Do not force fit the youth into jobs, let us find out what excites them and work from there. Let us feed their natural energy and channel that into developing a better Africa.

Change the education system

Introduce languages that enhance productive regional trade instead of just doing things the same old way. Introduce courses that are relevant to what we desire as outcomes for Africa, not for our former oppressors.

Harness the potential power of the diaspora

Build Universities that will make use of the skills learnt in the diaspora, all people in the diaspora could be harnessed for developing our econ­omies. This will enable infrastructural development.

We need to find convenient ways to move money from the diaspora and move from tedious banking and cash movement processes to digital money movement. The Zimbabwe cashless system can be an example that an economy can still move forward without cash.

Thank you to Dr Golden Mahove for the wisdom shared. We believe this chapter will bless many lives as they read this book.

This is indeed a loaded chapter that needs to be read by our political leaders so they can hear the word of the Lord. I have sensed such a strong prophetic flow as I wrote this book. God is speaking very clearly and very directly to His people and

He wants us to give heed to the Prophetic word. As we do we will see the glory of God in our nations. The bottom line is land is a vital part of the plan and purpose of God, particularly for a con­tinent like Africa where agriculture is so vital. Our land was taken from us and we have had to fight to get our freedom, which was granted in part.

We have the land but not the resources that come out of the land. In this jubilee God is restoring everything that the enemy has stolen. Not only will we receive full title deeds on our land but we will also receive restitution for what we lost from the land.

That is the law of the jubilee. Debt will be abolished, yokes of slavery will be removed and full freedom granted.

Dr. Golden Mahove is Chief Executive Officer at Ndarama Works (Pty) Ltd. He is a leading independent economic development business consultant specialised in inclusive agribusiness and enterprise development business models
applying market systems and value chain approaches. An accomplished Team Leader on five multi-million dollar programmes and technical expert. He is passionate about fostering innovation ecosystems to enhance shared value
and deepen impact.

Dr. Tich Tanyanyiwa is a prolific author whose voice has gone across Africa speaking on economic empowerment and financial freedom. We have created this website to give you easy access to his resources and message. We desire to partner with you in changing Africa and eradicating poverty. We seek to add value to the work that has already been done on the ground by other like-minded organisations. Birthing A Mega Economy is a prophetic word that was given to Dr Tich Tanyanyiwa on the way forward for Africa and her people. In the book Dr Tich Tanyanyiwa tables a process by which we can eliminate poverty in the next 50 years. He shows how that it is not only a great vision, but it is in God’s agenda.



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