No business knows it all, just as one tree doesn’t make a forest, so it is important for businesses to come together in partnership so they can both gain. It is the most strategic way for businesses to scale their innovation and solve complex challenges. Collaborations and strategic partnerships – the keyword being strategic – are fundamental to improving business outcomes.
Partnerships are beneficial to every business. The management team and employees will benefit from partnerships because they have the opportunity to broaden market share, relevance and increase visibility. Customers are not left out as they benefit from the strengths and offerings that the formation of partnerships produce. Employees equally get a chance to enhance their skills and have access to more developmental opportunities by being exposed to new perspectives.
Why establish business partnerships?
Partnerships deepen ties between businesses and foster collaborations and longevity. In all, partnerships are key to improving service to customers by merging talent, expertise, technology and purpose.
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How do you know when to form partnerships and how to create valuable partnerships? You need to identify the specific challenge that needs to be fixed. Businesses need to know what their customers want and then identify who to form an alliance with in order to provide an enhanced service.
How to establish partnerships
However, you need to be certain that your company is strong enough to form partnerships. One of the key ways of harnessing the strengths of other businesses is to lay out what each is bringing to the table and what each business is lacking either operational or otherwise and look for ways to collaborate on their individual strengths in order to grow.
Businesses looking to form partnerships must agree to work together towards a common goal. Establishing a clear goal of what the partnership aims to accomplish is key to the success of the partnership and the growth of the individual businesses involved. A good example is a partnership between Piggyvest and Landwey to facilitate ease of accessibility to land ownership for middle and low-income earners.
Another good example is Prospa’s partnership with Workstation. The workstation has a digital member network of distinctive people and companies to which they send helpful information – newsletters, events and press releases. Prospa has partnered with them on a few events and workshops to leverage their network of entrepreneurs in order to establish its digital banking accounts for businesses.
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Recently, Flutterwave partnered with Worldpay; the collaboration between the two companies will allow Worldpay merchants in Europe and the United States to accept any African payment. These are examples of strategic partnership where each of the company leveraged on the strength and market share of the other to grow.
Effective communication is another way to build a concrete partnership. Clear communication between partners must be established. Having a series of meetings to elaborate on partnership collaboration is key so as to understand the needs of both parties and what they hope to accomplish. Open and effective channels of communication will go a long way in establishing a successful partnership and subsequent business growth.
Partnerships are also a way for businesses to gain access to untapped market segments and resources as well as create supply chain resilience. Strategic partnerships with reputable brands can put businesses in target communities where they were struggling to enter before.
South Africa Unions Reject Government Plan to Review Pay
The South African labour unions have rejected a government proposal to review planned increases for civil servants days before they were due to be implemented.
The Public Servants Association, which represents 230,000 government workers, says the state has asked to review the last leg of a three-year pay agreement because it couldn’t afford it.
The Public Servants Association says the timing of the proposal, a few days before the adjustments were due to be implemented, speaks of a government that regards public servants as an easy target to resolve its financial woes.
The Central Executive Committee of the Congress of South African Trade Unions, the country’s biggest labor federation, says if the proposal made its way into the budget speech it will be seen as a declaration of war.
South Africa Raises $1.1 Billion Bailout for Ailing Airways
South Africa has almost doubled its funding for the national airline to 16.4 billion rand ($1.1 billion), cash which will go towards supporting a restructuring plan for the almost insolvent carrier.
The bailout will be used to service and pay debt previously guaranteed by the state over the “medium term,” according to the country’s Finance Minister, Tito Mboweni.
This amount compares with 9.2 billion rand earmarked for South African Airways in October.
SAA has been a drain on the National Treasury for several years racking up losses of more than R32 billion over the past decade.
Late last year, the government placed the airline on a local form of bankruptcy protection, and administrators have set about reducing costs by closing routes and considering asset sale.
However, the Finance Minister has often stated his reluctance to support SAA while faced with bigger problems such as the $30 billion of debt owed by state-owned power utility Eskom Holdings.
In addition to Treasury funds, SAA was last month, given access to R3.5 billion from the state-owned Development Bank of Southern Africa.
South Africa to Establish $2 Billion Sovereign Wealth Fund
South Africa has announced that it will use money from the sale of broadband spectrum and mining royalties to establish a 30 billion-rand ($2 billion) sovereign wealth fund, according to the country’s Finance Minister,Tito Mboweni.
Its establishment was first mooted at least 10 years ago.
The proposed fund comes at a time when Africa’s most industrialised economy is struggling to contain rising debt amid sluggish economic growth and a budget deficit projected to widen to a near three-decade high of 6.8% in the coming fiscal year.
Mboweni says the legislative framework for the fund will be submitted to the parliament.
Funding will come from the government’s plans to sell broadband spectrum this year, along with royalties from petroleum, gas and mineral rights, as well as the sale of non-core assets, future surpluses and savings.
The government is also pressing ahead with plans to form a state bank that will operate as a retail financial institution premised on commercial principles, he said.
However, the Reserve Bank is yet to grant the proposed lender an operating license.