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Business Reporter
THE ongoing indigenisation and empowerment drive presents major opportunities for unlocking domestic economic growth and should not be viewed as an obstacle to foreign direct investment, Reserve Bank of Zimbabwe (RBZ) Governor Dr John Mangudya said yesterday.Responding to concerns over perceived lack of clarity regarding the government’s indigenisation policy during a meeting with business executives in Bulawayo, the central bank boss said the empowerment thrust was “very clear and simple to understand” and condemned negativity around its implementation.
“Regarding the investment climate the indigenisation policy is very simple to understand. Some people say it is an obstacle and we don’t believe in that,” said Dr Mangudya.
While the indigenisation law seeks to empower Zimbabweans to own means of production and be in charge of the economy by ensuring they own at least 51 percent shares in public companies, the policy has attracted a lot of negative sentiments from pessimists.
The government has said while Zimbabweans are entitled to 100 ownership of natural resources, the policy was not implemented in a blanket approach as it takes into account sector specifics and allows investors to have equity and return for their money.
The same law provides for establishment of community share ownership trusts, which have started bearing fruits in the form of development projects through proceeds from natural resource exploiting firms.
It also provides that workers own 10 percent shares in companies with certain sectors such as retail being wholly reserved for locals.
The prevailing negativity about empowerment, Dr Mangudya said, was stage managed resulting in investors shunning the country despite the friendly opportunities it presents.
“The policy is open to businesses, it takes into account joint ventures between locals and foreigners, acknowledges that economic sectors are different and allows contract farming. Its all clear,” explained Mangudya.
“Banc-ABC for instance is almost 100 percent owned by foreigners and AfrAsia is about 80 percent. We’ve got good cases and what’s not clear it’s us commenting negatively. We’re so negative about ourselves as Zimbabweans and it’s high time we become positive.”
He implored Zimbabweans to bury the past and believe in their capabilities to move forward.
Dr Mangudya said negative publicity about the country was scaring away investors and escalating the effects of sanctions on the economy.
“Zimbabweans the time is now for us to move forward. Let us avoid the tendency of thinking that someone from somewhere will come and do things right for us,” he said.
Dr Mangudya acknowledged the historic land reform programme annoyed the West and its allies who responded by imposing illegal sanctions on the country, but said the issue must not be used to tarnish the country’s investment image.
“Zimbabwe has never confiscated any business. We respect property rights. The land issue is an emotional political matter that should not be used to tarnish business operations,” he said.
On Sunday Youth Development and Economic Empowerment Minister Francis Nhema said Zimbabweans should not be apologetic about claiming what is rightfully and legally theirs.
He urged entrepreneurs to grab opportunities offered by indigenisation and transform the country’s economy.
Bongani Ndlovu
Online Reporter