Market Conditions in Zimbabwe Boost Opportunities for Business Software

Rampant inflation, the pressures of volatile interest, money market and exchange rates as well as shortages of bank notes, fuel, electricity and foreign currency have boosted opportunities for business software vendors in Zimbabwe.

Every day a business in Zimbabwe has to deal with a host of variables that can have a severe impact on its operations and stability. ”Most businesses have become strongly reliant on accounting and business software to keep track of where they are,” says Rob Watson, managing director of Chips, the Harare-based distributor of Sage Pastel accounting and business software.

Chips, the top distributor for Pastel International with sales from Sage Pastel of more than R1.3 million in the 2003 financial year, has a network of 92 dealers throughout Zimbabwe.

Sage Pastel International director Jeff Lewis said, “It’s ironical that in spite of Zimbabwe’s problems, Chips have thrived in their market space. It is a perfect example of how a focused, dedicated and flexible distributor could achieve significant success”.

Watson says the success Chips has achieved with Pastel in Zimbabwe is directly attributable to the company and its dealers adopting a positive attitude and selling the software as the most cost-effective means of managing a business in an inflationary environment with continually escalating costs and volatile interest and exchange rates.

“Accounting software is the means by which companies can better manage cost escalations, implement and manage frequent price changes and manage inflationary spending as money loses value in the bank. The speculative nature of the market has also increased borrowings and banks need up-to-the-minute accounts. Inflation has also driven investments in large stockholdings and software is needed to identify optimal stockholding levels.

“Price control and tax legislation also drive the need for software. The management of price lists and the ability to rapidly effect price changes at branch levels becomes critical to a business and with the introduction of a consolidated, streamlined tax department, companies need to have the correct information immediately available.”

Another major influence on the success of Chips was its encouragement and ongoing support of the dealer network in focusing on creating “best practices” for various industries and processes, a move that has helped to entrench Pastel as the accounting software of choice in Zimbabwe.

“Local support and services are critical,” concludes Watson. “It is the only way to ensure that the software package addresses all of the local tax and fiscal reporting requirements and to add value in terms of customising for individual business needs.”

“With a positive attitude and through building, training and supporting a dealer network that adds value to customers, Chips has created a growth platform for all concerned in what many would regard as a very difficult trading environment.”