When political gimmick defeats logic

Zanu-PF views the Act as a way of fulfilling the aspirations of all Zimbabweans emanating from why the war of liberation was fought.

However, MDC formations and civil societies view it as a way of nationalising the economy and are of the idea of jobs creation. Some business executives seem to support the MDC conception. Questions that arise are; how do these people want the generality of Zimbabweans to benefit from the economy? How does jobs creation without owning business entities create wealth for Zimbabweans?

During his birthday interview on ZTV, President Mugabe clinically explained how the indigenous programme must be operationalised.
In his clinical dissection of the whole indigenous programme, Zimbabwe’s revolutionary icon clearly chronicled how the concept of indigenisation was to be operationalised.

In the same interview, President Mugabe implored that Minister Kasukuwere erred when he went for a negotiation option with Zimplats.
The President explained very clearly the party’s position which states that Zimbabwe’s 51 percent comes from the resource that will be mined. Zimbabwe also contribute within the 51 percent, an avalanche of human capital and other institutional and structural facilities that work as inputs to the productivity of any mining venture. In other sectors, the understanding should be that the indigenous economic model takes the same model as explained above.

In the banking sector, Zimbabwe’s contribution of 51 percent comes from the economic activities which result in monies being deposited in foreign owned banks.
All sectors of the economy deposit money into depositors’ accounts with the foreign banks. This locally generated money or resource is then sold to debtors at a premium that accrues to the foreign banks. These deposits become the contribution of the 51 percent shareholding that must be given to youths, women and other registered groups.

The selected youths, women and other registered groups then become the new shareholders of the said foreign bank. It must be noted that the purpose of the indigenous and empowerment act is premised on the eradication of poverty of the previously marginalised groups.

And of course this includes the youths, disabled persons and women who must form shareholding entities to qualify.
The idea of “sacred cows” that must be spared by the well intended indigenisation programme seems to gather momentum.

The conception seems to come from those who yesterday, were opposing land reform such as the MDC-T through Finance Minister Tendai Biti. That school of thought appears to have gained a buy in from the neo-liberal academics and politicians.

However, their arguments do not proffer reasonable solutions on the financing of the 51 percent which indigenous people through the empowerment act must get.
Their main idea is not to offer a solution but to make it difficult for black empowerment to be continued. People must be aware that there is a lot of scope in indigenising the economy.

Franz Fanon posits that: “A country that wants to enjoy full independence and create wealth for its people must put in place strategies of creating indigenous capital”.
However, many people who are involved in the debate have a strong feeling that the programme has failed to give quick results.

Many do not appreciate that indigenisation is a process covering varying sectors where some may have immediate positive results whilst some are of a long term nature.

The indigenisation of the economy started in earnest in 2000 with the land reform. The process is now in a phase that has engulfed all other remaining sectors of the economy including banks.

Like what happened during the first phase of the land reform, the process has attracted many analysts from various institutions such as academics, professionals, management executives, civil societies and politicians. However, regardless of varying positions coming out of these debating groups, the exciting thing is that the process was captured in the draft Constitution.

The capturing of the indigenisation process in the draft Constitution was after the majority of people (Zanu-PF supporters) implored its inclusion during the Copac outreach phase.

Zimbabweans are further excited that since the formulation stage of the process; an idea generated by Zanu-PF, Zimbabwe’s ancestors such as Mbuya Nehanda, King Lobengula, King Mzilikazi and Sekuru Kaguvi just to mention a few, opened the geological space allowing valuable minerals to be discovered. This demonstrates that the indigenisation of Zimbabwe’s economy was duly ceremonised by our ancestors. It was duly christened as a God-given process where Zimbabweans must own their resources as majority shareholders.

The shareholding of Zimbabweans duly comes from the land, what is under it and above it, human capital, labour, cash deposits and the goodwill that comes with operating businesses in various communities within Zimbabwe.

It must be pointed out that varying inputs that some talk of must be left for management to consider as they run various business entities.
In this debate, unfortunately, there are some executive management and boards who are putting spanners in the works.

One wonders whose interests these executive management and boards are working for. One believes that if management and boards of directors support the process it will definitely continue to create wealth for Zimbabwe for generations to come. What we see happening with Zimplats where both management and board of directors deliberately declare to stop paying dividends for three years from the date of signing community share trusts is highly deplorable.

This practice should be viewed by every progressive Zimbabwean as a treacherous act that is treasonable at law.
What I want to advise investors is that where they have been getting US$100m they will now get US$49m as profit due to the requirements of this process.

What is important to note is that the US$49m is money generated outside their home country and it could be repatriated to develop their home country. Investors must understand that for Zimbabweans, it is better and wiser to own 10 percent of an elephant than to own 100 percent of a rat.

The elephant in this case is the indigenising of the economy which is an idea generated by Zanu-PF and supported by its legion of supporters.
The rat is the jobs creation or Juice which is a conception of the MDC-T.

Thus, it is better for Zimbabweans to have 10 percent of the elephant which enables the country to generate indigenous capital for economic prosperity as happened in China.

It is naïve for the MDC-T to clamour for the people to get 100 percent of the rat which makes it easy for the West to continuously repatriate profits for the development of their home country.

It must be noted that China’s economic development path started with the agricultural revolution and ended up with industrial revolution which is making it the second largest economy in the world.

Thus, can the MDC formations give us an example of a country that used their conception of Juice and managed to create wealth?
Sadly most academics, politicians, civil societies, policy implementers are explaining the rat, giving little effort on the elephant.

These are the people failing both President Mugabe and Zanu-PF from making the process benefit the nation.
Those who support the programme must offer ideas of enhancing its developmental thrust and how to better the community shares for chiefs and their people to enjoy the fruits of their economic resources.

People must never use their political positions or academic influence to sway people from supporting this noble and unstoppable cause.
Business executives instead of unnecessarily and continually dragging their feet must feel proud about this programme that makes indigenous Zimbabweans owners of the economy.

There is no reason for business executives, civil societies and the MDC formations to press panic buttons on ideas that make Zimbabwe create wealth for the benefit of its people.

It must be noted that since colonial days to date, the economy has mainly benefitted the West.
Raw materials and profits made out of local businesses were shipped to the West which made it the developed world it is today.

It must also be appreciated that the Lancaster House constitution was an impediment of wealth creation.
It is therefore important for everyone, including business executives, to support the economic empowerment ushered in by the Indigenisation and Economic Empowerment Act.

Every Zimbabwean must realise that corporate taxes which many businesses at one point or the other have evaded are not enough for economic development. Upfumi kuruzhinji rwevanhu ndozvatakarwira.

l Panganai Kahuni is a political socio economic commentator.