Talking Business with Dr L Zembe

Dr Luxon Zembe is a highly experienced business leader and consultant with over 30 years in corporate governance, leadership, and management consultancy across various sectors. He holds an MBA from Standard Chartered Bank, an undergraduate degree in Adult Education from the University of Zimbabwe, and certifications as a Commonwealth Certified Trainer in Corporate Governance and a Certified ILO Trainer in Business Development. In 1996, he founded Management Solutions Group P/L, which has since expanded into business consultancy, tourism, education, farming, and offshore financial investment advisory services. Zembe has chaired and served on boards of several organizations, including ZB Financial Holdings, World Vision Zimbabwe, and the Rotary Club of Harare City. He is also a former Group Chairman of CBZ Holdings, President of the Zimbabwe National Chamber of Commerce, and has held leadership positions in numerous other professional organizations. An adjunct lecturer at multiple universities and professional institutes, Zembe is a renowned economic and public policy analyst, regularly contributing to print, electronic, and TV media.

Dr. Zembe addressed the ASI members, beginning by congratulating the current leadership of ASI and acknowledging the organization's growth over the years. He emphasized that ASI Zimbabwe is celebrating its 18th anniversary in 2024, a milestone that signifies maturity and progress since its establishment in 2006.

Dr. Zembe shared his appreciation for the leadership's efforts, noting that the organization is maintaining high standards. He encouraged the team to continue their good work and commended the positive developments taking place within ASI. His presentation covered a few key areas, with a focus on the current business landscape, the national budget, and the debt issue.

One of the key points in the presentation was the national debt. He asked the audience to calculate the per capita share of Zimbabwe's debt, which stands at 21 billion USD, implying that every Zimbabwean, including newborns, is in debt. Dr. Zembe urged the members to be aware of this situation as it affects the nation's financial health.

He also demonstrated a thought exercise involving nine dots arranged in a square formation and challenged the members to connect all the dots using only four straight lines without lifting their pen. This exercise was designed to highlight the importance of thinking outside the box and looking for solutions that may not be immediately obvious. The point was reinforced by showing the audience a visual puzzle, where perceptions could differ — illustrating that challenges can also present opportunities if approached with a different mindset.

Dr. Zembe discussed the concept of adaptability and lifelong learning, quoting Alvin Toffler's idea that those who cannot learn, unlearn, and relearn are at risk of becoming obsolete in today's fast-changing world. He stressed the need for continuous learning to stay relevant and effective in business.

Regarding the economic landscape, Dr. Zembe provided a brief on the national budget and its implications, acknowledging the challenges of inflation, currency volatility, and power shortages. He also addressed issues such as climate change, geopolitical conflicts, and their impacts on businesses. The national debt and liquidity issues were highlighted as significant concerns for the economy.

He also covered the government's response to the economic situation, noting the austerity measures being implemented, including restrictions on foreign trips by government officials and a focus on fiscal and monetary discipline. Dr. Zembe shared his doubts about the government's ability to achieve the projected 3% average monthly inflation, given the various challenges.

Dr. Zembe also discussed the importance of business resilience in the face of economic uncertainties. He highlighted the need for businesses to adapt to the changing environment, navigate the challenges of a volatile economy, and make tough decisions to ensure long-term success.

In his address to ASI members, Dr. Zembe highlighted several key points related to mindset, financial literacy, and the challenges faced by African communities, especially in Zimbabwe. He began by emphasizing how the education system stifles critical thinking and creativity. Drawing from his personal experience at Standard Chartered Bank in 1989, he recalled an encounter with a manager who instructed him to focus on teaching employees to follow rules, not think. Dr. Zembe rejected this mindset, asserting that teaching people to think critically and use their brains is essential for success in work, business, and life.

Dr. Zembe pointed out that the prevailing mentality in many African societies is one of dependency and consumerism. He criticized the "master-servant" mentality, especially within business and social dynamics, and emphasized that black people, in particular, have been conditioned to view themselves as inferior, while whites are seen as more blessed. He clarified this misconception by referencing biblical teachings, emphasizing that poverty is not a divine decree but rather a result of poor mindset and management. He also noted the poor state of many churches and the need for better financial stewardship within religious institutions.

Financial literacy was a central theme of Dr. Zembe’s presentation. He defined it as the combination of financial awareness, knowledge, skills, attitudes, and behaviors surrounding money management. He cited the global financial crisis of 2008 to illustrate how individuals in wealthier nations quickly adapted to economic challenges, selling expensive cars, while in Zimbabwe, many continue to indulge in materialism, such as buying expensive cars as status symbols, often at the expense of basic needs. Dr. Zembe urged members to assess their relationship with money, suggesting that true financial wisdom comes from saving and investing first, before spending.

Dr. Zembe then discussed the issue of financial literacy in Zimbabwe, noting that many individuals, including small and medium-sized enterprises (SMEs), lack the basic skills to manage their finances effectively. He mentioned the government's efforts to promote financial literacy from a young age through the National Financial Literacy Framework, which aims to teach children the value of money and work. He also criticized the tendency to spoil children by giving them money without teaching them accountability, which leads to a generation without work ethics or an understanding of money.

The speaker encouraged members to accept their weaknesses in financial management and seek assistance to improve. He acknowledged the tendency to blame external factors for financial problems and emphasized the importance of personal responsibility. Drawing attention to the current financial challenges in Zimbabwe, such as currency devaluation, he warned against relying on reactive, short-term solutions, like guerrilla tactics, and instead called for long-term strategic planning.

Dr. Zembe then outlined several key strategies for improving financial management: living below one's means, making wise investment decisions, avoiding impulsive spending, and prioritizing needs over wants. He stressed the importance of creating a diversified income portfolio and managing debt responsibly. He shared his own experience of selling a property to reallocate resources for better financial health, advising members to avoid emotional attachments to material possessions.

He concluded with a call to create an "ecosystem"—a network of businesses, operations, and relationships that can support mutual growth. Drawing inspiration from the Jewish community, Dr. Zembe emphasized the importance of legitimacy in business, faith in divine blessing, and making strategic decisions that align with spiritual and financial principles.