This instalment continues from the one published in our last edition on the same topic.
Multiple sources of income
Many years ago when I was in banking, we advised clients to focus, focus, focus! We advised then to concentrate on one business. That time, during the early ‘90s, the market environment was more conducive to focus on one business and succeed.
In present day Zimbabwe, it has become high risk to concentrate on one business. Women with money in Zimbabwe are abundantly clear about this and as a result play in different sectors as a way to manage both country and sector risk.
Consequently, this has allowed them to derive income from multiple sources.
Use of cash/debit cards
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Although women with money own credit cards. They keep them for use on a rainy day.
Ordinarily, they spend what they have using cash or debit cards.
When they max out their credit cards, it is for a justifiable reason, often a quick high yielding transaction and when that deal gets to fruition, they quickly pay it off because they do not like paying huge amounts of interest. They would rather have their money earning interest.
Offshore accounts
Women with money understand the importance of having bank accounts in stable jurisdictions, where there is a rule of law and governments do not come up with statutory instruments allowing them to dip into the bank accounts of their citizenry.
Offshore bank accounts offer several benefits for women with money. They provide financial privacy, allowing account holders to safeguard their assets from prying eyes. These accounts can offer tax advantages, as some jurisdictions have lower tax rates or beneficial tax treaties.
Additionally, offshore accounts can provide greater access to international investment opportunities, enhancing portfolio diversification. Offshore bank accounts also serve as a secure way to hold funds in stable currencies, protecting against local economic instability.
Furthermore, having an offshore account can facilitate easier international transactions, making it simpler to manage finances across borders.
Cash is king
For women who understand money management, "cash" is often considered king because it provides immediate liquidity and control. Cash allows for quick access to funds, making it easier to seize investment opportunities or handle unexpected expenses without relying on credit.
It also helps in budgeting, as physical cash can make spending more tangible and limit overspending. Additionally, cash protects against market volatility, providing a safe haven during economic uncertainty.
Furthermore, holding cash can enhance financial security, enabling women with money, or anyone for that matter make informed decisions without pressure, ultimately fostering greater confidence and independence in their financial lives.
Property portfolio
Another woman with money bought a six-acre plot in my neighbourhood and has just finished the super structure for 40 units on the property. She is now working on finishes. By doing this development, she literally transformed a US$500 000 property into a US$6 million property investment. She has been funding all this from a cash-rich business in the haulage industry with large contracts locally and regionally.
Property is often considered a relatively good and safe investment vehicle for several reasons.
Firstly, real estate tends to appreciate over time, often outpacing inflation, providing potential long-term capital gains. Secondly, it offers tangible assets, unlike stocks or bonds, which can fluctuate significantly in value and you are left holding a mere piece of paper. In addition, property can generate steady cash flows through rental income, which can help offset mortgage costs and provide a reliable income stream.
Another key benefit of investing in real estate is the opportunity for leveraging. The real estate investor can use borrowed funds to purchase more properties, amplifying potential returns. Property as an asset class, also allows for diversification within an investment portfolio, reducing overall risk.
In addition, the real estate market is generally less volatile than the stock market, making it a more stable investment choice. In Zimbabwe, property holds the best value than any other asset class surpassing South African values as well.
Finally, tax advantages, such as deductions for mortgage interest and depreciation, enhance its appeal, further solidifying property as a favourable investment option. There is a caveat though.
Mortgage financing in Zimbabwe is no longer what it used to be. The duration of the dollar loans is short and determined by the statutory instrument that allows the use of the United States dollar until 2030.
With 2025 approaching, taking a mortgage loan today makes the loan term less than 5 years and the monthly mortgage payments staggering, depending on the size of the loan.
They are highly networked
The adage that says that “your attitude determines your altitude” is true. Women with money have big attitudes, but those big attitudes allow money to literally knock on their doors! They attract money because of their big, warm and firm hearts, but most
importantly, they have wisdom in knowing which bridges to avoid and which bridges to incinerate!
Women with money often tend to be highly networked due to several interconnected factors. Financial independence allows them access to exclusive social circles, professional organisations, and networking events where they can connect with like-minded individuals.
These networks can provide valuable resources, mentorship opportunities and collaboration prospects that enhance their careers and investments.
In addition, women with money often prioritise relationship-building, recognising that strong connections can lead to personal and professional growth. Networking for women with money has always served as a support system, helping them navigate challenges in predominantly male-dominated sectors.
Furthermore, as they achieve financial success, women with money tend to feel the responsibility to uplift others, through philanthropic activities. Through philanthropy, they meet more people who become part of their network helping them make even more money. Overall, networking becomes a strategic tool that amplifies their influence and business opportunities.
Engagement of expertise
Many wanna-be-women-with-money do not realise that to sustain having money and keeping it in the family for generations to come, you have to operate above board. Creating the impression that you operate above board will not work.
There are many big money business opportunities that the majority of women fail to access because they are averse to compliance.
Women with money always, without fail, engage expertise to ensure compliance with rules and regulations, such as compliance business licences and registering with the tax authorities for several key reasons.
Firstly, financial security brings with it greater responsibility. Women with money understand that maintaining compliance is essential to protect their assets and avoid legal complications.
This is necessary for all jurisdictions, but mostly important in Zimbabwe where green-eyed family and friends will report you to the authorities out of jealousy. Once upon a time, a close family member was advised by a Zimbabwe Revenue Authority (Zimra) official their investigations are always made easy by green-eyed monsters from friends and family who report to them when “they do not know where the money is coming from”!
Some write letters, other call anonymously requesting that X and Y ought to be investigated because their lifestyle has changed, and they have embarked on so many projects whose source of income is unknown. So, when you comply, you have nothing to worry about when Zimra knocks on your door.
Compliance can be arduous, tiresome and expensive. Women with money understand that engaging experts like accountants, lawyers, and financial advisors helps them navigate complex regulations and ensures they meet all legal requirements, minimising the risk of costly penalties from the authorities.
Secondly, compliance enhances credibility and reputation. For women entrepreneurs, establishing a trustworthy business presence is crucial in gaining clients, investors, and partners.
Demonstrating adherence to regulations signals professionalism and reliability, which can lead to more opportunities and growth. Women with money understand that if you are going to play in the big league, this is necessary.
Engaging expertise in compliance allows women with money to focus on their core business activities rather than getting bogged down by administrative tasks. This delegation empowers them to leverage their time effectively, driving innovation and strategic decision-making.
Finally, as advocates for gender equality in business, many financially successful women prioritise compliance to set a positive example for others. By adhering to regulations, they contribute to a fair business environment, inspiring future generations of women to pursue their entrepreneurial ambitions with integrity and accountability.
Real money is not loud
Women with real money in Zimbabwe and Sub-Saharan Africa tend to keep a low profile. It is the ones who are not super rich, who are big on conspicuous consumption and see-me- now, kind of mentality.
Women with money are averse to seeking validation using their immense financial success.
The women I know with an above a million-dollar status actually prefers to stay under radar.
Below are the reasons why:
In Zimbabwe, various socio-economic and cultural factors contribute to the challenging environment for women with money.
Historically, gender disparities have been entrenched in traditional norms, where men are often viewed as the primary breadwinners. This cultural perception has led women to feeling pressured to downplay their financial championship to conform to societal expectations.
Economic instability, characterised by hyperinflation and high unemployment rates, further exacerbates this situation. Women with money fear a backlash and jealousy from particularly their family and friends when they display financial independence. This leads to social ostracism. The broader community is far much less of a threat.
Furthermore, women with money are fewer and far between.
They might or might not know each other, simply for the fact that they belong in different age categories and operating in very different sectors.
That said, there is very little networking amongst women with real money because real money is not loud. This lack of a supportive network stifles their need to be known and also cross-pollinate upcoming women with money as role models.
Consequently, this cocktail of challenges creates an environment where women with money choose to maintain a low profile as a safe way to navigate societal expectations and avoid potential conflict.
Ndoro-Mukombachoto is a former academic and banker. She has consulted widely in strategy, entrepreneurship, and private sector development for organisations in Zimbabwe, the sub-region and overseas. As a writer and entrepreneur with interests in property, hospitality and manufacturing, she continues in strategy consulting, also sharing through her podcast @HeartfeltwithGloria. — +263 772 236 341.