In Africa, some of practical strategies that could generate you start up capital or growing it in volume are still primitive if we are to compare how entrepreneurs generate their capital in the western countries. Despite these methods being backward, they are still effective in our Continent of Africa and they could really help, in this article, I'm going to share with you my own experience as well as some data which I have aquired through a wide range of research techniques.
1. Barter trade.
This is one is known from it's contextual meaning as the exchange of goods or services without the use of money. This method is still effective among African societies, people are travelling from different angles around countries to exchange commodities like old western clothes for cereals, maize, beans and livestock.
This deal only makes sense if allow yourself engage in it, from my own experience I have realised that exchanging old clothes (Mabhero in Shona language/ bales old clothes) with beans is such a big deal!, all you have to do is sourcing these bales for a lower price from boarders and travel to exchange with beans in rural areas. Later on you can sell that beans where there is high demand.
There is a lot of options to sell these cereals, you can add value to them through packaging or even branding. In an interview with one of entrepreneurs I have come across, I have realise that this deal can spin $50 into $300 within a short period of time. If you are interested in such deals of growing capital, please get in touch with me on WhatsApp [+263788312267] I can link you up with rural area farmers.
In another way, you can exchange goods for livestock; goats, cattle and poultry. With livestock you have a number of options, you can decide to breed or you can open your own butchery. The idea behind this concept is that, exchanging with commodities is more cheaper than purchasing livestock with cash, as long as you do have links to access cheap products and transport them to rural areas.
2. Sourcing products from rural areas.
From my own case Study analysis, it is possible to access products with little or no capital from rural areas to urban areas, the only cost that might be associated is transport cost. For instance firewood, if you could connect with farm owners who usually clear their lands or mines, you can access cheap or free firewood. If could manage to trade firewood in urban areas, you can grow capital to start your desired business.
In rural areas you can find free land with water to engage in Hoticulture production, as long you are capable of creating relations with local people. That's what I do for capital generation in all of my projects. You can grow tomatoes or cabbage and supply it to urban areas.
In areas such as highlands of Zimbabwe, I have realised that you can collect sweet mashroom for free in bushes, you can collect sweeping bushes for free, if you capable of transporting these products where there is need, you can generate capital to start your dream project.
3. Trading and vending in gold and diamond fields.
There are some of rural areas were people are doing gold panning, you can supply those people with food, clothes, gadgets such etc for high prices. From my own experience, I have realised this happening in Zimbabwe, areas like Kadoma, Chimanimani, Bocha, Inyanga, etc. A lot entrepreneurs managed to raise required capital through these methods.
If you're interested, I have links, people and areas where you can start to generate capital for your desired projects.
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According to my theory of growing capital, you should support a large project with a number of small projects that could quickly generate small funds which you can reinvest in your main business idea.
Here is the list of rural areas where you can source some cereals and beans, horticulture products and maize.
- Chipinge highlands; horticulture produce, maize.
- Chipinge lowveld; cereals, beans, horticulture produce.
- Chimanimani; fruits, bananas, avocado, macadamia,
- Inyanga; timber, horticulture produce.
- For cattle, goats, Muzarabani, Mushumbi, Mahuwe.
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4. Recycling of plastic.
This is one of the ways that could be used by those who wants to generate capital from stretch, zero capital projects. Plastic recycling is being done in Africa, in large or small scale, so if you wish to generate small capital for step one, you can start this project of collecting dumbed plastic material and supply it to those recycling companies.
I usually recommend entrepreneurs to start with a business plan, so let's say your main idea is to create an e-commerce company, it's obvious that you cannot raise all the capital required once, so you must create a series of small businesses, that is [collecting dumbed plastic material - invest that money in poultry - invest profits in cabbage farming - keep these two projects till you reach your desired level capital to invest in e-commerce solutions].
I have a lot of links with recycling companies in Zimbabwe and South Africa. Another way you could generate capital with plastic material pertains to production of plastic bricks, these bricks can be used to for paving and building supplements. You manufacturer and sell these bricks instead.
5. Learn some crafting skills.
If you are flexible, then you can learn to create some art, promote and sell it to generate capital. There is wide range of art that you could do at profit. Let me start with rattan furniture, you can collect some sisal material, add value to it and craft furniture like chairs, kitchen accessories and decorations art.
You can easily do this in farm lands and rural areas where there is a lot of sisal material and wood. With wood you can craft cooking sticks, wooden plates, decorating art and carpets. You can travel to exchange these with beans, cereals and maize.
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