Zimbabweans accused of blocking indigenisation

via Zimbabweans accused of blocking indigenisation | The Herald December 23, 2015

FOREIGN investors are open to indigenisation while Zimbabwean private sector executives and some senior Government officials are the most vocal critics of the initiative aimed at empowering and improving the participation of indigenous people in the economy, a top Government official said last Thursday.

The indigenisation and empowerment drive, which was introduced more than five years ago, states that locals be majority owners in major enterprises operating in the economy, controlling a minimum of 51 percent.

The drive has, however, been criticised by locals who view it as an obstacle and major reason why there has been a dearth of foreign direct investment in the country in the past few years.

But Youth, Indigenisation and Economic Empowerment permanent secretary George Magosvongwe told stakeholders at a workshop aimed at improving the business environment in the country last week, that foreign investors were willing to comply with the law.

“Indigenisation is not a dirty word, it is not a swear word,” he said.

“We have not had problems with foreigners declining and refusing to co-operate on indigenisation. Our greatest problem, our opponents have been internal, inside the fort.”

Mr Magosvongwe added: “The spokesmen of foreigners in this country are our own people, who include chief executive officers and sometimes within Government, our own senior officials. They are frightened on behalf of foreigners.”

He said engagements with foreign investors on the intent of the law and compliance had been positive but the “spokespersons” had created fear of the indigenisation process.

Explaining why the law was enacted, Mr Magosvongwe said Government had found it necessary to empower indigenous people who at one time had been disadvantaged through colonialism.

Mr Magosvongwe’s remarks follow hard on the heels of remarks by President Mugabe that Government would next year not tolerate any foreign-owned companies that were still dilly-dallying to comply with the law.

“There are some companies in this country that still refuse to accept our empowerment policy in the mining sector,” President Mugabe said last week in Victoria Falls during ZANU-FP’s annual conference.

Deputy chief secretary in the Office of the President and Cabinet Dr Ray Ndhlukhula said the only problem with indigenisation were “distortions” on the intentions of the law which were being peddled by people opposed to it. — New Ziana.

COMMENTS

WORDPRESS: 10
  • comment-avatar
    R Judd 6 years ago

    Indigenisation as applied here in Zimbabwe is a criminal activity where ZANU tyoes steal other people property. This should not be confused with an actual policy to uplift local citizens of which no such policies exist

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    gonzo 6 years ago

    why would i invest in Zim and give control of my company to someone that nows nothing about how to run it.If he is that good he already has his own company if he has not already ripped it off and closed down, wake up and start to look after yourselves at least things worked before 1980.

  • comment-avatar

    The herald just looking for scapegoats for their master’s (zpf) abject failure to run the economy successfully, or any other part of the country for that matter.

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    Maxwell Mashindi 6 years ago

    As a foreigner I would have my capital to start my company to make profit I think its not fair and perhaps not attractive to me to let my investment taken control of by someone. I have my own ideals, policies and ways in running my company. If the company does well no much problem but when collapsing decision making becomes vital to protect my invesment so the proportions had to be favourable and attractive to me for sure, to secure my money and my investment.

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    C Frizell 6 years ago

    As well as being thieves and crooks, these buggers are criminallt insane!

    Like “sanctions” the “Indigenisation” mantra has become part of the mad Zanooo religious doctrine, so they will stick to it however ruinous, stupid and illogical it is.

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    IAN SMITH 6 years ago

    Indigenisation is a racist and criminal ideology with no place in modern time it will never work just forget it.

    Complete collapse is guaranteed.

    WHAT DOES THE WORD CITIZEN MEAN IN ZIMBABWE?????
    NOTE THE PEDDLERS OF INDIGENISATON NEVER USE THE WORD CITIZEN.

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    IAN SMITH 6 years ago

    There are some companies in this country that still refuse to accept our empowerment policy in the mining sector, Induna Bob Matibili said last week in Victoria Falls during ZANU-FP’s annual conference.

    WHY NOT JUST GRAB 100% SEE WHAT HAPPENS.
    STEP 1) CONFUSSION
    STEP 2) NO WAGES
    STEP 3) SHUT DOWN

    THE ONLY REASON YOU ARE BEGGING FOR WHITE DONATIONS IN THE GUISE OF INVESTOR IS BECAUSE YOU ARE NOW BROKE AND HAVE BEEN GIVEN AID BY WHITE MAN FOR 35 YEARS YES WHITE MAN.NO SELF RESPECTING BLACK WILL GIVE YOU ONE CENT NO WAY.
    TIME TO GET OF YOUR BEHIND AND WORK STOP DREAMING OF SETTLERS AND WHITE FARMERS (CITIZENS)

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    Yayano 6 years ago

    I am happy to hear that the locals are resisting the indigenisation for they can see that it doesn’t make sense.
    If you imagine a foreign company like Google coming to invest in Zimbabwe and they set up everything at their cost and when they have finished they are then told to give away more than half of that company to locals who have contributed nothing.
    Where is the sense in that?
    Rather the government should itself be seen to be promoting the locals by giving them incentives like tax breaks, cheaper land, training, etc to help them start their own businesses.
    That way the economy grows and jobs are created and not this indigenisation policy that doesn’t work and drives away investors to be.

  • comment-avatar

    If the shoe was on the other foot and Mugabe and his people were told to give 51% of their business to the govt of the day would they willingly do it. Of course not. Nobody would. Why would they? How incredibly stupid. The country is run by people that are totally corrupted and blinded by greed.

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    Surely if indiginisation was meant to address the imbalance pre 1980 then any company set up after 1980 should be exempt as there was equal opertunity from then. But like the farms that had those govnt letters stating the state had no interest in grabbing them once once the govnt runs out of money they look for the next white owned asset to redistribute. White residential homes will be next, you will have to pay rent to a well connected black person to be able to live in your own home.