Maravi

(NEWZIMBABWE) PM says indigenisation necessary

COMMENT - Typical neoliberals. They know how unpopular their covert and overt policies are, so they can't help back the ZANU-PF's actual policies in public. The MDC stands for - foreign ownership of the economy and the land and economic sanctions to get to power.

PM says indigenisation necessary
by Staff Reporter
18/06/2011 00:00:00

PRIME Minister Morgan Tsvangirai has again voiced his support for the country’s indigenisation programme after ditching his initial reservations over the policy which he previously dismissed as an asset grab by the elite. Speaking in the Midlands province where he toured several companies, Tsvangirai said the programme was not aimed at punishing foreign investors.

"What we are talking about is broad-based empowerment of our people. The majority of Zimbabweans should be brought into the economy, but of course we need partners to ensure social improvement and upliftment of our people,” he said.

"We do not seek to punish investors by any of our policies. Those sceptical of the indigenisation policy should come and we can always sit and address the challenges. No one really wants to engage in a game of fixing people.”

The MDC-T leader was previously opposed to the programme which requires all foreign-owned companies to localise control of at least 51 percent of their shareholding.

In a statement marking the country’s 31st independence anniversary in April Tsvangirai said the policy would not benefit the country’s poor as claimed by President Robert Mugabe.

"Now thirty years after independence, we are being told by multi-millionaires and multiple farm owners that indigenisation will set us free," the MDC-T leader said then.

"By this, they are not referring to broad-based empowerment of the ordinary man and woman, but the looting and plunder of national resources by a small, parasitic elite.”

Tsvangirai however made a u-turn at the World Economic Forum for Africa meeting in South Africa a month later where he made clear his support for the controversial programme.

Meanwhile, Empowerment Minister Saviour Kasukuwere – who accompanied Tsvangirai on the Midlands tour – said the government was still keen to work with foreign investors in developing the country’s economy.

"Government is not against foreign investors but we are saying let there be shared ownership with local people," he said.

"Indigenisation is all about inclusive growth. We do not want to destabilise our economy but at the same time we want to ensure participation of local people in the economy.”

Critics claim the programme will scare-away foreign investors and harm the country’s economic recovery while central bank governor, Gideon Gono has argued that the majority poor would not benefit from the model government is implementing.

“It has to be realised that not everybody can fit or benefit from the equity-ownership model we are pursuing. Only a few will and that's a fact,” Gono said in a recent interview.

Labels: INDIGENIZATION AND EMPOWERMENT ACT (ZIMBABWE), MORGAN TSVANGIRAI, SAVIOUR KASUKUWERE

posted by MrK @ 6:29 PM