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Investment Nuggets: There Is Power of Sharing When Connected to An Online C2C Community – A Crowd funding Potential Scenario

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Introduction

Some Connections2Communities (C2C) members continue to shy away from wholesale talk using the community vehicle that is right at their disposal.

They rather prefer the conventional retail based conversations which they have learnt over a longer period, and just like any old habits, such a practice does not die easily.

A new normal is upon us, the wholesale means is unarguably faster at reaching several heads that are readily congregated as existing community members, at single post or call of one’s business idea/plan.

The chats:

Following a conversation (cited below at first) between a potential C2C member and Mutumwa Mawere (MM), a brief perusal chat between MM and Brian Tawanda Manyati followed upon, ending with a basic financial literacy illustration:

First is the Nobuhle and Mutumwa Mawere chat (not cut short for reason of finding every detail in the conversation relevant):

[12/7, 12:17 PM] Nobuhle: Good day Mr Mawere…

I am Nobuhle, am a Zimbabwean living in Beira.. I am happy I stumbled onto one of your Live Fb sessions…

[12/7, 12:18 PM] Nobuhle: I would like to learn more about Rice and Anymari..

[12/7, 12:55 PM MM: Thanks.

[12/7, 1:37 PM] Nobuhle: The Basmati Rice Business is appealing

[12/7, 1:38 PM] Nobuhle: Do u think it would be viable to do it from this side..

[12/7, 1:40 PM] MM: What are the prices like per kg there? Do you want to sell in Beira or Zim?

[12/7, 1:41 PM] Nobuhle: In both… Here and in Zim I would sell in Bulawayo to be precise

[12/7, 1:42 PM] Nobuhle: Here… It it 600/700mts per 5kg

[12/7, 1:43 PM] Nobuhle: Let me check how much it is in Zim

[12/7, 2:24 PM] MM: At this price, it may not be worth buying from SA but from Beira and then sell to land locked countries.

[12/7, 3:19 PM] Nobuhle: Yes.. It makes sense…I was attracted by the one from India @R20 /Kilo

[12/7, 3:19 PM] MM: But this is in SA. If you add transport, then margins are eroded.

[12/7, 3:46 PM] Nobuhle: Eish…

[12/7, 3:48 PM] Nobuhle: Maybe I can/should sell in SA.. My daughter lives there…

[12/7, 3:49 PM] Nobuhle: How much is the profit per Kilo

[12/7, 3:52 PM] MM: It depends on marketing. You can make a minimum of R5 per kg up to R30 per kg.

[12/7, 3:56 PM] Nobuhle: It’s not bad if we can push Volumes…

[12/7, 3:58 PM] MM: Indeed. Do you not think that a crowd fund would be better?

[12/7, 3:59 PM] Nobuhle: Yes, I heard u talk about it… I dont know it… How does it work?

[12/7, 4:00 PM] MM: You can invest with others in rice and agree on a return per kg.

[12/7, 4:02 PM] Nobuhle: Hmmmm. Sounds Good… Whats the turnaround time?

[12/7, 4:03 PM] MM: This can only be done when volumes are involved. Do you want to be part of a volume builder?

[12/7, 4:03 PM] Nobuhle: Yes… Whats the minimum Investment?

[12/7, 4:04 PM] MM: What do you want or wish to invest?

[12/7, 4:05 PM] Nobuhle: Say R10000 to start with…

[12/7, 4:07 PM] MM: What do you think about investing in units of R500 each for the Rice Project?  With R10000, you can buy 20 units.

[12/7, 4:09 PM] Nobuhle: I am now getting lost…

[12/7, 4:09 PM] Nobuhle: Am not so good with figures

[12/7, 4:09 PM] MM: This will allow for small investors to also participate.

[12/7, 4:10 PM] Nobuhle: Thats correct..

[12/7, 4:10 PM] Nobuhle: So who gets the other investors

[12/7, 4:11 PM] MM: By stepping forward to do what you have done, you never know who else would be provoked

[12/7, 4:13 PM] MM: It is only people like you that provoke change.

[12/7, 4:15 PM] Nobuhle: Change is needed… Life is soo difficult now…

[12/7, 4:16 PM] MM: Yet knowledge shared is better.

[12/7, 4:17 PM] Nobuhle: Thankyou…

Thank you for sharing… I can see a light at the end of the tunnel

The second conversation is between Mutumwa Mawere and Brian Tawanda Manyati follow up chat in brief:

[12/07, 17:16] MM: What is your personal idea on the idea?

[12/07, 17:36] BTM: On crowd funding in general: It is new to most people in Zimbabwe. What you see with slack in paying subscriptions is exactly what I have experienced on a couple of crowd funding concept attempts, first in the transport sector and second with a hardware business concept. As for coming together upon hearing the proposal, several people would join in, but on asking each person to start with committing USD5 per head, only a few heads would take heed of the call. Even after being availed business proposal documents to first freely read.

[12/07, 17:51] BTM: On crowd funding, specifically on a vehicle such as C2C, which already has structural platforms (though understandably infant) for handling willing crowd funders contributions, there stands a fair chance of seeing any crowd funded venture as suggested in this case in point, being bulk rice or wholesale rice.

By the above I mean our crowd fund members sourcing rice in bulk from India as a unit (through fellow C2C members who have supplier links in India and then selling that bulk rice on a wholesale bases to retail units in Zimbabwe, in SA, in Botswana, in any other viable African nation. Those independent retail units should be willing to repack and brand before re-selling, it is a possibility that wherever they are they also can be C2C members with shops or prepared to run rice selling tuck-shops

[12/08, 07:40] BTM: @ R20 per kg = US$1 purchase price here, add rough transport cost of USD0.15 makes it USD1.15. 2kg roughly USD2.30/kg landing price. This is USD0.50 above the average local selling price/kg of USD1.80.

[12/08, 07:42] BTM: Zimbabwe side, Harare that is

[12/08, 07:48] MM: This is financial literacy in motion.

[12/08, 07:50] MM: Imagine you use the building community power concept inherent in C2C to use a 30 t truck and trailer and then deliver to many Zim based buyers, what would be the impact?

[12/08, 07:59] BTM: There definitely is a huge trade discount which may push the unit purchase price per kg to at most USD0.50 purchase price pre carriage in wards. Add USD0.15 carriage inwards assuming it is a fixed per kg that now gives us USD$0.65/kg. 2 kg would now cost USD1.30 and this is some USD0.30 margin between the last average selling price here in Zimbabwe of USD1.60 and the landing price. That USD0.30 is what is shared between the C2C wholesale crowd funder and the the retail unit/s, per a 2kg pack of rice. Bulk fuel sector the bulk ferrier loads 40 000 litres diesel, may now want to do a quick convertion and see what in Kgs a bulk ferrier/haulage truck carries.

[12/08, 08:01] BTM: Obviously no discount from any supplier can go above 50% which is why I said at most.

[12/08, 09:08] BTM: If anyone in the energy sector (bulk fuel selling) makes 0.05 per litre after all costs including taxes in a cash profit margin, they have added into their bank account at end of selling USS2000.

Assuming the same case suffices with a truck load of bulk rice disposed of here in Zimbabwe on a wholesale basis, by at least 20 C2C member crowd funders, each adds USD100 to their bank account at each Haulage Truck transaction end.

From what investment. If a discounted Kg is purchase priced at US$1.15/kg at most (assuming a 50% trade discount from supplier) it costs the 20 C2C crowd funders together, 30 000 Kgs × USD1.15 = USD34 500. Each person incurs $1725 initial cost (capital outlay).

Rice sold at USD1.25 least and competitive price, that is USD37 500 thus cash profit margin is USD3000 before subtracting the retail unit’s take.  USD150 per head.

May be to include the low earning crowd funder, it should be USD345 per head per a truckload transaction.

Which is 100 C2C crowd funding heads at one go?

Can be less than 100 heads if there are others with a better financial leverage but willing to do it with others, not single handedly, not with only a selective few. Broad based empowerment is what crowd funding is about.

Brian Tawanda Manyati (BTM) is a Chartered Governor and Accounting Technician . Author’s contacts: LinkedIn briantawandamanyati, e-mail tawandamanyati@gmail.com and +263772815211

Brian Tawanda Manyati (BTM) is a Chartered Governor and Accounting Technician. A board member of FoSMM responsible for information and publicity since 2021 and a subscribed member of conversations to community (C2C) since 2020.

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IDC’s Tshepo Ramodibe Cornered

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In a remarkable development, IDC’s spokesperson, Mr. Tshepo Ramodibe, who was quoted in an article published by the Sunday World in relation to a judgement granted by Judge Motsamai Makume on 23 March 2022, in which he confirmed that, it was the IDC, a public institution, that had initiated the the litigation.

In a new twist, when Ramodibe was confronted to provide evidence that the litigation was authorized by the IDC and the use of public funds was justified, he threatened this publication, was evasive, abusive, refused and failed to provide the basis of the authority relied upon to prosecute the claim.

A dispute was registered as to whether a presiding judge could discuss a rescinding application without dealing with the challenge of IDC, Plaintiff’s authority to litigate in the case 13276/14.

The suit was instituted by IDC in the high court of South Africa South Gauteng Local Division. In relation to this challenge on authority, it would appear it has taken IDC eight years to furnish the resolution binding this public institution to this litigation.

Mr. Peter Smith said, “what is puzzling about this matter is that IDC commented about a judgement in which Mr. Tshepo Ramodibe could not supply the impugned resolution. This raises a question of how public funds can be used for litigating a matter without the public institution, obeying the law. Rule 7 (seven) is a rule of court that provides for a litigant to challenge authority and therefore place a bar or any next step be taken prior to a court of law granting leave or being satisfied that the challenging authority does exist. Having looked at the record of exchanges between the reporters of IniAfrica.com with Mr. Tshepo Ramodibe, the inescapable conclusion is that IDC and its attorneys Werksmans, clearly have no obligation to observe the law and rules of court because after seven years, IDC has failed, refused and neglected to play its part in complying with this requirement.”

Ms. Lara Geach said, she found the exchange between Mr. Tshepo Ramodibe and Mr. Peter Smith not only interesting, but thought provoking if not classic and below is the said exchange:

Tshepo RamodibeMon, 4 Apr, 17:47 (20 hours ago)
to editor@iniafrica.com, me, psmith@iniafrica.com, tmpasiri@iniafrica.com, lovemorec@gmail.com, alugumigiven@gmail.com, cleopas@dawnholdings.com, Media, Chimwemwe, Tebatso

Mr Smith,

Please note that I have no concerns about the call made which was intended to get clarity on what was unclear in the emailed responses. All that is on record is a summation of the court ruling that confirmed the ruling court against the applicant.

The media is well aware of the matter and related court rulings. I suggest that any further enquiries in this regard be directed to appropriate legal platforms. The Judge and court that made the ruling is best placed to address any queries you may have.

I take confidence in the responses furnished by the IDC, as a public institution. Our Legal team and attorneys in the matter will guide any further interactions with your publication.

Regards,
Tshepo

Tshepo RamodibeTshepoR@idc.co.za011 269 3106Head: Corporate Affairswww.idc.co.za0829910851Corporate Affairs





—–Original Message—–
From: editor@iniafrica.com <editor@iniafrica.com>
Sent: Monday, 04 April 2022 17:17
To: Tinashe Mpasiri <tmpasiri@gmail.com>
Cc: Tshepo Ramodibe <TshepoR@idc.co.za>; psmith@iniafrica.comtmpasiri@iniafrica.comlovemorec@gmail.comalugumigiven@gmail.comcleopas@dawnholdings.com; Media <Media@idc.co.za>; Chimwemwe Mwanza <ChimwemweM@idc.co.za>; Tebatso Mokgoro <TebatsoM@idc.co.za>
Subject: Re: [External Sender] Re: IDC V MAWERE & OTHERS

Dear Mr. Ramodibe,

Good afternoon,

I have been briefed by Mr. Mpasiri and I have listened to the audio of the conversation.
I am astonished that you refused to provide the required information for us to complete our work in the public interest.
Your comments are in the public domain about a judgment on a dispute that the IDC is being called upon to provide as required by the Constitution.
I need not remind you of the provisions of PAIA that provide for the open and unfettered disclosure of information in your possession when requested to provide it.
I need not remind you that s9(a) of PAIA gives effect to our constitutional right to access any information held by the State subject to the limitation in terms of s(9)(b)(i)(ii).
I am sure you will agree that s9(d) provides for the establishment and mandatory mechanisms or procedures to effect our right to access the requested information in a manner that enables our media platform to obtain access to records of a public body like the UDC swiftly, inexpensively and effortlessly as reasonably possible.
As you correctly stated, the judgment is in the public domain and such
s9(e) is instructive in that the requested information is beneficial to promote transparency, accountability, and effective government of public institutions by including but not limited to empowering the public and raising literacy on civics so that victims of injustice can exercise their rights in relation to public bodies like the IDC.
You will not doubt appreciate that our staff as citizens are under pressure to interpret the import of the judgment especially when regard is had to the fact that IDC does not advance credit to the retail public especially persons of foreign nationality.
We are at pains to understand the relationship between the IDC and the person of Mr. Mawere.
We also need to understand the functions and operation of IDC, especially with regard to the burning issue of authority so that the public can effectively scrutinize, and participate in, decision-making by public bodies like the IDC that affect their rights.
One of the questions that have been raised is whether persons of Zimbabwean heritage who are not eligible for BEE status can borrow from the IDC. This question is of significance because we have 28-year-old South Africans who were born in South Africa and are desirous of accessing credit facilities from development finance institutions.
Your tone in the conversation with Mr. Mpasiri was not only condescending but arrogance as if to suggest that a judgment granted in IDC’s favor should only be subjected to scrutiny in the courts when you were at liberty commending on the same.
I find it strange that when provided with the information regarding why Mr. Mawere could not have attended two hearings at the same time, you chose to attack Mr. Mpasiri’s bona fides and effectively the integrity of our platform.
I am writing this letter if you know where we are coming from as we believe in using the media to promote a culture of accountability and transparency.
I am still not sure why you called Mr. Mpasiri rather than respond to the questions that are critical for any reasonable person to establish whether the impugned judgment was tainted by fraud or not.
I have attached a letter addressed to Dr. Sanangaura dated 1 March 2021 seeking the same information that we sought from you today. Surely, logic dictates that it would not take more than a year for you to answer a simple question on behalf of a public body whether the IDC had authority to institute proceedings that relate to the Makume J judgment or not.

I look forward to your urgent response.

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