Maravi

No indigenisation backtrack: Mugabe

No indigenisation backtrack: Mugabe
20/08/2011 00:00:00
by Gilbert Nyambabvu

PRESIDENT Robert Mugabe has insisted that there was no going back on the indigenization programme as key aides appeared to clash on the implementation of the controversial programme.

“We must never surrender the ownership of our resources,” Mugabe told thousands of mourners at the funeral of independence hero and former army commander, General Solomon Mujuru in Harare on Saturday.

“The people fought for their independence and their land. Let us protect the legacy of the liberation war.”

Mugabe spoke as Reserve Bank of Zimbabwe chief, Gideon Gono clashed with empowerment minister Saviour Kasukuwere over implementation of the programme.

Kasukuwere issued a 14-day ultimatum to foreign owned banks Barclays and Standard Chartered as well as several mining firms warning them to comply with the country’s indigenisation laws or risk seizure by the government.

The country’s empowerment laws compel all foreign companies to give up at least 51 percent of their equity to locals as part of measures aimed at the economically marginalised black majority.

But Gono warned that Kasukuwere’s ultimatum “could irreparably harm the nerve-centre of our recovering economy”.

The central bank governor said “dishing out threats to sensitive institutions that are custodians of people’s hard earned savings” smacks of “irrational exuberance during these times of necessary soberness.”
“There are ways of achieving the same objectives as intended by the law through non-confrontational means ….”

Gono has previously warned that the “equity-based” empowerment model being pursued by the government would only benefit a few individuals and urged a re-think of the policy.

However, Mugabe insisted that there would be no “backtracking” on the implementation of the programme.

“We fought so we could be masters also”,” he said. “That is why we need the Empowerment Act”.

Critics have warned that a rushed implementation of the programme could scare away much-needed foreign investment and harm the country’s fragile economic recovery.

Labels: INDIGENIZATION AND EMPOWERMENT ACT (ZIMBABWE), ROBERT MUGABE

posted by MrK @ 10:36 PM