Govt fine-tunes empowerment policy

THE government has engaged a team of experts to fine-tune the indigenisation policy to make it broad-based amid concerns it was not benefiting the majority of the population.

The move comes at a time analysts and other stakeholders have rapped the policy as being elitist and benefiting a few connected individuals.

A team of consultants headed by economist Jesimen Chipika produced the draft framework that was presented at an indigenisation workshop last week.

According to a draft Zimbabwe Broad Based Economic Empowerment Policy (ZBBEEP), the framework would review the system in place to be inclusive and targeting vulnerable groups.

“The Ministry of Youth Development, Indigenisation and Empowerment (MYDIE), including the National Indigenisation and Economic Empowerment Board (NIEEB), are reviewing the national economic empowerment policy framework to guide Zimbabwe over the next 30 years, 2013-2042,” reads the document in part.

“However, it is important to note that the current implementation process has encountered several challenges.  In order to propel this important national agenda, the MYDIE has embarked on a process of reviewing the national economic empowerment policy framework to make it broad-based, more inclusive and better targeted at the marginalised and vulnerable groups.

“This will allow the utilisation of a wider range of strategies for economic empowerment, thus improving on the effectiveness of the programme.

“The Zimbabwe Broad Based Economic Empowerment Policy (ZBBEEP) process is recasting the economic empowerment agenda for a longer period (30 years) than initially envisaged in the current policy.”
ZBBEEP, according to the draft policy document, seeks to transform the economy from primary commodity production by 2017 to value addition in the period 2018 to 2027 and transforming it into an innovation and knowledge economy by 2042.

In the short term, that is 2013-2017, ZBBEEP would broaden and expand the economic pie.

From 2018 to 2027, the plan aims to attain substance and consolidation.

By 2042, the policy would have resulted in a highly dynamic and productive economy.

The policy would be financed by resources from the National Indigenisation and Economic Fund (NIEEF), sovereign wealth funds and sector specific funds and those targeting special interest groups.
The framework is anchored on imperatives such as expanding the economic pie, macro-economic stability and should be broad based.  It is also premised on inclusivity, efficient infrastructure and zero tolerance to corruption.

The plan aims to increase domestic investment to $15 billion by 2042 from around $7 million in 2013.

It also aims to sustain Foreign Direct Investment levels of above $1,5 billion in 2027 from $105 million in 2013 to support mainly the recovery and expansion of key economic enabler sectors such as energy, water, transport and information and communication technologies in line with the envisaged economic expansion as well as sustaining key export sectors.

According to the Indigenisation Act, the shares should be transferred to NIEEF, community trusts, employee trusts and a consortium of indigenous investors.

The main objective of the Indigenisation and Economic Empowerment Act is “to endeavour to secure that at least 51% of the shares of every public company and any other business shall be owned by indigenous Zimbabweans.” According to the regulations gazetted in 2010, all businesses with a net asset value equal to, or above $500 000 located in Zimbabwe should formulate plans that will lead to 51% of the shares in the firm being sold to “indigenous” Zimbabwean shareholders within five years from the date of operation of the regulations.

23 Responses to Govt fine-tunes empowerment policy

  1. Gutter Poet December 5, 2012 at 8:42 am #

    What is this?

    • Biti December 5, 2012 at 1:47 pm #

      Something you obviously dont understand. Thats what this is.

  2. Joe Tendai December 5, 2012 at 10:09 am #

    Bullsh*t.

    • Biti December 5, 2012 at 1:46 pm #

      Yea that is bullshit coming out of your brains

  3. LIUmbez December 5, 2012 at 10:32 am #

    It should be called self enrichment policy because that is all it has ever been doing.

  4. jacktheswede December 5, 2012 at 11:07 am #

    What about procurement, service provision?These companies should be compelled to procure 90% of their products and services from local companies….THAT IS REAL INDIGENISATION!!!!

    • Biti December 5, 2012 at 1:44 pm #

      Nekuti ndiwe ani wacho?

      • Biti December 5, 2012 at 1:45 pm #

        messgae meant for Tino

  5. Tino December 5, 2012 at 11:32 am #

    I have said this before – and I will saiy it again. Were you not supposed to consult these consultants before implementing this policy. I wrote at one point that Kasuku needs to see beyond his nose. You should have consulted all stakeholders long back. They would have helped you come up with a better policy framework, but no you just wanted to just rush thru the whole thing.

    • Biti December 5, 2012 at 1:44 pm #

      Nekuti ndiwe ani wacho?

  6. Thabani December 5, 2012 at 11:47 am #

    This is mockery to our intelligence ,why do we trust Kasukuwere with our growing econony, all the companies he invaded has amid closed ,look at Mazowe Citrus he invaded again ,we are not paying attention to Gono and Biti noisy condemning him they have a just cause ,is the same person who employed 5000 militia in Ministry of youth without the required public service qualifications.Its a shame that Zanu pf the party with the highest number of academics confide someone without formal education to take our fragile ecomomy to the deepest end .Tyson the name he got whilst in intelligence operations for successfully plotting the death of our politicians can not be allowed again for the demise our companies in the name of empowerment .nxa-a this is disgusting .

    • Biti December 5, 2012 at 1:43 pm #

      Grow up!

  7. Mogu Mbingu December 5, 2012 at 12:35 pm #

    So zanu pf has come back to basic economics. I would then not see this new policy becoming more and more similar to JUICE. Zanu pf was only adamant about nothing when they were being told the way they were going about with respect to indiginisation was all wromg, destructive and elitist. Thanx to JUICE, zanu pf has been forced to rethink and fine tune its elitist policy which in the form Kasukuwere was implementing would have caused more harm than good for the poor majority Zimbos. The chickens are coming home to roost. Zanu pf have been beaten to the game by mdc with respect to crafting a policy that should sustainably take us from this quagmire status in which we find us to a stable but growing broad-based economy. Madandara ezanu pf aifunga kuti kutora mashares kunga chinja the lives of all Zimbos, ndokudhakwazve uku. What kind of economic model is that and how does it work? I have never heard of any other country where every Dick and Tom has a business. We are yet to see the outcome of this dangerous Zimbabwean experiment

    • Biti December 5, 2012 at 1:43 pm #

      Crap!!

  8. Sabi December 5, 2012 at 12:50 pm #

    As long as this looting policy is in place and that is exactly what it is, there will be NO investment, no interest, no jobs, no security, no quality of life just no movement on anything! Who in his right mind will bring his money here to develop infrastructure and collect on his investment and all being well reinvest while being told to give away 51% of his investment to someone who has not even worked to earn his place nevermind the reward! Ridiculous! ZPF criminal thought processes want something for nothing as always and encourage this regressive behaviour in Zimbabwe where the rest of the world moves forward and leaves us so far behind we will be another Somalia all the signs are definately there! Oh what has Zimbabwe become under Zanu PF!

    • Biti December 5, 2012 at 1:43 pm #

      Nonsense!

  9. Biti December 5, 2012 at 1:43 pm #

    Idiot comments as usual. You dimwits need to get a life.

  10. Great Zimbabwe December 5, 2012 at 2:32 pm #

    The minister should start to disclose the beneficiaries of the empowerment deals concluded thus far. No one person shall be allowed to benefit from more than one empowerment transaction. So we advocate for one person one empowerment deal policy. Chinese companies should now be forced to comply with the empowerment laws, because the laws are very clear on the definition of indigenous people. The NIEEF, Sovereign Wealth Fund and other funds should be subjected to parliamentary oversight. Employees of these funds should demonstrate a track record of competence in investment, project management, law, risk management etc. The investment framework of these funds should be approved by cabinet. There shall be dual reporting of the funds, whereby they report administratively to MIYDIE, and also to the Ministry of Finance (MOF). We should not have the similar mistake we have with NASSA, where it appears no one really knows what is happening in that fund. The Auditor General should review the performance of the funds and confirm whether internal controls and investment mandates are being adhered to. Zimbabweans should be assured that despite the controversies, this framework can deliver accelerated development and will certainly relieve the unbearable pressure on the fiscus. The policy is irreversible and we can only review, fine-tune and make it more legitimate and transparent.

  11. ndega December 5, 2012 at 3:08 pm #

    @Biti. We now know who is a dimwit and and who needs a life. Lingering in these message boards hurling insults at every soul that disagrees with ZANU (by the way, their records speaks for itself. 32yrs and we are in the stone age, no electricity, no water, no roads,ngura everywhere). Stop frothing at your rabid mouth and see the big picture. Perhaps hug your kids and wife. Oh, wait you don’t have one. Explains why you spend so much time lingering in these forums. If you did I would be embarrassed to be their father.

  12. ndega December 5, 2012 at 3:11 pm #

    You cannot create wealth by taking it away from other people. Simple. It’s even more idiotic if some deranged govt minister decides that because of your skin colour we will take away your successful company and give it to our friends. If Kasukuwere was serious why isn’t he invading Air Zimbabwe, Ziscosteel, NRZ, etc? Wait, they are bankrupt because of ZANU’s policies. Now they want to reap where they did not sow. We call that thieving where I come from.

  13. jabulani December 5, 2012 at 6:47 pm #

    Kasukuwere should show us his businesses first before he can be allowed to formulate policy on indignization

  14. Sean December 6, 2012 at 5:28 am #

    Not that I am for this new policy, but all the countries have such policies. Affirmative action did not start in Zim, problm we are making too much noiz about it. Did you knw you cannot invest in Asian countries and have more than 50% stak, and UK has affirmative action too. Well Zanu Pafiwa ‘ZANUPF’ z now running around like a headless chickn trying to use economists.

  15. Sean December 6, 2012 at 5:34 am #

    @Biti you sound like someone with a drama degree trying to understand ecoz 101, do urself a favor and use your time to google how ecoz workz…

© 2016 NewsDay Zimbabwe. All Rights Reserved.

DMMA logo