(HERALD) ‘Indigenisation Act should empower general public, Parly Committee told

Tuesday, March 16, 2010

(HERALD) ‘Indigenisation Act should empower general public, Parly Committee told

‘Indigenisation Act should empower general public, Parly Committee told
By Lloyd Gumbo

The enactment of the Indigenisation and Economic Empowerment Act yesterday received support from delegates who attended a public hearing in Harare to discuss the impact of the Act on the economy. The meeting was organised by the Parliamentary Portfolio Committee on Budget, Finance, Economic Planning and Investment Promotion.

The committee is chaired by Goromonzi North House of Assembly Member Cde Paddy Zhanda (Zanu-PF). The delegates, however, urged Government to put in place mechanisms that will empower the general public instead of a few elite indigenous people.

Indigenous Business Development Centre chief executive officer Mr Joshua Marufu, said the Act was long overdue.

"The Act is welcome and people should not be worried about this talk of scaring away investors. Everyone knows that if you invest in a foreign country, there are conditions to that and Zimbabwe is no exception," Mr Marufu said.

"There is a provision of Employee Share Ownership and this brings responsibility on the side of employees as they will have that feeling of owning the company.

"If there are any loopholes in the Act, people should just amend them than to dismiss the whole law, which seeks to empower indigenous Zimbabweans," said Mr Marufu.

Zimbabwe Indigenous Economic Empowerment Organisation president Mr Paddington Japajapa, concurred with Mr Marufu, adding that political independence without economic independence was hollow.

"We urge the inclusive Government to embrace the Act because it seeks to help Zimbabweans to participate in the mainstream economy. The Act should be invoked with the urgency it deserves because there are imbalances which we cannot ignore.

"It’s unfortunate that it is the Zimbabweans who are talking about scaring away investors and not investors themselves," Mr Japajapa said. Mr Pachikayi Mubhonderi added: "Indigenisation is the best thing that can happen to any people. I become worried when people say the Act will scare away investors when it protects the citizens.

"The Act seeks to protect our citizens who have been disadvantaged for many years."

Mr Michael Mudyirahove said Zimbabweans had been subjected to discriminatory laws over the years.

"Now it is high time we address these disparities and it is logical for every Zimbabwean to support it.

"When entrenched systems are to be corrected, there is always acrimony but we cannot stop a noble idea because a few individuals are against the idea," he said.

Mr Eddie Katsande said the Act was welcome but the concern was around its implementation.

"Indigenisation is good but mechanisms should be put in place to make sure all people benefit. It cannot be empowerment if it is only those with political muscle who are going to benefit. The majority should benefit and not a few already-rich indigenous people," he said.

Mr Katsande’s sentiments were echoed by Ms Angeline Maboreke, who said the Act should be used to empower Zimbabweans.

"The Indigenisation Act is a fantastic idea but Government should put its house in order to make sure poor Zimbabweans are not used as fronts.

"We know there are people who might want to use this Act as a political ticket therefore we say the general public’s interests must be protected in the implementation of this law," Ms Maboreke said.

Mr McCarry Wilson of the Commercial Farmers Union, said Government should promote creation of more businesses than focus on redistributing existing businesses.

"This is a noble idea but Government should focus more on creating more businesses than try to redistribute these businesses.

"People should also make sure that they don’t scare away investors because no investor can invest in an economy whose future is uncertain," he said. Regulations governing the Act were gazetted last month and became operational on March 1. From this date up until May, companies worth over US$500 000 should furnish Government with detailed plans on how they will conform to the legal requirement that Zimbabweans own 51 percent of the shareholding.

President Mugabe and Prime Minister Morgan Tsvangirai have defended the indigenisation laws saying they promote Zimbabwean interests and must not scare away investors.

l See picture on Page B1

Labels: INDIGENIZATION AND EMPOWERMENT ACT (ZIMBABWE)