(HERALD) Indigenisation ideal for nation: l Japan reaping fruits

Sunday, September 25, 2011

(HERALD) Indigenisation ideal for nation: l Japan reaping fruits

Indigenisation ideal for nation: l Japan reaping fruits
Sunday, 25 September 2011 00:43
By Kurai Masenyama

There has been widespread debate on the merits and demerits of the indigenisation and economic empowerment programme currently being championed by Zanu-PF and implemented by the Government through the Minister of Youth Development, Indigenisation and Empowerment, Cde Saviour Kasukuwere.

The rationale for the indigenisation and economic empowerment programme is evident at three levels, which are political, social and economic. There is a tendency by commentators, defenders of white capitalism and critics alike to downplay the significance of the first two factors while completely misrepresenting the nature of the impact of indigenisation on our national economy.

I reaffirm the relevance of social and political factors supporting indigenisation which are well documented with references in the African Charter for Human Rights and various international statutes on socio-political rights.

I, however, deliberately place more emphasis on the economic rationale for indigenisation and widespread people empowerment.

My point of departure is that indigenising the economic base (through giving resource ownership and control to local Zimbabwean citizens) and economically empowering the majority of Zimbabweans is actually good for businesses as it facilitates growth, resulting in more profits for entrepreneurs.

Coming back to the issue of economics, it is my argument that it makes more business sense for big corporates to nurture and empower local people because they will give all to the business they better identify with.

This cultural attachment to your business is well documented in literature as evidenced by the Japanese Theory Z that partly explains why Japanese businesses boomed so quickly after the Second World War.

Similar to the argument that various authors have put across with regards to employee wellness, particularly in HIV and Aids workplace programmes, that it is actually cost effective to invest in awareness and treatment rather than to pay the costs of training replacements, early retirement packages, funeral benefits, etc, embracing diversity through people empowerment, can improve profitability.

If foreign companies embrace economic empowerment for wider Zimbabwean citizens, they can leverage indigenisation for profitability.

Empowerment across the entire economic value chain can be at the centre of economic growth through capacitating small to medium enterprises, and the creation of a bigger and financially stronger middle class whose consumption habits will fuel further growth.

Small to medium enterprises (SMEs) are the engine room for economic growth. Hence, if foreign companies support the growth of these enterprises by procuring a greater part of their supply needs from them, they will continue to grow and absorb more working people into the economy.

This is particularly important because SMEs have the ability to create and retain jobs even in difficult times as evidenced by their limited retrenchment activities during the economic recession that hit the world in the past two or three years.

Another major aspect through which the indigenisation and empowerment programme can fuel economic growth is through the creation of a bigger and more financially resourced middle class whose consumption patterns and taste for luxury will boost the economy.

For example, a bigger pool of company owners or highly resourced managers and professionals will stimulate demand for housing, cars, insurance and other goods and services that will bring money into the economy.

Expansion of tourism marketing efforts to indigenous Zimbabweans will result in more domestic visitors as Zimbabweans will be having the money to spend visiting their own country’s spectacular resorts.
Empowered Zimbabweans can also plough back into the economy by investing in their areas of origin, particularly in the rural areas. For example, an empowered indigenous person will build a magnificent rural home, providing employment for local people who work on the roads, maintenance of the house, security, etc.

This is unlike, say, an investor from Pakistan, United Kingdom or America who will sift all the profits abroad, purchasing luxury resorts, yachts, etc, creating employment for people, and paying large quantities of money for goods and services in their own countries, thus facilitating their economic growth.

So, as a people we should not be misguided and misled by people who constantly argue that indigenisation and people empowerment is bad for the economy. Countries that have empowered their people the world over are reaping the benefits through enhanced economic growth.

Therefore, we should not be hoodwinked by critics giving a biased view on the economic impact of indigenisation. These scaremongers allege that indigenisation will scare away investment when, in fact, their argument is meant to protect the foreign interests already dominating the scene.

As we give impetus to the indigenisation and economic empowerment agenda, we are not oblivious to the importance of economics in the dynamics of any given nation.

- The Sunday Mail

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