adminthe Western powers, the nation’s economy, until then touted as a shining example for all of Africa to emulate, imploded so rapidly that were it not for some inner resilience, endowments and astute leadership, it would have all but crumbled by now.
In some countries, particularly the United States and the EU generally, the relationship between the state and the private sector is almost symbiotic. In the US for example, the so called military industrial complex is nothing less of a synergy between the state and the private sector. There is open collaboration between corporate America and Washington. Not so in Zimbabwe?
This is why when President George W Bush invaded Iraq he took along his friends from Halliburton, the American oil giant, where his deputy Dick Cheney was formerly boss. Up to this day, Halliburton is looting Iraq’s oil resources without any qualms. This line is played out in all scenarios that the Western powers have found it necessary to defend their “national interests”, read economic. To be sure it is a fine line one can draw between the corporate and the state actors, hardly mutually exclusive.
Even during crucial elections, business through organized lobbies (more than 500 in Washington alone) works to influence the outcome of elections looking at which political parties and candidates are more likely to be friendly to their business and economic interests to the extent that the influence of big business in politics has become all-too-pervasive. This is the American way.
The question then is whether you take money from the tobacco lobby, with giants like Phillip Morris whose chair is former British prime minister Margaret Thatcher or the less powerful but also influential anti-smoking lobby. Ever heard of British-American Tobacco (BAT)?
In the UK a more recent example is the current debate on what to do with the Levinson Report on the media with loud murmurs that the hand of prime minister David Cameron is tied by the media conglomerates that helped elect him into office, to be sure one Rupert Murdoch whose newspaper was caught up in the phone-hacking scandal that shocked Albion.
Issues are not the same at home in Zimbabwe. One reason could be that there are very few companies that can truly call themselves Zimbabwean, but they exist. In Asia for example, particularly Japan, Korea, Indonesia, Malaysia, Singapore, India and so on, there are large conglomerates with indigenous ownership, that opening up space to outsiders is not a given. Some of them, like Malaysia, have tough indigenization laws, where majority or significant ownership of stock in any business, particularly where sovereign wealth is concerned, has to be indigenous.
The scenario is totally different in Zimbabwe at present. Perhaps this is why the imperative for indigenization requires much more commitment, serious and deeper scrutiny that goes beyond the Kasukuwere/Gono turf contest. Whatever happened to all that talk of a Sovereign Wealth Fund (SWF)? In Malaysia this is a powerful economic tool, but I digress.
The question then arises: What is the relationship between the state and business in Zimbabwe? How does this impact on the state of the economy, at any time, but more so now, when urgent responses and new initiatives are needed to confront unprecedented new challenges the nation is facing? Do we have patriotic indigenous business conglomerates in Zimbabwe and if so how is this manifest? What is the essence of Zimbabwe business’ patriotic fervor?
Recently there has been much hullaballoo about Government’s initiative to raise funds from companies to finance the crucial polls due this year to elect a new government after all these years of an inclusive Government that has at best been dysfunctional. Is this improper, given the state of our economy and the scant revenue trickling into Treasury?
To be sure, Zimbabwe, as has the West attempted to respond to the financial crisis of their own making, needs to come up with homegrown responses to its own problems. There is no longer time for the blame game, but real need for severe introspection. The question is what to do? What can business do? Are there leaders in business, courageous and bold enough to jump into the choppy waters?
One Zimbabwean businessman, a lone ranger of sorts, has dared to go into areas where even Angels may fear to tread. His views on this matter are extremely pertinent, not because of who he is, or how wealthy and powerful, but because of how daring he is in challenging the status quo. This is one Aguy Clement Georgias, a self-made businessman, industrialist and entrepreneur, but above all, a fearless social activist.
He has been called several things by different people, from the unpleasant and less salutary to lavish and generous praise and accolades from others that matter. He has, in the proverbial sense, been the little David who has not allowed fear and intimidation to stop him from confronting real Goliaths.
Now a senator in Zimbabwe’s upper House of Parliament, and a deputy minister of public works, both positions being by appointment by President Mugabe, Georgias remains fearless and outspoken on matters of state and business interface.
Georgias, is most famous, not for founding Trinity Engineering, but for his fearless contest with powerful banking institutions that resulted with his victory in the form of the re-instatement of the ancient Roman-Dutch Law In-Duplum Rule on Zimbabwe’s statutes. Put simply, this is a law that makes it illegal for banks and financial institutions to charge interest that exceeds the principal amount loaned.
In the past five years, he has single-handedly taken on the EU over sanctions imposed on Zimbabwe, since his name was added on to the EU travel ban list in 2007. Thanks to his litigation, first at the British High Court, but now at the EU general court, his name was de-listed last year.
But still at enormous cost to himself and his companies, Georgias has sought reparations with the EU in a case that is still pending at the EU General Court in Brussels. We asked for his views and this is what he had to say:
“It is interesting that you should ask! This is a matter I find intensely troubling to me. When I was Deputy Minister of Economic Planning and Development, I initiated dialogue with the private sector to seek ways of bringing the state and business closer to one another. No sooner had the GNU come into being that the idea fizzled.”
“To come to your question, I believe there is a lot that can be achieved with synergy and partnership between business and the state. I have one example. That of EU sanctions on Zimbabwe where I have a case pending. It is my view that because of the contagion effect sanctions have on business, corporates ought to be immensely concerned. But no, they remain aloof. There is fear to take a position, except for occasional statements from CZI and so on.”
Says Georgias: “Only last week, I had thoroughly depressing meeting with an MD of a prominent transport company whose founders I have had a long-standing business relationship with. I have written to several companies asking for financial assistance to pay for my case with the EU. Most have politely declined to help.”
“But here’s what riled me the most. I came to the assistance of this company not once but more than three times. On one occasion, their company faced closure over problems with the tax department, customs and immigration; at another time all their trailers were impounded on all border posts, not allowed to enter or depart Zimbabwe and at another occasion, they had police and other government departments surrounding their premises with no one allowed receiving or making phone calls.”
“I appealed on their behalf to the late Vice President Muzenda after which they got relief from Government. Today, needless to say, they are among the biggest road haulage transport operators in Zimbabwe. Now instead of just telling me that he was not in a position to assist, the MD goes on a tirade of insults, and that he is only waiting for the next elections to see if Zanu-PF gets out of power in order that he can bring investors into the country? The same Zanu-PF that saved his company from closure! And what does that say to your question?’’
But the issue of ill-conceived and poorly defined state and business relations and a meeting of minds between the two also sucks-in senior government ministers, according to Georgias who says he would have expected support from the Zimbabwe Government in his fight with the EU. This has not been forthcoming. Instead, some senior ministers who are eminently aware of the circumstances of his company are blocking Government projects intended for his company to undertake.
Clearly, the matter of state/business relations ought to be interrogated rather vigorously and more purposefully.
Online Reporter