|
BULAWAYO — Youth Development, Indigenisation and Empowerment Minister Savior Kasukuwere says the empowerment law that has rattled investors is only the beginning of legal interventions his ministry will undertake as it seeks to indigenise the economy.
Last month, Kasukuwere’s ministry attracted widespread criticism as he revived the Indigenisation and Economic Empowerment Act of 2008 which seeks to dilute the shareholding of foreign companies.
The law, which directs foreign companies to provide details of their indigenisation plans by March 1, was revived a year after the formation of a unity government.
Prime Minister Morgan Tsvangirai led the criticism of the regulations describing them as “null and void” because they were passed without consultation.
The Council of Ministers chaired by Tsvangirai directed Kasukuwere to consult stakeholders on the new law with a view to reviewing the regulations following an outcry from investors.
But Kasukuwere on Friday told the business community in Bulawayo “the debate around indigenisation is dead”.
“We are not about to re-open the debate. It is law now,” he said, in what appears to be a complete disregard of Tsvangirai’s directive.
“There is a lot of emotionalism flying around. People who have not read the regulations are being emotional about them. We are not about to destroy the economy.”
However, he said companies that failed to submit their empowerment proposals within 45 days from March 1 would be given more time to do so.
The regulations, which seek to force foreign-owned companies to cede 51% of their shareholding to locals, have unsettled local businesses.
Last week the Business Council of Zimbabwe (BCZ), an umbrella body for nine business organisations, wrote to Tsvangirai imploring government to reverse the regulations saying they exposed “lack of co-ordination and sensitivity to the needs of our fragile economy”.
BCZ brings together the Bankers’ Association of Zimbabwe, Chamber of Mines of Zimbabwe, Commercial Farmers’ Union, Confederation of Zimbabwe Industries, Employers’ Confederation of Zimbabwe, Zimbabwe Commercial Farmers’ Union, Zimbabwe Council for Tourism, Zimbabwe Farmers’ Union and the Zimbabwe National Chamber of Commerce.
But in remarks that might further alarm organised business, Kasukuwere said:
“While there is this outcry over the recently gazetted regulations, it is my ministry’s view that we have not reached a stage where we can safely say the indigenisation drive has gathered its full momentum.
“We have found that there are 13 other laws that have relations with indigenisation that have affected our efforts.
“In this regard, my ministry, through consultation, will embark on a process that is endeavoured to see the revision of these 13 laws or their total repeal.”
Stakeholders drawn from various sectors of the economy said they were “alarmed” by the negative signals the unity government was sending to investors through the regulations.
Some said they came too soon after the disastrous land reform programme where mostly Zanu PF officials invaded and seized the most productive farms, which they are under-utilising.
The land invasions have been cited as one of the major factors behind the spectacular collapse of Zimbabwe’s once vibrant agriculture sector.
BY NKULULEKO SIBANDA
 |
Show/Hide comments
Show/Hide comment form
very interesting indeed, why should they still be trying to build the economy 30 years after they alone have been in power. how many years does a normal government need to put out trials and errors before it comes out with a proper blue print?
also saviour has to tell the world 1 thing zanu pf has ever built except gukurahundi, the green bombersetc and say how these organisations are tied to the rebuilding of the economy. if they are trying to rebuild the economy which government led to its collapse in the ist place? saviour get your facts straight and stop waffling if you are to be taken seriously.