An update from Gerry Griffin

2023 has already been a busy year for Growth 4 Zambia. Back in May I had the pleasure of meeting many leading lights from the nation’s growing business community. In conversations with a diverse range of businesses I noted one constant theme – a shared sense of enterprise in seeing Zambia thrive and achieve the place on the world stage it deserves.

Explaining our vision on Luksaka radio

Zambia has no shortage of talent and plenty of resources to support entrepreneurs. In May, I met some terrific mentors and coaches, witnessed some great and cost efficient uses of space, and saw first-hand how technology is already being used to achieve growth. However, one thing that I noticed was a lack of straightforward capital. In discussions with banks, I discovered a certain reluctance to invest in small businesses. Furthermore, if banks do choose to invest, the interest rates can be particularly high.

These financial barriers to entrepreneurship will be overcome eventually – it’s just a question of how long the process takes. It is hoped that Growth 4 Zambia will act as a catalyst and speed up this process by providing capital and expertise to several key small businesses in Zambia.

Lessons from Ireland

I think back to when I left school in Ireland in 1983. Back then, Ireland was very different to what it’s like now. Lacking in natural resources such as oil and gas, it was highly dependent on agriculture. Ireland’s position in the far west of Europe posed challenges for imports and exports and once goods arrived on its shores, they had to contend with a poor quality transport infrastructure.

In the years since, Ireland’s population has remained around the five million mark; however, its GDP has grown rapidly from 20.77 billion (USD) (1983) to 516 billion (USD) (2023).[1] Much of this growth can be attributed to Ireland’s membership of the EU, which encouraged tech and healthcare firms to set up shop there. Thanks to added capital, and access to bigger markets, businesses have boomed creating knock-on benefits for the wider country. Ireland can now boast the third highest GDP per capita in world after Luxembourg and Singapore.[2]

Compared to Ireland, Zambia is a much bigger country of 20 million people. However, there is no reason why it can’t go on the same journey. The first step of this journey is capital, and that is where Growth 4 Zambia can play a role.

What we are trying to achieve

In part, Growth 4 Zambia will be providing capital and business support to up to 15 Zambian businesses over the next three years. The aim is to get these businesses into play, with a particular focus on the export market which has grown rapidly over the past few years – from 8.69 billion (USD) (2016) to 13.4 billion (2021).[3] Along with various exported goods (agricultural supplies, clothing, jewellery etc.) a priority for Growth 4 Zambia is to also support Zambia’s burgeoning tourism industry, which currently represents 10% of the country’s total exports.[4]

We have now closed the funding window, and I am currently reviewing the applications. However, I would like to use this opportunity to reflect on something that I have learnt to be vital in the world of entrepreneurship – namely, having a ‘customer focused approach’.

Meeting at Bongo Hive in May 2023

The importance of knowing the customer

Often when I speak to entrepreneurs, they get very exercised about their business idea. This is as it should be – many businesses start with a great idea, the so-called ‘lightbulb moment’. However, the thing that is going to make the business idea a success is connecting it with a particular market.

Therefore, the first question I ask entrepreneurs these days is not ‘tell me about the idea’ but ‘tell me about your customer’. Ask yourself: ‘What are their hopes?’ ‘What are their fears?’ ‘How will your solution benefit their lives?’

Presenting to entrepreneurs in Luksaka

The fact is that if you can’t answer these questions, then your great idea will probably remain just that. In other words, it’s unlikely to become a business. Furthermore, even if your initial funding needs can be met and you are able to launch, the reality is that this money will run out unless the customer engages with the value proposition and supports it with their own custom.

So, above all else, know the customer!

The outlook

In summary, the past few months have been an exciting time and I am expecting much of the same in the months and years to come. I am thrilled to be on this journey with a fantastic team and want to pass on my thanks and best wishes to everyone who applied for funding.

We will be reaching out to all applicants by the end of the year. It is worth stressing that unsuccessful applicants should consider re-applying next year and be on the lookout for the other forms of business support that we are looking to provide.

As a social enterprise, Growth 4 Zambia is already making an impact, but remains in its infancy. We are always open to having a dialogue with all sorts of businesses and are always on the lookout for ways to move them towards the next stage of growth and create great meaningful employment in Zambia, while contributing positively to the community fabric and wider environment.

[1] IMF World Economic Outlook Database [2] Worldometer – GDP per Capita [3] The Observatory of Economic Complexity – Zambia [4] Trading Economics - Zambia - International Tourism, Receipts (% Of Total Exports)