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Tichaona Zindoga The Interview
The Affirmative Action Group, the lobby for the empowerment of black businesses, believes economic turnaround through the Zimbabwe Agenda for Socio-Economic Transformation should be anchored on value addition on minerals. AAG president Dr Keith Guzah (KG) also tells our Senior Political Writer Tichaona Zindoga (TZ) that now is the time for foreigners to ship out of reserved sectors under the indigenisation and economic empowerment programme.
TZ: Zim Asset is the game in town, what are your views on the blueprint as business and as the Affirmative Action Group?
KG: I strongly believe that the Zim Asset blueprint is a broad-based, well formulated plan which will be a spring board for the resuscitation of our economy. What is of paramount importance is a total buy-in by all stakeholders. Government must of necessity craft a value addition law on our minerals. At least a certain percentage of our minerals must be processed and sold as finished products as opposed to exporting them in raw form as we lose on the side minerals, by-products. Processing of our minerals also creates employment. Partnerships with international investors must be encouraged and laws crafted that also secure these investments.
TZ: What are the challenges that business is facing that may impugn economic transformation.
KG: The cost of borrowing and the stringent conditions attached to it makes it difficult for the ordinary Zimbabwean to prosper today. Staying in business is such a nightmare. It’s unfortunate that our worst enemies are those that benefited immensely from Government programmes of Indigenisation and Economic Empowerment and are not interested in assisting others. Some banks have interests that thread across the entire economic spectrum, but are not prepared to assist the country by ensuring that they lend a helping hand to small to medium enterprises. Until such time, we will continue to swim in the murky waters.
TZ: With elections gone and a new minister in place, what are your expectations regarding indigenisation and empowerment?
KG: It is common knowledge that the Zanu-PF Government, riding on its economic empowerment programmes and its long history of being people driven, got the landslide victory on the back of what has been achieved so far and what was promised in their election manifesto – to Indigenise, Empower, Develop and Create Employment. The Affirmative Action Group welcomes the appointment of Honourable Nhema to this portfolio. He is and has always been a major supporter of our empowerment initiatives and as such, we expect to be engaged in all matters empowerment. We are waiting for him to call for his first stakeholders meeting to enable him to collate data on what exactly is obtaining on the ground.
TZ: You have once come out expressing disappointment on apparently a few people who have been benefiting from indigenisation among other shenanigans, what has been your observation over the past year and how should this situation be tackled?
KG: It is unfortunate that the system remains favourable to the well connected. The President of Zimbabwe, Baba vaMugabe has been very clear when it comes to empowerment: It is not for a select few. We have also noticed that it is the same people that form consortiums in all the sectors of the economy at the expense of the marginalised autochthonous Zimbabweans. The Affirmative Action Group seeks a transparent Indigenisation and Economic Empowerment programme that benefits all. To that end, we remain committed to be the face of the faceless and the voice of the voiceless. Zimbabweans need to be empowered. Zimbabweans deserve to be empowered.
TZ: How are young people faring in business, and at AAG what is your take on youth empowerment and young people in business?
KG: The AAG encourages youth empowerment as they are the future leaders. We however, have a very sad and unfortunate scenario with the youths of today. So many banks availed small loans to the youth all over the country, including the Ministry of Youth Development, Indigenisation and Empowerment. More than 60 percent have failed to repay the loans. In fact, Minister Nhema was very much disturbed with the figures of youths that have just decided to disappear or change their addresses. It is actually a cause for concern. That is why at AAG, we encourage the youths to be trained and equipped with entrepreneurial skills first before they are financially empowered.
TZ: Concerns have been raised over the non implementation of indigenisation in the reserved sectors of the economy. How do you read the situation on the ground?
KG: The Affirmative Action Group is mooting an operation dubbed “Pack And Go” to all those that are wilfully breaking our laws by refusing to heed our call that reserved areas are exactly that: reserved! How can we, as Zimbabweans, be forced to compete with some of these players in areas specifically reserved for us? It is the law! It therefore must be followed to the letter. For argument’s sake, how does a foreigner come and cook sadza in Zimbabwe and sell it to us? Where is the rationale to that, moreso when there is a law that prohibits it? How does a foreigner engage in retail business and compete with Zimbabweans, when the law says “No!” We are going to work flat out with the authorities to make sure that this is corrected.
TZ: Reports abound of Zimbabweans being used as fronts by companies that do not want to fully comply with the Indigenisation and Empowerment Act, what’s your position?
KG: We have so many reports and claims that many of the companies that have forwarded their indigenisation plans to the National Indigenisation and Economic Empowerment Board are using black Zimbabweans as mere fronts. This is one of the many issues that we intend to raise with the minister soon. We are also in talks with our sister organisation, the Indigenous Business Women’s Organisation with a view to create a compliance task force that will be independent but with a direct mandate from Government to look into the way these multi-nationals are complying. If the checks and balances are only left to the NIEEB, then we run the risk of not unearthing any irregularities. If we are to achieve any meaningful results, then we have to be as transparent as we can.
TZ: In October, it was reported in the press and national TV that the AAG was spearheading the revival of Bulawayo industry, can you explain the initiative?
KG: Oh yes. We had a symposium on October 15 dubbed “Bulawayo – Industrial scrapyard back to Industrial hub”. A very successful meeting of the minds it was indeed. Major stakeholders in Bulawayo came and made presentations on the way forward. In fact, this was the first symposium that drew stakeholders from the Confederation of Zimbabwe Industries, Zimbabwe National Chamber of Commerce, Bulawayo Business Council and many more. We had one common vision – resuscitation of Bulawayo. We have since put in place a working council tasked with putting together a document on the way forward, to be presented to Baba Mugabe very soon.
TZ: In March 2012, you were recalled to the helm of Zimbabwe’s most vocal and broad based economic empowerment lobby group, the Affirmative Action Group how do you look back on the year?
KG: You will recall that in 2008, I stepped down after six years as the national president to read for my doctorate, thus paving the way for Supa Mandiwanzira, (now Minister of Information, Media and Broadcasting Services). During Mandiwanzira’s tenure, his executive led this organisation to very important economic decision making forums in and around the globe that continue to benefit Zimbabwe.
With that in mind, coupled with the need not to reinvent the wheel but perfect it – it became imperative for my executive to formulate a strategy that would enable us to come up with solutions to be tabled before Government on issues that were and still are a thorn in the flesh for most businesses. It must be noted from the outset that Zimbabwe is still under unwarranted sanctions from the United States of America, Britain and its allies and therefore continues to struggle to create an enabling environment for our businesses to remain afloat, albeit without much success. These sanctions have no place in Zimbabwe. They must be withdrawn forthwith! Without balance of payment support from the International Monetary Fund and cheap lines of credit from the World Bank and other notable financial institutions, our economic woes continue to pile up. On the local front, this scenario has created a very challenging playing field for the small to medium businesses as banks have come up with stringent conditions attached to their dollar. Accessing funds from financial institutions and credit lines from well established multi-nationals has become such a nightmare such that businesses are collapsing daily. Around the country, the courts are registering high numbers of businesses being sued and shut down and properties being attached and sold almost on a daily basis.
It is against this background that my executive prioritised having an all stakeholders symposium with the Reserve Bank Governor, Dr Gideon Gono and the Bankers Association of Zimbabwe (BAZ) in a bid to find common ground. On June 1, 2012, under the theme “Banking for Broad Based Economic Empowerment and Prosperity”, I am pleased to report that we had a very informative and progressive discourse. It was agreed in principle that the issue of collateral/security should not be so much of a sticking point when assessing the viability of a business and its ability to repay a loan. Dr Gideon Gono was very forthcoming with his presentation of an “Industry Supply Chain Based Economic Empowerment as a Vehicle to Equity Based Economic Empowerment Programmes”.
After this symposium, quite a number of businesses managed to get financial assistance from mostly local indigenous banks and continue to do so. Allow me to also point out that banks, by their very nature, are businesses that also need to be supported by law and the business community. It’s unfortunate that we have in our midst, businesspeople who spoil the cake for others by their refusal to honour their obligations to financial institutions. This is one of the sad situations we face in Zimbabwe. Depositors and shareholders money is not free money. When you borrow – pay back!
In July of 2012, we invited the Attorney General to another symposium where we felt it was important for the business community to understand how the legal framework is aligned to economic empowerment. So yes, we have had such a hectic time
TZ: We understand you are in the twilight of your leadership at AAG how has been your comeback and whereto for Dr Guzah from here?
KG: My term expires in February 2014. It has been quite a challenging time and I enjoy working for the people. I may not be seeking an extension to my term due to other pressing commitments. Remember I had to come out of retirement to head this organisation, once again. I am sure the founding fathers, of whom I am one, will find a suitable candidate to steer the ship in the right course. I have since November 1, 2013, enrolled with a University in Zambia to read for yet another Doctorate, this time a PhD in International Relations.
TZ: You attained a Doctor of Business Administration degree in Entrepreneurship and Development last year. What is your thesis on?
KG: Thank you. In short, my thesis is on “The Impact of Affirmative Action as a Bulwark against Economic Imbalances in Post Colonial Zimbabwe (1992 -2012”). It is a descriptive account of the history of the implementation of affirmative action in Zimbabwe. As you may be aware, affirmative action is an instrument of black economic empowerment which takes place against a background of protracted racial discrimination of indigenous black Africans by British Caucasian Anglo Saxons.
The thesis gives context to the invocation of affirmative action for the empowerment of black Zimbabweans. The legal strategy is emphasised from the onset citing the fact that the inequalities in legal knowledge between early Africans resulted in the negotiation of unfavourable colonial pacts leading to the colonisation of the country through treachery and trickery. Through the Indigenisation and Economic Empowerment Act, the commanding heights of our economy are now in the hands of the indigenous, a position that needs to be guarded jealously, by all means.
Online Reporter