Maravi

(ZP) Empowerment, opportunity for Zimbabweans to have real stake in their own economy

Empowerment, opportunity for Zimbabweans to have real stake in their own economy
Tuesday, 16 November 2010 15:20 Features

REPORTS that some Zimbabwean businessmen are conniving with foreigners to defeat the objectives of the Indigenisation and Economic Empowerment Act by agreeing to be fronts, are disturbing.

What makes it even worse is that these are not ordinary people, but men and women of means who should know better.

These are people already involved in business who should be able to appreciate the value of their country’s natural resources.
The Act stipulates that foreign-owned companies with an asset value of US$500 000 or more should cede 51 percent of their shareholding to locals.

As President Mugabe has repeatedly explained, this is meant to put indigenous Zimbabweans in front and not for them to be mere "fronts".
Whether it is lack of self-esteem or the curse of poverty that causes someone to be used as a window dresser remains a mystery.
The National Indigenisation and Economic Empowerment Board needs to educate the people of Zimbabwe about the programme. People need to know that if they are caught acting as fronts they would be prosecuted and could be imprisoned for up to five years. We believe this sentence is deterrent enough if people are made to know about it.

Because a problem now exists, there is need for the board to go on a media campaign to educate Zimbabweans about the indigenisation and economic empowerment programme and about the dangers of subverting it. Zimbabweans need to know that the law gives them a platform to negotiate for joint ventures with their foreign partners.

It is an opportunity for them to have a real stake in their own economy, which for so long has been dominated by outsiders.
Perhaps the reason why some end up as fronts is that they don’t seem to have the capacity to raise the necessary funds to go into partnership with the foreign business people. The funding part of the programme still remains a grey area. If that is properly put into place it would be easy for Zimbabweans to go into consortiums and dominate most of these major companies.

As it is, most of the deals that are being concluded are dubious and may not pass a thorough scrutiny.
Without the necessary funding knowledge and accessibility, the programme will benefit a small circle of people who are already privileged.
Greed therefore stands as a real threat to the indigenisation and economic empowerment programme.

As long as the majority of the people, who would ordinarily qualify, feel left out of the programme, it will lack credibility and is open to being challenged in the future.
The programme offers an opportunity for even the young people to get excited about their country and their future and should not be spoiled by a few people.
The Youth Empowerment Taskforce has already written to Minister Saviour Kasukuwere raising their concern. The Minister is known to be passionate about youth empowerment and has worked hard to promote the indigenisation and economic programme.

He needs the support of everyone in spreading the national cake to as many people as possible until we have a strong and vibrant black middle class to drive our economy.
Eventually, a few will rise to be major economic players not only locally but also globally.

They will have the current generation of leaders to thank for empowering them.

Labels: INDIGENIZATION AND EMPOWERMENT ACT (ZIMBABWE)

posted by MrK @ 8:53 AM