adminBusiness Correspondent
THE revival of the manufacturing sector in Zimbabwe is premised on improving the business operating environment, reducing the cost of doing business and adjusting business models to be pragmatic to the evolving global environment, experts have said.
Despite a plethora of challenges in the economy, experts say the manufacturing sector has enormous potential to recover provided there is a paradigm shift in policy implementation to create a business-friendly environment attracting foreign direct investment.
Failure by industry to attract foreign capital has to an extent been attributed to the indigenisation law, which calls for foreign-owned firms to cede 51 percent of their shareholding to locals.
However, the debate on indigenization and FDI recently took a new twist which saw the new Minister of Youth, Indigenisation and Economic Empowerment, Cde Patrick Zhuwao, taking a bold stance on the issue.
Minister Zhuwao, during his countrywide familiarisation visits of his new ministry, blasted all and sundry that has been proposing the reversal of the indigenisation policy.
Commenting on the issue, economic analyst Mr Crispen Mukarakati said as much as the indigenisation policy was a positive move towards empowering locals, there was need for Government to revise the law to ensure flexibility in its implementation.
“The indigenisation law must be modified to attract FDI as the Government has no money to finance the recapitalisation of industry,” said Mr Mukarakati.
He said industry recovery in Zimbabwe could only be financed by FDI as the Government is cash-strapped to fund such projects.
However, during his Mutare visit, Cde Zhuwao argued that to this day, Africa is still the world’s engine-room for economic growth, but was reaping little profits at home, a concept he described as the “black man’s burden”.
”Indigenisation was designed to allow Zimbabweans to free themselves of this centuries’ old burden. Lifting this crushing millstone is our generation’s greatest struggle,” said the minister.
Cde Zhuwao said years from now, economic books will use Zimbabwe’s indigenisation programme as a model for African decolonisation.
Manicaland Zanu-PF Youth League secretary for administration Cde Victor Saunyama (Chief Saunyama) said indigenisation was the much needed bridge between poverty and industrialisation, and therefore, transforming Africa into a First World power.
Online Reporter