Cde Zhuwao
GOVERNMENT has launched an economic empowerment strategy which will, among other objectives, provide vision and a clear mission to the indigenisation process.
Among other things, the National Economic Empowerment Strategy (NEES), launched by the Minister of Youth, Indigenisation and Economic Empowerment Patrick Zhuwao on Thursday seeks to ensure judicious exploitation of Zimbabwe’s human capital and natural resources.
Some notable salient features of the NEES include giving life to the indigenisation process; dovetailing with Zim-Asset; localising the 10-Point-Plan — page 14; effecting a levy on foreign companies resisting indigenisation and in reserved sectors and self-financing mechanisms.
The strategy facilitates the creation of Localised Economic Empowerment Facility; the establishment of a Constituency Economic Empowerment Supervisory Advisory Council; introduces measures to ensure compliance and has self-evaluation mechanisms.
In the last decade, Government has made efforts to empower Zimbabweans through various initiatives.
Starting from the land reform exercise right up to the introduction and enactment of the Indigenisation and Empowerment Act and the establishment of community share ownership schemes, Government’s intention is to see and empowered citizenry.
The NEES provides a link between investment and the locals. But more importantly it dovetails with the country’s economic blueprint, the Zimbabwe Agenda for Sustainable Socio-Economic Transformation (Zim-Asset).
It shares the vision with Zim-Asset.
This will ensure continuity.
The strategy, while recognising such current realities such as under employment and constrained fiscal space, locates the onus of empowerment and economic growth on the individual and their community.
It also sets in motion the creation of the Empower Bank which will be a community based banking network with chapters at local community level.
Empower Bank is designed to make banking support systems accessible to the lowest grassroots level. The bank shall serve as an agent of larger and or other financial institutions that are not operating in the relative area.
The strategy has noble ideas.
However, it is one thing to present noble ideas and well crafted strategies and another to implement.
This is a document that requires buy in from all sectors of the economy.
An empowerment strategy should not be fostered on the people and the business community who are expected to comply.
All the economic actors should be in it together.
We are aware that before crafting the NEES Government conducted a number of stakeholder consultations aimed at soliciting views into the strategy.
We commend Government for openness, transparency and being all inclusive.
However, we note some grey areas which require immediate attention.
A case in point is where a Tanzania based milling grouped has been allowed to participate in agro-value addition sector which is reserved for locals.
The Bakhresa group has been allowed to snap up controlling stake in struggling agro-concern Blue Ribbon Foods.
Before the Bakhresa takeover, some sections of the food processing community had raised concern about allowing a foreign company to invest in a reserved sector.
Government ignored those concerns.
Now that the NEES proposes a levy on foreign companies operating in reserved sectors of the economy by January next year, how will Government balance this matter on the one hand allowing the Bakhresa group to invest in the reserved sector, while on the other hand imposing a levy?
