Maravi

(HERALD) 15 sectors identified for indigenisation

15 sectors identified for indigenisation
Saturday, 10 December 2011 23:12
From Kuda Bwititi in Bulawayo

Fifteen sectors, including banking and aviation, have been earmarked for indigenisation in line with efforts to spread economic benefits to the majority of Zimbabweans, a Zanu-PF Politburo member has said.

Speaking at the party’s 12th Annual National People’s Conference in Bulawayo on Friday, Secretary for Indigenisation and Empowerment Cde Saviour Kasukuwere said a sector-specific strategy had been adopted to help fine-tune the empowerment drive and expand the beneficiation framework.

Other identified sectors include transport, energy, manufacturing, tourism, road transport, construction and engineering, trade, agri-finance, mining, entertainment, education, sport, information communication technology and culture.

Cde Kasukuwere proposed the indigenisation of all banks.

“All banks and other financial institutions shall fall in the reserved sectors of the economy even though exceptions may be made by the minister where there are good reasons for allowing non-indigenous investments in the sector,” said Cde Kasukuwere, who is also Minister of Youth Development, Indigenisation and Empowerment.

“Locals have the lion’s share in terms of the number of banks in the financial sector. Sixty-eight percent of the banks are indigenous.

“However, foreign banks have an asset base of more than 45 percent. This is worrying considering that they are very few.

“It has been established that non-indigenous banks have the highest deposits and balance sheet size, but only lend an approximate 28 percent of their deposits, whilst CBZ, with high deposits comparable with the foreign-owned banks, has a higher loan-to-deposit ratio.”

He also advocated the “de-criminalisation” of small-scale miners and the setting up of specialised training centres for artisans across the country.

He said stringent legislation should be introduced to compel all mining companies to list on the Zimbabwe Stock Exchange.

He said: “We must now be talking of the primary listing of our mining companies on the ZSE and not on foreign stock markets, which provide little benefits to our indigenous people.”

Cde Kasukuwere said there was need for Government “to give preference to indigenous transport operators when it comes to its business . . . and reasonable rates of excise duty and taxes should be charged for the importation of spares for indigenous transport operators”.

He was concerned about the proliferation of illegal operators who have invaded the sector. The energy sector should also be indigenised, he said.

He also recommended the reintroduction of the 75 percent local content policy in broadcasting.

“The construction and engineering sector is generally dominated by non-indigenous players. The engineering consultancy field is dominated by four non-indigenous companies while building and the civil engineering construction sub-sector is dominated by non-indigenous companies.”

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

posted by MrK @ 5:30 PM