Pfunzai Mazano Series One Summary

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Thank you for participating in our Pfunzai Mazano Series One, were we talked about the Mushika-shika business model (Zimbabwean transport black market). This is an effort by our Shaphat Business Development Brand recognizing the fragments that form the base of the Zimbabwean economy. These underdog business models are giving an affordable alternative service or product to the mass, sending kids to school, paying rentals kumaraini, putting food on the table, taking an employee of a blue chip company to their work station or even ferrying an injured civilian to the hospital and saving a life!!

Below are the key results of market perceptions that we summed up on the Mushika-shika business model;

Trending

  • Roads leading into town & ranks look more smarter and less congested after the kombi and mushika-shika bans.
  • The ZUPCO transport system has proven less popular & inadequate hence creating a market for private transport.
  • Mushika-shika has now evolved further. We have seen the resurrection of the mid 1990’s Peugeot 504 station wagon “ET”, ghosting as a Toyota Wish “ET”, and stretching service delivery to a wider radius from the Harare CBD.  Some market participants attest that the new “ET” cashes as much as USD40/day after paying daily wages & replenishing fuel. Roughly the return on investment is quite lucrative. Zvakadzora in a month unobata zvako eight waya yako bhoo!!

Investment Opportunity & Scalability

  • The absence of licenses, fees, taxes, insurance and fixed salaries presents a low-cost model, hence favorable pricing. This could also be the reason why the model is hamstrung to develop into corporate business models like Vaya or Uber type.
  • Mass electrification of a similar Mushika-shika business model has started in East Africa. A Rwandan start up obtained funding from a Silicon Valley venture capitalist fund for the project.  Maybe the Zimbabwean Investment Authority (ZIA) will assist our local model to source similar funds and refine our local models.

Customer Experience

  • The service was noted to be customer centric.
  • Service was noted to be affordable and easily accessible. No need for web-based applications, internet data or voice call to book a trip.
  • The Service was noted to be flexible in terms of pricing. Half mari inodiwa!!

Concerns

  • Safety issues were raised in some instances. The temple run quest!!!
  • Customer care was noted to be poor in some instances.
  • Regulation and non-compliance to local business customs was also noted.

Coming this week is Pfunzai Mazano Series Two discussing the “Runner” business model (Zimbabwean Logistics Black Market) . Hanzi zvese zvaunoda bata runner wangu!!!

Article compiled By;

Holderness CA(Z),RPAZ,CAWM

Shaphat Consulting (Private) Limited

Call us on 0718 080 008 or 0713 767 356 or 0775 344 587

Visit us on www.shaphat.com

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