adminThe Herald, December 20, 1979
SOME Africans have allowed themselves to be used as a “front” by established European and Asian businessmen seeking additional import allocation, said a spokesperson from the Ministry of Commerce and Industry.
“It is necessary to make a careful examination of all applications”, said the spokesman commenting on criticism from an African businessman that the Ministry had done little to assist African businessmen.
The Ministry official said that to spread the private enterprise system and encourage the untapped reservoir of enterprise and ability among the African population, instructions were given earlier this year that foreign exchange allocations might be granted “where they might not otherwise have been made.”
However, it was stipulated that the level of these was to be related to existing allocations.
Mr Gordon Muchanyuka, who registered an import/export business in May this year, said: “As soon as the new allocations were announced, I applied for currency to import glass beads for the Manufacture of African hand-made home crafts for export.
“I wanted $11 000 which would buy sufficient beads to keep 5 000 women employed in the Salisbury area alone and net a return of about $350 000 in exports.”
Mr Muchanyuka claims he has established markets for hand-made work in Italy, America, and West Germany.
It was confirmed that Mr Muchanyuka’s application to import glass beads has been received by the Ministry, but that it is still under consideration.
The spokesman for Commerce and Industry said: “These businessmen must appreciate that we are not yet in a position to spend large amounts of foreign exchange on the importation of luxuries.
“No one should be under the misapprehension that a quick fortune is to be made through becoming an importer of non-essential items which are in short supply.”
A number of allocations have been made to African businessmen to enable them to establish themselves in the import business.
“It is therefore, unfair to say that nothing has been done to assist African businessmen,” the spokesman added.
The present system of commercial foreign exchange allocations is based essentially on 1965 past performance, although an exercise is underway to review and update these allocations.
Very few African businessmen were engaged in import trade in 1965 and since that time they, in common with other businessmen, have found it difficult to meet the criteria for entry into the allocation system.
These criteria provide for allocations to be made to persons or firms who can fulfil a need which is not at present being satisfied or who can import essential goods at a lower foreign exchange cost than existing importers.
LESSONS FOR TODAY
In order to advance black economic empowerment, there is need to regulate against business “fronting”, as is the case in South Africa.
Forty-three years after independence, both the First and Second Republics have continued to create conducive climates that allow black people to be major players in business, although some black people still want to play second fiddle, due to their inferiority complex.
Black people are no longer on the fringes of economic activity. They are now into mining, agribusiness, tourism, mobile networks, construction, manufacturing, banking, retail, transportation, etc.
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