H. E. Mr. J. Wutawunashe, Ambassador of The Republic of Zimbabwe talks about Zimbabwe’s readiness to accept Indian brands with Manish k. Pandey...How is Zimbabwe different from the other African markets? Zimbabwe’s market can be perfectly placed within the global context. In our interaction with the global market in which we operate, our tastes have been shaped in part by Africa, and in part by the world at large. The technology and products used by the Indian market have been found to be appropriate for Africa and Zimbabwe. Zimbabwean people have a high level of adaptability, in both production and consumption, hence great potential is offered to business houses from India & elsewhere.
While China has till now adopted a largely heavy industries led investment approach in Africa, India’s approach is more entrepreneur and brand led. How do you think these two different approaches are going to help Africa, particularly Zimbabwe, in the long run?
India, too, does have a capacity and an appetite for heavy industry, and has a high global profile in industries like coal and steel. Africa is ready for Indian brands, and some prominent ones like TATA, Swaraj, Mahindra, Sonalika, Kirloskar and so on are well known. A recent development in Zimbabwe was the arrival of Hindustan Machine Tools by way of the Indo-Zimbabwe Technology Centre project. We are convinced that the time has come for Indian brands to popularise themselves in Africa through deliberate efforts in market development, in the same manner in which these brands popularised themselves in India by developing the domestic market. This means setting up production units in Zimbabwe and other African countries, which is superior to merchandising from afar. The secret is to be actually present in the market in which you want to stimulate a demand for your product.
Critics say that Africa is fast becoming the testing ground for India Inc.’s ‘brand’ war with corporate China. What’s your take on this?Those critics should get real jobs. Why should brands that do not fight anywhere else be said to fight in Africa, a continent that has space for more brands than are on offer? Africa’s plan is to industrialise, and in our growth market, brand complementarity is the buzzword. In Zimbabwe, we are fortunate to have citizens of both Indian and Chinese origin, and for us the prospect of joint ventures between Zimbabwean, Indian and Chinese industrialists and entrepreneurs is not far-fetched. It must not be forgotten that, if ever there is a competition, Zimbabwean brands and brands from elsewhere in Africa will be in the mix, because we do have competitive brands in Africa. The arena for such competition will not necessarily be Africa.
Is the time really ripe to enter the African market?Africa is an attractive continent, and that is why so many myths have been spread about her. It is true that in the past, those who were having it good in Africa at Africa’s expense saw advantage in spreading a distorted image of Africa to discourage prospective competitors, particularly competitors from Asia. Centuries ago, the Portuguese found vibrant trading partners in the Munhumutapa Kingdom of which we are proud descendants. The fact that colonialism interrupted Africa’s normal commerce does not mean we have lost the instinct. Visit the market in Lagos, in Dar es Salaam or in Zimbabwe’s Chitungwiza, and you will realise that all this talk about caterpillars that you step on – and why step on living things anyway – is based less on fact than on ignorance. Shall we talk about Zimbabwe’s gold and platinum, or the rapid pace at which vehicles are being assembled in Harare? What about the sugar plantations that give the highest yield per square meter in the world? What about the fabulous tourist safaris on the Zambezi or the sophisticated banking sector that gives good business to major Indian software developers? If we are a caterpillar, we are a caterpillar on steroids!
What, according to you, are reasons behind their (India and China) renewed focus on Africa?Africa is a good source of energy products and raw materials, and it is natural that countries that are industrialising at a fast pace should look to our continent for a mutually supportive relationship in these areas. Africa is also a growth market that appreciates products from Asia, and it is a smart move for Asia to respond as positively as we can see in the various initiatives. Industrialists correctly recognise Africa as an opportunity for high returns on investment, as the headroom for production and marketing is high. Zimbabwe is keen on joint venture partners from India, who will benefit from concessions under our Look East Policy. A one stop investment centre, the Zimbabwe Investment Authority, is charged with expediting investment proposals.
What, according to you, are the emerging trends and markets in Zimbabwe?The emerging trends and markets in Zimbabwe include: Mining (platinum, diamonds, coal, gold, phosphates, et al), Agro-based Products (cotton, tobacco, horticulture, fruits, et al), Agricultural Machinery and Fertilizers, Tourism (Victoria Falls, Hwange National Park, hunting, et al), Power and Water Infrastructure, Software, Pharmaceuticals and Industrial chemicals.
How do you think the West would react (rather is reacting) on the growing dominance of Indian and Chinese brands in Africa?If I were a western entrepreneur, I would begin to worry about market share, and would adopt strategies to out-compete the newcomer, particularly by setting up more manufacturing units on African soil. If I were an Indian entrepreneur, I would try to be quicker on the draw.
What is your advice to Indian brands who want to be successful in Zimbabwe?
My advice to them is: emulate those whom you want to compete with – the West – who because of colonialism has been put exclusive. As you come from Asia you are welcomed but you must act accordingly and not hesitantly. It’s known the moment an Indian company stands ready to use its own resources, the moment an opportunity in America crops up for it. The same enthusiasm, if not more, needs to be shown by them in order to tap an opportunity in growth market like Africa. They should use their own resources and not wait for handouts from the Government of India. They are just supports & cannot be the main growth driver for them.
