adminNgoni Dapira Business Correspondent
THE Minister of Youth, Indigenisation and Economic Empowerment, Cde Patrick Zhuwao has said his ministry would soon gazette a statutory instrument to give effect to the 50 percent local procurement clause as spelt out in the Indigenisation Act.
He said this last Saturday in Mutare during a meeting with Manicaland Zanu-PF youths and stakeholders.
The Indigenisation Act under chapter 3 (f) says all Government departments, statutory bodies and local authorities and all companies shall procure at least 50 percent of their goods and services required to be procured in terms of the Procurement Act [Chapter 22:15] from businesses in which a controlling interest is held by indigenous Zimbabweans.
Cde Zhuwao said this in response to remarks by Zanu-PF Manicaland secretary for administration, Cde Kenneth Saruchera who was speaking on behalf of the acting Zanu-PF chairman, Cde Samuel Undenge.
Cde Saruchera said it was disheartening to note local companies such as Quest Motors are on the verge of collapse while private, Government and quasi-government institutions are buying vehicles from abroad.
“Minister, we are glad about your hard-ball stance on indigenisation which needed to be well spelt out correctly as a national agenda endorsed by President Mugabe himself. However, in Manicaland we are reeling from high unemployment due to industry that is collapsing but can be easily boosted and supported by our parastatals and Government institutions.
“Quest Motors for instance, is crying but the Police (Zimbabwe Republic Police), Zesa (Zimbabwe Electricity Supply Authority), among several other parastatals are importing new cars instead of supporting Quest Motors to create employment locally for our youths,” said Cde Saruchera.
Cde Zhuwao said the focus should be on indigenous enterprise citing that Government has been blind to the requirement of a broad based empowerment programmes that cut across the entire value chain of industry and commerce.
He said the country cannot continue side-lining its local business persons.
Cde Zhuwao said in two weeks his ministry will be launching the district Economic Development Strategy to steer economic empowerment at district level through decentralised empowerment conferences countrywide.
The Youth Minister also continued lobbying for support on enacting a 10 percent Empowerment levy that will be imposed on all foreign-owned firms that have not complied with the Indigenisation law.
Cde Zhuwao said the money raised would mostly fund rural community trusts to invest in businesses.
“Companies that have not indigenised should pay an Empowerment Levy. I am on a drive to implore your respective legislators to lobby for the Empowerment Levy in Parliament. Some might say foreigners are over taxed but has anyone stopped to think of the plight of our traditional leaders in Chiadzwa who are left to deal with the destroyed land for peanuts after the foreigner leaves? What have you gained as Manicaland from all the mining exploits so far? This fund will allow us to fund local developmental initiatives in areas where the foreign companies operate,” said Cde Zhuwao.
Minister of State for Manicaland Affairs, Cde Mandi Chimene said ZimAsset would only work through a united front by all Zimbabweans. She said every Zimbabwean was a vehicle of the empowerment drive and had a role to play
Cde Chimene added that it was sad that instead of celebrating success stories of locally manufactured goods, the nation believed locally manufactured goods must play second fiddle to foreign made-products.
Online Reporter