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In an interview with The Herald Business, Ambassador Tripathi said although foreign direct investment was essential, it should not come “indiscreetly”.
“Indigenisation should be done and with great caution and care framing policy and more than that implementing policy in a very transparent manner otherwise there is no meaning of any such policy,” he said.
Mr Triphati said there should be very amicable and good balance between foreign investment and indigenisation because policies should not be formed in a way that discourages foreign investment.
“Certainly the investor is not coming for charity and in the process benefit the local people.
“There should be real caution and clarity of the law as well as transparency in implementation of the policy,” he said.
He said Zimbabwe, like many other African countries, had no expertise to handle its resources, but investors should not take advantage of this.
Mr Triphati also said indigenisation and empowerment laws should be clear to attract investment which he described as a necessary “evil” for development of industry and infrastructure.
He said India in the 70s embarked on similar programmes and nationalised banks to ensure that local people benefited through extension of loans.
“They (banks) extend money to people who needed it in a very transparent way. We ensured that banks are not money mills, but they are an instrument for development of the country,” he said.
He noted that if the laws are not clear people will not have faith in the process.
“So transparency and clarity are required, as regards to India we nationalised banks, but they are de-nationalised because they were nationalised for a certain period that they extended money to people to start businesses,” he said.
Zimbabwe is currently implementing an indigenisation and economic empowerment programme that compels foreign-owned companies operating in the country to surrender 51 percent equity to locals.
The programme is guided by the Indigenisation and Economic Empowerment Act.
Online Reporter