The empowerment law is already being implemented in the mining sector, where South Africa’s Impala Platinum was forced to hand over majority shareholding in its Zimplats unit to a state fund, employees and local communities.
Speaking at the Atlantic Centre, a think-tank and public policy group, Biti said while he agreed on the need for Zimbabweans to participate in the broad economy, the initiative being spearheaded by President Robert Mugabe’s Zanu PF party would only benefit the black elite.
“The transfer is for value, which is good, but in a situation where the majority are poor, you are just transferring shares from a few rich white people to a few rich black people,” said Biti.
“It wasn’t well-thought. Due process not being followed, we need to go back to the drawing board and say how can we empower our people. The best way to empower our people at this present moment in time is to expand our economy to create as many sectors as possible.”
The exercise is widely seen as a ploy by Zanu PF to win votes in elections that must be held by next year with political reforms and a new constitution in place. The government, which plans to have completed the empowerment programme in the mining sector by the end of this month, has given no indication how much it plans to pay for any stakes in Zimplats.
Zimbabwe has the world’s second largest platinum deposits.
— Reuters
