Review of indigenisation linked to EU rescue package

via Review of indigenisation linked to EU rescue package | SW Radio Africa by Tichaona Sibanda on Wednesday, June 4, 2014

The ruling ZANU PF government is so desperate for cash it appears to be willing to modify its controversial indigenisation policy.

It is believed the party has taken this route to ensure the ongoing re-engagement efforts with the European Union (EU) remain on track, as there is likelihood the government will receive a direct multi-million dollar rescue package from Brussels.

The party is also desperate for the EU to drop restricted travel measures against President Robert Mugabe and his wife Grace.

Almost $320 million is up for grabs from the EU, which indicated that the money will be made available as soon it lifts the restrictive measures it still has in place against the first family. Mugabe and Grace are the only two that remain targeted after the EU removed the bulk of the restrictions.

Luke Zunga, an economist and chairman of the South African based Zimbabwe diaspora development chamber, said the usually intractable party has realised the only way of attracting investment is to change their policy on indigenisation.

Zunga told SW Radio Africa’s weekly Hidden Story program that the fact cabinet and the politburo have prioritised discussions on the policy means they’ve realised it’s preventing investment.

On Tuesday, President Robert Mugabe’s cabinet ordered Empowerment Minister Francis Nhema to craft a paper clarifying government’s position on the Indigenisation Act. On Wednesday the politburo was set to deliberate on the proposed amendments to the indigenisation law.

‘The indigenisation policy has been fundamentally wrong from the beginning. There is no way you can grow an economy by taking away somebody’s business. Such a practice does not represent growth, it is merely distributing ill-gotten wealth to others to destroy,’ Zunga said.

He explained that such populist acts appeal during an election period because people want to get something for free.

‘But as a policy for developing an economy and encouraging investment it falls flat. There is pressure from South Africa for them to change the law.

‘EU companies are also pressurising their government to take action against the policy…and that is where re-engagement starts,’ added Zunga.

 

COMMENTS

WORDPRESS: 7
  • comment-avatar
    Mlimo 8 years ago

    Why is the EU interfering again? Zanupf are just going to loot the money and the EU will extend the ordinary people’s suffering by another 20 years. Let Zimbabwe collapse so thAt we can start fresh we don’t need the EU we need a new government I cannot understand the liberal EU stay away from Zimbabwe. The people will fix it when the time is right not you. If you loan the money to zanupf don’t expect the people to pay it back when zanupf is gone.

  • comment-avatar
    JOHNSON 8 years ago

    If the money comes from EU it should come directly to the beneficiaries such as certain private sector players and NGOs. This can prevent looting which might take place. We will need close monitoring mechanisms to make this money work.

  • comment-avatar
    Africanson 8 years ago

    Its amazing that you get someone saying “Let Zimbabwe collapse…..”. who suffers when it colapses? who goes to bed with an epmty stomach? If this is the thinking of opposition then we are doomed. We need people who wish our country well

    • comment-avatar
      roving ambassador. 8 years ago

      Sorry Africanson ,Whom do you build Zimbabwe with when Zanu is destroying?

  • comment-avatar
    Petal 8 years ago

    a buffoon must be sweet talking the EU as usual, playing their cards for their own gain – somone needs to pinch their ears

  • comment-avatar
    Petal 8 years ago

    Wonder if the EU know how Gracelands is expanding in Mazowe??

  • comment-avatar
    Petal 8 years ago

    Or do theyknow of Enoch Kamushinda Bobs personal banker in Malyasia???