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UNIVERSITY OF ZIMBABWE

FACULTY OF COMMERCE

GRADUATE SCHOOL OF MANAGEMENT

STUDENT NAME: Group 13

MBA 504: BUSINESS ENVIRONMENT

ASSIGNMENT 1: BUSINESS AS UNUSSUAL: CHALLENGES IN SELLING AND ALLOCATING


RESIDENTIAL STANDS TO THE COMMUNITY A CASE OF: CITY OF HARARE

COURSE COORDINATOR: DR M. SANDADA

Graduate School of Management, Faculty Of Commerce, University of Zimbabwe. MP 167


Mt Pleasant, Harare.
Abstract

City of Harare remains the key player in selling and allocation of stands to the community
people, that is to make sure that each individual has a place to put their head on and
allocating to other cities a portion also in which they can allocate to their community people
The complexity of the role of City of Harare in Zimbabwe however changed with challenges
in the overall business environment, especially under hyperinflation period coupled with the
land redistribution programme. Land expropriation by the government, foreign currency
controls and shortages soon after the land redistribution programme, effects of sanctions
imposed by the European Union on marketing, emerging of fraudsters that are within the
city of Harare organisation or copy cats, poor work ethics, and hence significantly reducing
the goal of selling and allocating stands to the community. Some of these challenges have
worsened especially post the hyperinflation period since even the prices of the stands are
difficult to merge with the current economic situations This study sought to investigate and
establish the impact of the challenges being faced by city of Harare selling and allocating
stands to the community This study explores various challenges faced by the city of Harare
and how to circumvent them under improved political, economic, socio-cultural,
technological, legal and environmental factors that can boost the rate to which stands can be
allocated equally and strategically . The study employed both the qualitative and
quantitative research methodologies with a questionnaire being the main data gathering
tool. The findings of the study showed that city of Harare
Can make a meaningful contribution to housing developments in Zimbabwe. In order to
promote Zimbabwean business environment, amongst other things the city of Harare need
use follow a procedure in which the process of selling and land allocation follow through a
standardised protocol which would have been formulated by the strategic managers of city
of Harare, the process should be published to the public to avoid fraudsters and to make
sure that before land allocation the area is tested to see its viability that is to see if it’s not
also a wet land or a reserved place like an island park or council owned
INTRODUCTION

Performance of the Zimbabwean economy has always been anchored by the agricultural
sector. According to the Zimbabwe Farmers Union (2013), the agriculture sector at its peak,
has contributed as much as 30% of Gross Domestic Product (GDP) . However after the year 2000,
there has been decrease in output in the sector ( ). Amongst other challenges, this has
been brought up through a land redistribution programme that disrupted production. The
exercise was mainly done in order to balance the patently unfair distribution of land
inherited by the government in 1980, with about 6,000 white commercial farmers having
access to 15.5 million hectares of the best farmland, while over 760,000 smallholder farmers
were expected to eke out a living on a mere 16.4 million hectares of communal land – much
of it in arid areas with poor soils, the government went through a land distribution process
in 2000 ( ). However, the gross production of the major commodities from the
commercial sector in 2005 was less than half the production in 1998 (ref), with currently the
large-scale commercial sector producing less than half the output of the 1990s ( ).

As the major economic driver was shaken, the overall business environment was not
conducive for the new farmers as many factors came into play that hindered production.
Soon after the year 2000; amongst other things, there was drought, then followed by a
massive hyperinflation period coupled with a volatile political environment. The sector’s
growth rate suffered some drawbacks and started to slow down since 2006 owing to a number of
factors. The inflation period saw its pick in 2008, and all gains to the redistribution of land

couldn’t be realised as the costs of all inputs and even products was beyond ordinary
planning as worthless bank notes which were worth less in value than the cost of printing
them were in use. During the period, most people depend on imported goods such as clothes,
fruits and vegetables from neighbouring countries and abroad. However, in as much as
Zimbabweans embraced the Government of National Unity (GNU) especially when it came
to its policy on dollarization in 2009, the economy has not yet significantly improved
especially the agricultural sector.

Considering the trends, with production data from 2000 to date show decline in maize
(79%), wheat (90%), soya beans (66%), citrus (50%), fresh produce (61%), dairy (59%), beef
(67%), coffee (92%), and tea (40%) according to various sources. Only tobacco, a major
foreign currency generator, has rebounded to become one of the major successes. As the
agriculture sector hinges on other sectors, like manufacturing, growth in the other sectors
tends to be equally affected. It is up to expectation that the agriculture sector should
rebound after the hyperinflation period, where production in all sectors was generally
attributed to the fall in Zimbabwean currency. The tobacco production has shown the
potential but gains in all other crop production has not been realised.

During the peak production years, prior to 2000; its noteworthing contribution of the various
agricultural sub sectors to the overall performance of the industry with the large scale
commercial contributing 28%, with small scale (3%), communal (42%), resettlement areas
(9%), ARDA (state farming) (1%), Parks/Forest land (16%) and urban areas (1%) (Commercial
Farmers Union of Zimbabwe). Agriculture in Zimbabwe has the potential of making
significant contributions to the GDP and employment creation which are key antecedents to
sustainable development. This sector has always been the major diver for employment and
is second in terms of foreign currency generation, supplying up to 47% of exports (ref). In
the absence of proper planning of our political, economic, socio-cultural, technological, legal
and environmental factors and evaluation of the major strength and weaknesses we have in
this sector; national growth, employment creation, sustainable development would
continual be negatively affected. This also calls for evaluation of attributes- knowledge,
endowments, capacity and competences of the new players affecting productivity in the
sectors in order to compete in an increasingly globalised commodity market. Hence with the
changes in land distribution and use systems, versus recent dollarization, which is past 2009
period, it is imperative to evaluate on the challenges hindering sustainable agricultural
growth, with much emphasis on crop production in Zimbabwe.

STATEMENT OF THE PROBLEM

The agricultural sector, hence land use is largely influenced by a number of factors, the main
ones being climate, socio-economic (culture and population dynamics) and government
policies. The agricultural sector in Zimbabwe suffered so many shocks which include among
others economic and political distresses, climatic and environmental changes. This has
slowed or created stagnation in achieving sustainable economic goals through the sector,
which also becomes an anchor on all other sectors including manufacturing and banking.
The unemployment rate in Zimbabwe has been pegged at around 85% for past decade. The
performance of this sector could be catapulted in a business operating environment that is
conducive. Supportive government intentions and policies have been set up; however the
efforts by government seem to have not yet fully produced the desired results. What has
remained unclear is the impact of Zimbabwean business environment on the performance
of the agriculture sector especially on farm productivity post the 2009 period.

OBJECTIVES

To establish the extent at which the Zimbabwean business environment between 2009 and
2015 influence the agricultural sector in Zimbabwe.
To establish the influence of agricultural production emerging threats and opportunities in
Zimbabwe.
To establish and document various interventions that can be employed to make the
agricultural sector contribute significantly to economic development in Zimbabwe.

HYPOTHESIS

The Zimbabwean business environment between 2009 and 2015 has no influence on the
performance of the agricultural sector in Zimbabwe.

There are no threats or opportunities towards agriculture production in Zimbabwe.

No interventions can improve agriculture productivity in Zimbabwe.

RESEARCH METHODOLOGY

The study employed a descriptive survey design within the quantitative research paradigm.
The design was employed to gather the opinions of farmers on how the business
environment in Zimbabwe during 2009 to 2015 affects their levels of production. Forty (40)
participants were engaged in the study. The participants comprised rural farmers, A1, A2,
commercial drawn from Mashonaland East province. A questionnaire with three sections
was used to collect data for the research. The first section gathered biographical data while
the second section collected socioeconomic information. The third section was centred on
farming activities and potential challenges in the farming business environment faced by the
participants. The questionnaire was the preferred data collection instrument because it is
the most commonly used tool to obtain facts and opinions about a phenomenon from
people who are informed on the particular issue (De Vos et al. 2002).

Participants were randomly selected from both rural farmers, A1, A2 and commercial
farmers. To ensure a fair representation, the stratified sampling method was employed to
select the respondents. The desired number of participants was selected proportionally
from each of the farming groups. Randomisation of selection meant that every farmer had
an equal chance of being chosen. Prior to the administration of the questionnaire to the
participants, a pilot study was conducted with 15 participants who did not form part of the
sample. The questionnaires were hand delivered to the participants and group administered,
hence a maximum return rate of 100% completed questionnaires was realised. The study
used descriptive statistics to analyse the collected data. The computed percentages
indicated the point at which items tended to cluster (Kothari 2004). The statistical technique
was preferred for its simplicity.

Participants indicated their consent verbally before completing the survey questionnaires.
The researchers assured participating employees of the confidentiality of their responses. All
answers were recorded anonymously. The participants were informed of their right to
withdraw from the study at any stage. The study did not subject them to psychological or
physical harm.

STUDY AREA
Marondera District falls under Mashonaland east province. The ditrict capital is Marondera.
It is divided into four parliamentary constituencies: Marondera East constituency,
Marondera West constituency, Marondera Central constituency, and a small northern
portion of Wedza North constituency. Marondera Central comprises only Marondera Town.
Marondera West constituency comprises the Chihota communal area and includes the
business centres at Mahusekwa, Chiwanzamarara and Manyaira. Marondera East
constituency comprises the Svosve communal lands, and the Rhodesclarke, Chitangazuva,
Waddilove, Musi and Mukute, Surrey and Dambi Estates areas. From the population census
(2012), the district has close to 200 000 people.

The district is characterised by a wide soil fertility range from low impoverished soils in
predominantly rural communities to rich soils in commercial farming areas. It mostly falls
under region 2b characterised with average rains of between 800mm to 1200 mm per year.
The area has several dams however underutilised because of inadequate and or outdated
irrigation equipment. During the colonial era to date Marondera district is inundated and
domiciled by commercial farmers with communal farmers doing predominantly subsistence
farming. Domination by subsistence farmers especially in horticulture-tomato production is
highly recognised. Livelihood activities for most households in this district are centred on
farming.

RESULTS AND DISCUSSION

a) Demographic data

b) Socio-cultural factors

c) Political factors

Contribution of Political factors to productivity in the agricultural sector from 2009 to 2015
Yes No
Agricultural production
strategy
Land redistribution
Indigenisation
Relationships with other
countries
Relationships between
political parties

d) Economic factors
Contribution of Economic factors to productivity in the agricultural sector from 2009 to 2015
Yes No
Agricultural production
strategy
Dollarisation
Money supply
Disposable income
Credits and financial services
Interest rates
Financial inclusions

e) Technological factors
Contribution of Technological factors to productivity in the agricultural sector from 2009 to 2015
Yes No
Agricultural production
strategy
New discoveries (eg seed
varieties)
State of the art technology
eg combine harvesters
Irrigation technology
Mobile banking

f) Environmental issues
Contribution of Environmental issues to productivity in the agricultural sector from 2009 to 2015
Yes No
Agricultural production
strategy
Energy consumption esp.
tobacco
Environmental protection
law

g) Legal issues
Contribution of Legal issues to productivity in the agricultural sector from 2009 to 2015
Yes No
Agricultural production
strategy
Land tenure
Product safety
Employment law
Competition law

Discussion

Recommendations

Conclusions

References

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