Online Reporter
OUR country has been attracting much foreign investment over the past decade or so.
We have thousands of Nigerians, Congolese, Ghanaians, Chinese, Indians, Britons, Americans and so on who are pumping billions into various sectors of the economy, including mining, energy, manufacturing, agriculture, road transport, as well as quarrying. They are providing important goods and services, creating jobs, and contributing to the rapid growth in the gross domestic product in recent years, now estimated at $44 billion and expected to end the year at around $53 billion.
Their investment is welcome.
However, a more detailed analysis of the foreign investment will show that the greatest number of foreigners in business locally are in the more ordinary sectors in which one will need as little as $1 000 as start-up capital, up to $10 000 in a few cases.
Indeed, we would be stretching the term foreign direct investment (FDI) too much if we include the foregoing sums in our calculation of FDI.
That is what the Government had in mind when it, in the original Indigenisation and Economic Empowerment Act, announced specific sectors for investment by locals only.
Cabinet asserted that position on Tuesday.
Information, Publicity and Broadcasting Services Minister Dr Jenfan Muswere said the policy would adopt a structured approach to ensure citizens benefit from investing in strategic areas.
“Henceforth there will be exclusive reservation for local citizens in the following sectors: artisanal mining; barbershops, hairdressing and beauty salons; employment agencies; bakeries; advertising agencies; borehole drilling; clearing and customs; valet services; provision of local arts and crafts, marketing and distribution; tobacco grading and packaging; pharmaceutical retailing; estate agencies; transportation including passenger buses, taxis and car hire services; haulage trucks and logistics services; grain milling; brick moulding; quarry mining and granite mining,” he said.
What we want is foreign investment that adds real value to the economy, adding only that kind of value that locals cannot add. We want foreigners to bring millions, nay billions, into large-scale mining, building of power plants, factories to manufacture steel, and so on.
That is the real investment that we expect, not someone who comes from their home country on a bus to, for lack of a better term, invest in a brick-moulding facility, a grinding mill, one or two taxis, a bakery or a barbershop.
Anyone can do those things. You do not need to possess any special skill or fat bank account to start that sort of business.
So, we are with the Government on its decision to ring-fence the 18 sectors that need lower initial capital for locals. Foreigners are, as usual, very welcome, but they will be free to put larger sums of money in larger businesses.
Our people must take the Government’s decision as a call for them to invest in the sectors reserved for them. Not much money or skills are needed, just their drive to succeed.
