via Mugabe exposes Kasukuwere – DailyNews Live by Eric Chiriga 26 MAY 2014
As the economic crisis in Zimbabwe reaches boiling point, President Robert Mugabe’s move to push for amendments to the controversial indigenisation policy has left former minister of Indigenisation, Savior Kasukuwere with egg on his face.
Diverging from Kasukuwere’s hard stance on the implementation of the policy, compelling foreigners to cede at least 51 percent shareholding to indigenous Zimbabweans, government is revisiting the indigenisation law to allow sector-specific implementation.
According to State media reports, the policy rethink will allow investors to realise their initial capital investment, get appropriate return on investment and recover operational costs.
The new arrangement will see the empowerment policy being implemented through two models; the Production Sharing Model and a Joint Empowerment Investment Model.
During his tenure, Kasukuwere was aggressively pursuing the policy, in a wayward manner viewed as trying to curry favour with Mugabe, disregarding experts’ advice on the implementation of the controversial empowerment programme.
Consequently, his move resulted in massive investor flight and dampened foreign direct investment.
The Zanu PF minister — now in charge of the Environment ministry — pushed for the takeover of controlling stakes in foreign-owned companies, refusing to exempt sensitive sectors like banking.
He even threatened to kick out foreign banks which failed to comply with the policy.
But his successor, Francis Nhema, like former Reserve Bank of Zimbabwe governor Gideon Gono, ruled out the “one-size-fits-all” policy that Kasukuwere wrongly pushed for.
Recently, Mugabe ruled out a one-size-fits-all indigenisation approach, saying only companies utilising the country’s natural resources will be required to immediately give up majority stakes to indigenous Zimbabweans.
“In the implementation of the indigenisation programme, there has been some confusion,” Mugabe said during celebrations marking 34 years of independence from colonial rule.
“We have said where the companies have been established mainly on the basis of natural resources, mining, agriculture, manufacturing, we demand that Zimbabwe either through government or through our people should have 51 percent and not less than 51 percent.
“But if a company establishes itself and is getting raw materials from outside and the raw materials are not from here in Zimbabwe, take the case of aluminium, we don’t have raw materials of it; if the raw material comes let’s say from Tanzania, which has it, and the company establishes itself here in Willowvale, we cannot demand 51 percent, we can negotiate with the company on what percent we shall have.
“If a company establishes itself using raw materials sourced from outside the country, we will share.
“We cannot demand 51 percent because we don’t have materials. These materials have come from outside and the machinery is also coming from outside and therefore we don’t have a basis to demand 51 percent.”
During his era, Gono maintained his stance on the indigenisation of foreign-owned banks insisting government should be cautious in dealing with the “delicate” institutions.
He argued that while the banks should observe the laws of the country, “the process… should, however, take cognisance of the sensitiveness around the operation of the banks to restore confidence, trust and stability in the sector.”
“One-size-fits- all does not work,” the former central bank boss insisted.
He said the central bank was working together with the Indigenisation ministry “to ensure that compliance with appropriate laws is done in an orderly manner.”
“Any pronouncements that encroach into the financial sector will remain pronouncements until they know who to consult,” Gono said adding that, he would not keep quiet or fold hands while there were “frequent and flagrant attacks by some who are not as knowledgeable as us.”
For his arguments, Gono was labelled a sell-out and a house nigger especially after he refused to endorse deals involving indigenisation of major companies and the community share ownership schemes.
Following Mugabe’s shift in the implementation of the empowerment policy, widely viewed as a step in the right direction for the investment-starved Zimbabwe, there have been calls for his government to amend the law to incorporate the changes.
Ulrich Klockner, German ambassador to Zimbabwe, said investors from his nation are still sceptical of the piece of legislation, unless Mugabe’s word was put in writing.
“We are very excited about the new clarifications that are coming up, but we feel the government of Zimbabwe should at least put these into writing for reference,” he said.
Eric Bloch, an economist, said government has only made statements and promises, but has not moved to amend the laws.
“The law was an obvious infringement on property rights. If government is serious about these utterances, I say they move quickly to boost investor confidence and just put all this in writing,” he said.
Australia also said investing in Zimbabwe is extremely risky, likening the move to swimming in the dangerous crocodile-infested Zambezi River.
Matthew Neuhaus, the country’s ambassador to Zimbabwe, told a Sapes Trust conference recently that the African nation has a long way to go in attracting foreign direct investment (FDI).
“Investing in Zimbabwe is like swimming in the Zambezi between crocodiles and hippos,” he said, adding that “instead of policies to encourage FDI, you have chosen indigenisation especially in the mining sector”.
He said Australian investors have found it easier to do business in Zambia and Mozambique, injecting billions of dollars in investment in the economies.
“Because of the uncertain political and economic environment, investors have skirted this country,” said Neuhaus.
However, early this month, Finance minister Patrick Chinamasa reassured investors that Zimbabwe is a safe investment destination, if they comply with the country’s laws.
This comes as foreign investors have been skirting the investment-starved country, labelling its policies hostile, particularly the empowerment law.
Chinamasa said government plans to put in place “a flexible policy framework that attracts investment while at the same time ensuring that the people of Zimbabwe also benefit”.
He said the Zimbabwe Investment Authority will have full authority to determine investment conditions and approve foreign direct investment.
COMMENTS
Julius kasukuwere is still getting richer fatter and ugly bald skull
Impossible to “indigenise” heart and brain which is what makes things successful. Short term political expediency and now the ragged rooster limps home to the cooking pot. Tough luck – all dishonest things are revealed by time and only the truth will set us free
” Mugabe exposes Kasukuwre”. Sounds like uncle Robert is playing with other men again.
you are 100% right!
Well, it can’t be all bad if it’s keeping Australian mining interests out of our National Parks.
Kasukuwere was just dancing to his master’s voice. Its Mugabe’s terrible legacy which is being exposed. Everything they say must be taken at face value.THE LAWS STILL STAND AND Zanu does not respect any laws anywhere .
I agree with Roving Ambassador. Kasukuwere pushed for nothing that Mugabe did not inspire. Such misplaced wishfulness by the Daily News. Mugabe must go.
Putting it in writing, amending the law whatever they do is irrelevant. They’ve always taken people’s property, killed and ignored Court rulings.Only a fool would think it’ll be different this time. Investors keep your money in your pockets and let them keep their Zimbabwe!
This is just a smoke screen. Kasukuwere did this with Mugabe s approval, now he pretends as of he is against it. They were just campaigning for votes.
NOW YOU CAN GO TO THE LAW AND OTHER LAWS AND CHANGE THEM ACCORDINGLY. A BREATH OF RELIEF, BUT WITH CAUTION BECAUSE SOMEONE MIGHT PULL A STUNT BEFORE WE SEE REAL CHANGE.AT LEAST WE ARE POINTING IN THE RIGHT DIRECTION….WHAT’S LEFT IS TO WALK OR RUN IN THAT DIRECTION. THANK YOU MR PRESIDENT. THE REST IS NOW AS EASY AS ABC.GOOD LUCK
IF ZANU PF DOES THIS AND A FEW MORE THINGS THEN THE PEOPLE WILL BE FULLY BEHIND THOSE WHO WANT US TO FEED. ADVERSARIAL RELATIONS, EVEN AMONG OPPOSITION PARTIES ARE NOT GOOD OR HEALTH. THEY CAN CO-EXIST AS A MULTI-PARTY DISPENSATION. WE WANT A HEALTHY AND LOVING SOCIETY NOT A SOCIETY PERPETUALLY IN QUASI CIVIL WAR.
Mugabe has exposed himself as a complete fool along with all the other idiots in Zanu PF. Why would anyone bring the capital and expertise to Zimbabwe with all its le,gal uncertainty, uncertainty of foreign currency flows uncertainty of electricity supply and start a business so the government can demand 10% or 20%? That same person or persons can do the same in Mauritius or South Africa and keep 100% of the business as well as enjoy tax incentives. Zimbabwe is doomed as long as the avaricious, murderers remain the Government
Well said Kevin. Why cant the so called leaders for once use their brains. No doubt they have really brought Zimbabwe to ruins. This talk about indigenization is just for the benefit of themselves. The poor people want jobs. They should stop talking about this nonsense 51%. Investors pay tariffs, property taxes, and they pay employees who in turn pay income tax and sales tax. That’s all money that goes to government. The dreamers at the top must wake up and work extra hard to woo investors. Correct your stupid laws or else lose investors to your neighbors. Why do you think Botswana has opened shops right next to the border for Zimbabwean shoppers. They want to collect all the money whilst the so called leaders in Zimbabwe sleep.
Investors, stay out of Zimbabwe as long as zanu is the Government. Their track record speaks for itself. You cannot trust a word they say, even if they ‘put it into law’ I thought murder was illegal and ‘in law’ in the country. Tell that to 30 000 victims of Gukuruhundi. Tell that to Mr Francis and his daughter. Tell that to the many other murdered citizens by zanu and their followers, non of whom have ever been brought to justice. ‘The law’ means nothing to them unless used as a club for their personal agenda.
Well said Kevin. Why cant the so called leaders for once use their brains. No doubt they have really brought Zimbabwe to ruins. This talk about indigenization is just for the benefit of themselves. The poor people want jobs. They should stop talking about this nonsense 51%. Investors pay tariffs, property taxes, and they pay employees who in turn pay income tax and sales tax. That’s all money that goes to government. The dreamers at the top must wake up and work extra hard to woo investors. Correct your stupid laws or else lose investors to your neighbors. Why do you think Botswana has opened shops right next to the border for Zimbabwean shoppers. They want to collect all the money whilst the so called leaders in Zimbabwe sleep.
The damage caused is irreparable. Companies have left and have decided to invest in countries where there are valued and respected. It was for Kasukuwere’s own enrichment. It is too late unless you are going to reverse all that he in areas like Ngezi platinum mine. The actual beneficiaries are not getting anything. In Marange its even worse. Zimbabwe is for Zimbabweans and all those who live in it. This is merely window dressing. What has to change is the approach and the draconian laws that are in place. Egocentrism should be thrown away and work for the people. They must not glorify the papers with rhetoric every day. They must walk the talk.
The damage caused is also because they decided to look AT SKIN COLOUR these bufoons must come clean with themselves that is why the ordinary folk are doing the same thing do recal Tawanda saying that the land should be for blacks only – how racist can people – all the top brass in most companies for many years have been with a surname you can detect come from this region that takes from all the ordinary people are copying what the top have done
Nonsense. Kasukwere is a child. He was merely being HIS MASTERS VOICE; why are these writers playing games with the public.
The lack of foreign investments and the accompanying current economic problems can be traced back directly to the gukurahundi Mugabe’s racist invectives against western investors.
It is him who has all along been insisting on this 51% regardless. Many of his Ministers have tried to allay investor fears but each time he came in to insist government policy will not change – its 51% of else; hence the confusion.
Kasukwere was merely parotting the Gukurahundi’s line thats all!!
I long told you that PRISON ECONOMICS DEGREES are useless, but for years people have continued praising Gukurahundi Mugabe’s useless degrees and his so-called unparalled intelligence.
Now, you eat that “useless intelligence” and live with the consequences!!
What ignorance, no raw materials for aluminium! Mountains in Mutare area are almost 100% bauxite! What’s lacking is the electricity to smelt it – so close to the Cabora Bassa power line but so far away from indigenous competence.
In Zimbabwe it is called politricks. Zimbabwe, my beloved country, my frustration.
Kasukuwere = President’s Elephants. Isn’t he the one who trashed Sharon Pincott’s efforts to save these elephants? How many $$$ has he got to make Sharon’s elephants targets for rich yanks and their small dick bullets? If you have any questions start with the central proposition “Zim = corruption”. All explanations flow from that.
Trust a ZANU (PF) government at your own peril. They have chameleon policies. If they are genuine, why are they not humbly admitting they made stupid and myopic policies in the first place?
Mugabe us a simple herd boy. He thinks he is clever. Damn fool
Most Zimbos have now come to the same realization. That corruption is corruption, no matter who engages in it. It has destroyed our country and continues to do so. In the past, most people were blinded by tribalism and racism. May God help us. WE really deserve better in this beautiful Zimbabwe.
Zim was truly a Garden of Eden feeding Africa. It is now a cesspit of corruption, rape and torture. Zanu will pay the price in history. They will be held to account.
RGM? Please, please just die. You and ZANU have destroyed Zim but the people, the good people of Zim, survive and hope to build a new, fair Zim.