Zimplats deal: Step towards economic independence

thousands of people.
This is the biggest empowerment deal so far, which has set the tone for the noble and yet immensely misunderstood initiatives by Government to empower its people. Under the deal, 10 percent of the lucrative platinum producer goes to local communities, 10 percent to employees and 31 percent to the National Indigenisation and Economic Empowerment Board, ensuring full compliance to the indigenisation laws.
The future of Zimbabwe’s economy hinges on mining and it is only logical that Zimbabweans actively participate in the lucrative sector.
It has not been an easy road to this day for both Government and Zimplats but we commend the latter for finally seeing sense in giving the majority stake to locals, who by right should benefit more from this country’s mineral resources.
The confrontation between the two over the past few months has, however, not been a waste of time but has brought complex issues of indigenisation to the fore as the momentum to empower locals gather pace. Lessons have been learnt in the process which will certainly inform future processes.
We commend Government for remaining resolute in this instance, to ensure that a win-win situation prevailed. There was no relenting on the part of the Minister of Youth Development, Indigenisation and Economic Empowerment Saviour Kasukuwere on the matter.
This is good if the majority is to have its fair share of the national cake. Implats, still the largest single shareholder in Zimplats, has demonstrated that there is more to be achieved through constructive engagement.
The company’s chief executive Mr David Brown rightly pointed out that the deal bodes well for Zimplats, the Zimbabwean people and the economy at large. Its potential effect on local communities, employees and the economy in general is phenomenal. Millions of dollars worth of investment have been transferred into the hands of locals who will benefit from dividends, profits and other investments accruing from the deal.
For hundreds of years Zimbabweans have watched as their resources benefit foreigners who leave behind ghost towns and environmental disaster once a respective mineral is mined out.
Today Zimbabwe is replete with such examples as Chakari Mine, Kamativi and Mhangura Copper Mines that left trails of disaster when their lifespan expired. The respective communities were left poorer. However, the good news is that this is now a thing of the past given the current wave that should see communities’ lifestyles improved significantly through such empowerment initiatives as the Zimplats deal. Zimbabwe is endowed with at least 49 different types of minerals, hosting the world’s largest or second largest reserves in respect to a number of minerals such as platinum, diamonds, chrome and uranium, among others.
Only through such effective ownership schemes will Zimbabweans benefit from their God-given resources. Minister Kasukuwere was spot-on when he said benefits from mineral extraction needed to be mutual between Zimbabweans and foreign investors.
We are sure Mr Brown will be the first to send word to his peers that the empowerment process is not hostile to investors but only seeks to create a win-win situation. Foreign firms have a lot to gain from an empowered employee and a satisfied community. This has a direct impact on productivity.
A sense of ownership produces a better employee and a responsible community, ingredients which add to the general profitability of any business venture. We sincerely hope that any outstanding technical issues will be sorted out amicably and in good time to foster development.
Zimplats is a major player in the economy whose well-being or otherwise directly impacts the economy. Mining is one of the country’s major pillars for growth and we hope that other firms in the sector will take a cue from Zimplats and come to an amicable conclusion of their indigenisation plans.
The rest of the economy should stand guided. Government has sent a strong message that it is sincere in its quest to empower the majority and will stop at nothing until results are achieved.
We urge Government to fine-tune any grey areas that could compromise benefits to Zimbabweans of the indigenisation process.
In South Africa, the Royal Bafokeng community in Rustenburg owns 13 percent of Implats. Benefits of this are evident in terms of infrastructure development and the vastly improved standard of living.
The community has managed to invest in the banking sector, insurance, health and other sectors from proceeds coming from its stake in Implats. This is real empowerment.
For local communities in this country, it is now only a matter of time before we witness a massive transformation.
We just need to guard against greediness, corruption and other vices that have a tendency to rear their ugly head when such noble projects as this one begin to gain ground.