1. Wondering why Econet has been having network issues lately?

Dive into Part 2 of this series, where we unpack Econet's financial rollercoaster over the past decade and how it has impacted you.

Here is the untold story about Econet's struggles.

Let’s Unpack!

🧵 THREAD 🧵 2. To recap in Part 1 we talked about how the Telco model revolves around four sequential and simultaneous cycles: Borrow, Build, Sell, and Service.

If you missed Part 1, I recommend quickly reading through it where I explain in detail. It will only take 3 minutes.

https://twitter.com/166012451/status/1775565476535669231

1/25 What has happened to Econet?

10yrs ago Econet had its best-ever year with revenues of $753mn and profit of $194mn.

Since then revenue & profits have dropped & recently Econet had major network issues.

What's up? Is Econet still a good business?

Let's unpack!

🧵THREAD🧵 2/25 To analyse Econet we need to take a step back and try to break down the telecommunications (telco) business model in its simplest form.

We will also use MTN in South Africa as a reference point.

Zimplats generated over $1 billion in profits in the last 3 years but yesterday they announced a plan for job cuts.

Why do such successful companies still need to cut jobs?

Let's unpack.

🧵 THREAD 🧵 To understand the driver of job cuts we need to start with the foundation of any business, the profit equation:

Revenue - Expenses = Profit.

When a business struggling, it must either increase revenue, reduce expenses, or do both.

Simbisa Brands recently released their results, and it seems they know something about Zimbabwe that most people don't.

Simbisa is investing heavily in a way that may be surprising but could set them up to dominate in the future.

Let's unpack.

🧵 THREAD 🧵 Background: Simbisa Brands is a fast-food operator that owns, operates and franchises a selection of well-known Quick Service Restaurant brands in 9 African Markets.

These brands include Pizza Inn and Chicken Inn, and Nandos and Steers of South Africa.

1/28 Beyond the Headlines: The Untold Story Behind Deloitte's Zimbabwe Exit.

While Deloitte's departure from Zimbabwe made headlines, understanding the events requires digging into recent history to uncover the full story behind the news.

Let's unpack!

🧵 THREAD🧵 2/28 Last week Deloitte Zimbabwe announced it was leaving the Deloitte network.

This must have been a tough decision.

Deloitte is one of the biggest brands in the world and it comes with one of the best reputations.

And for accounting firms, reputation is everything.

1/12 When people say "Africa Is Poor Because People Are Too Religious" I always think of 👇🏾

The Connection Between a "Pastor" And The Birth Of The Swiss Watch Industry. 🕰️

The success of Rolex and many others can partly be attributed to the impact of John Calvin.

🧵 THREAD 🧵 2/12 Today Switzerland dominates the luxury watch market. If you Google "Top 10 Watch Brands", all the brands that come up are Swiss except for the German A. Lange & Söhne.

But this wasn't always the case & one of the most important shifts was due to the theologian John Calvin.

1/24 The End of EcoCash Holdings: A Case Study for Entrepreneurs On The Importance of Focus

When EcoCash (Cassava Smartech) was listed in 2018 its share price was $1.49 today its share price is ~$0.70

How could a company set up for success struggle?

Let's Unpack!

🧵THREAD 🧵 2/24 Background: EcoCash Holdings will likely transfer all its businesses except for Steward Bank to Econet thereby marking the end of EcoCash Holdings as we know it today.

This also effectively reverses the demerger that occurred 5 years ago.

1/24 Ziyanda vs Fieldbar: A case study for entrepreneurs on turning ideas into businesses.

In 2018, two companies set out to create fresh African luxury products.

Both had great ideas, but only one succeeded.

Why did Fieldbar succeed but Ziyanda disappoint?

🧵THREAD🧵 2/24 Fieldbar has become a huge success with its cooler box so popular that it has been sold out for weeks and they can't meet demand.

However, in 2018 when both businesses were starting the bigger buzz was around Ziyanda Appliances.

1/20 Amazon Coming to South Africa is Good News for Takealot but Bad News for MultiChoice, DStv's owners

Recently, I wrote about why Amazon's Online Store could be good news for Takealot.

However, there is one business that should be concerned — DStv.

Here's why.

🧵THREAD🧵 2/20 DStv, which is owned by MultiChoice Group (MCG), needs no introduction.

Launched in 1995, it's the biggest TV service in Africa by some distance.

To simplify things, I will use the MultiChoice Group and DStv interchangeably as more people are familiar with the name DStv.

1/23 Truworths And Edgars Were Never Clothing Retailers

They were more like banks with a side business of selling clothes.

Understanding how to identify this can help you save your business from sudden failure and find your biggest opportunities!

🧵 THREAD 🧵 2/23 People tend to describe companies based on the products they sell. E.g. If I sell paint, I am a paint manufacturer. The problem is sometimes the visible product or service is not actually what drives the economics of the business.

1/19 The fascinating connection between Metro Peech & Browne's (MP&B) Collapse and Truworths.

At the heart of it is a intriguing company run by a 37-year-old entrepreneur, that seems to be steadily gaining in influence.

Let's unpack!

🧵 THREAD 🧵 2/19 Recap: Sahara Capital Group (SSCG) acquired MP&B's assets for $5.2 million, positioning them as winners in the aftermath of MP&B's collapse.

MP&B's creditors were the losers, but the situation could have been much worse without the successful deal with SSCG.

1/17 Updated Post: Sub-Sahara Capital just closed a deal for Metro Peech & Browne.

Let's unpack the details of the deal and the winners and losers.

Part 1 is on Sub-Sahara Capital Group, who I think was a big winner. 2/17 Sub-Sahara Capital Group (SSCG) is an investment firm often associated with Innscor due to a close working relationship, despite not having common shareholders.

Importantly, SSCG controls the wholesaler Gain Cash & Carry, while also maintaining other diverse investments.

1/18 Sub-Sahara Capital just closed a deal for Metro Peech & Browne.

Let's unpack the details of the deal and the winners and losers.

Part 1 is on Sub-Sahara Capital Group, who I think was a big winner. 2/18 Sub-Sahara Capital Group (SSCG) is an investment firm affiliated with Innscor through common shareholders.

Most importantly, they are also invested in the wholesaler Gain Cash & Carry, but they also have a broad interest in many other companies (see below).

1/16 How is TM Pick n Pay doing compared to OK?

This is a question often asked, especially when discussing how OK has been struggling.

If Pick n Pay is also struggling as much, then maybe formal retail is dead.

I dug through both their financials, and this is what I found. 2/16 First thing to compare is trading volumes which is the best approximation of sales. We can compare these as both companies have similar year ends.

Both companies have been impacted by rise of informal traders however TM PnP less so with volumes up +2% vs OK down -8%. 🤯

1/27 OK just released their trading update, and it's not looking good.

OK is in a brutal storm with potentially huge losses and a cash crunch.

Will OK survive, or will they need a "Big Brother" to come to their rescue?

It's a huge thread, but it's worth it! Let's dig in! 2/27 Background: We have talked a lot about OK in recent times. If you need a recap, I have linked the previous posts at the end of this thread. So for now, I will just jump in.

The biggest statement in the update is that OK's volumes are down -22.6%. That's really bad.

1/24 OK's results are out, and they are not pretty.

OK blames the environment & competition from informal traders.

But maybe there is another a hidden issue that has been a blind spot for OK for over 10 years — Capital Allocation.

A thread🧵 with background & analysis. 2/24 For large companies it is IMPOSSIBLE to maintain a competitive edge if you don't do Capital Allocation well.

Harvard defines Capital Allocation below but hyper simplified Capital Allocation is how a company decides to invest or spend its money to generate returns.

1/21 Major wholesaler, Metro Peech & Brown, just went bankrupt but the most interesting story is actually about Spear Capital...

...the Norwegian-linked Private Equity firm that invested in Metro Peech.

This thread that unpacks the story that most people are missing 🧵👇🏿 2/21 Background: Metro Peech & Brown opened its first store in 2010 & grew rapidly to 18 stores across Zimbabwe.

It has revenues of over US$70m & is backed by Private Equity (PE) Firm, Spear Capital.

On 24th August it was officially deemed bankrupt & filed for corporate rescue.

1. OK is over 80yrs old. Shouldn't the headline be "OK Opens First Store OUT OF ZIMBABWE"

Let's use OK as a case study for how to decide on entering new markets —essential knowledge for business leaders.

🧵 Thread below👇🏾, including valuable insights from Jack Ma! 2. Intro: #OK is Zimbabwe's leading retailer with ~70 stores in 🇿🇼 & revenue ~US$500m. It started in 1942 & is one of the oldest retailers in Africa.

NB: It is not to be confused with OK in South Africa which is owned by Shoprite.

Now let's evaluate OK's market entry potential.

1/16 I looked at Manchester United's financial statements to try understand why fans hate the Glazers so much.

Now I understand. The #Glazers have suffocated Man Utd by underinvestment and it is likely to continue.

Full analysis🧵 + V11s 👇🏾

#ManchesterUnited #ManUtd #Arsenal 2/16 Man Utd has historically been the biggest club in the world & still has a phenomenal brand but recently growth has slowed. Compared to 2018, 2022 revenue was down 1%.

One could say the revenue was impacted by COVID but Man City's revenue increased 22% over the same period.

1. Jumia once called the "Amazon of Africa" just released their financial results for Q2 & they are not looking good. The former unicorn, has stopped growing & is facing challenges that could bring down one of the most hyped start-ups from Africa.

Analysis + V11s below 👇🏾 #Jumia 2. The first concern is the -15.4% decrease in revenue combined with a operating loss of $23m. Usually a company has a revenue or profit problem, Jumia has both. That's like a football team that can't score goals and also can't defend.

1. Zimbabwe's Top Companies Like Delta Corporation Have Mastered This One Thing Better than Global Companies Such As General Electric (GE).

This must-read case study covers 20 years of corporate history and will change how you see Executives in Africa!

🧵+ V11s 👇🏾

#Delta #GE 2. In 2000 Delta Corporation wasn't only a beverage company it had a hand in many unrelated businesses. It was into hotels, casinos, supermarkets, furniture as well as being a drinks manufacturer. In short, it was what is called a #conglomerate.