Maravi

(NEWZIMBABWE) Empowerment critics backward: Mugabe

Empowerment critics backward: Mugabe
by
27/03/2010 00:00:00

PRESIDENT Robert Mugabe has dismissed as “backward” those who are opposed to the government’s contentious empowerment legislation and its supporting regulations which took effect at the beginning of March.

Addressing the Zanu PF central committee meeting at the party’s Harare head office on Friday, Mugabe said the controversy surrounding the country’s indigenisation legislation was being fanned by individuals who are content to remain employees in businesses owned by foreigners.

"There are a lot of companies that are being set up in the country but our people still want to be workers and they have never sought to rise above that and become entrepreneurs.

"You are not looking at being the owners of the businesses and when you rise to management levels you get blinkered because that is what the owners want you to be.

“They (foreigners) will continue to be what they have been since 1890, being masters, while you are content to being the chief executive officer,” Mugabe said.

Regulations requiring foreign owned businesses to cede 51 percent of their issued share capital to locals took effect at the beginning of March sparking impassioned debate with some warning that this could hold back the economic recovery by scaring away investors.

The country’s coalition administration appears split along party lines on the issue with President Mugabe’s Zanu PF party supporting the regulations while Prime Minister Morgan Tsvangirai and his party urged a review.

Meanwhile President Mugabe told the Zanu PF central committee meeting that he hoped there were no dissenting voices in his own party over the issue.

"If there are some of us (in Zanu-PF) who oppose it, then they are backward members of the party. Hamudi kuita imi vene venyika? Zvinoshamisa! (Don’t you want to control your country’s resources? It’s Shocking) But I hope they are not many among us who are opposed to the drive,” he said.

Central bank governor Dr Gideon Gono, who is seen as Mugabe’s chief economic adviser, has emerged as one of the key establishment figures to express concern over the regulations.

Dr Gono warned the empowerment issue had been hijacked by individuals with selfish interests and could easily undermine efforts to bring investors into the fledgling economy.

“Let us avoid falling into the trap of being driven by the shrill war-cries and voices of a few who are driving their own private agendas for personal gain in the name of empowerment of the masses. We definitely need to sober up and do what is ultimately in our best interest.

“A balanced and gradual approach has to be followed, ensuring that we maintain the good faith and trust of those investors who are already here, while negotiating our way for more to come in. This is absolute common sense,” Gono was quoted as saying in a local business weekly.

Meanwhile, President Mugabe also bemoaned the minimal indigenous participation in the country’s lucrative resources sector making particular reference to diamond mining.

"Iye zvino tirikutaura ana Chiadzwa, Chimanimani asi hatisati taona (right now we are talking about Chiadzwa and Chimaninimani, but we have not seen) some blacks who have put together their resources to constitute a company to participate in the mining activities.

"We have a lot of geologists vanenge vachingoshandira varungu (who are working for white investors). We have been forced to make a choice between companies that are non-Zimbabwean. Where are the young men we educated over the years?

He said the lack of capital should not hinder locals from starting businesses adding government was ready to offer assistance.

"You should never say ‘hatina mari’ (we don’t have money). Ivo vese vanouya havana mari (most of those coming into the country do not have money either). They come together and look at opportunities of borrowing that exist and indicate that they have the capacity to go into business.

"They do not draw from their pockets but draw from these facilities. Come to us and we can assist you," he said.

Labels: INDIGENIZATION AND EMPOWERMENT ACT (ZIMBABWE), MUGABE

posted by MrK @ 3:16 PM