Indigenisation board to enforce regulations Temerity Mpofu Harare

As Zimbabwe's indigenisation regulations are generating public debate and criticism in some sectors, the National Indigenisation and Economic Empowerment Board (NIEEB) is set to enforce indigenisation regulations.

NIEEB is set to engage Compliance Officers to be part of a team spearheading the indigenous and economic empowerment programmes through effective broad-based support of all sectors of the economy, according to a recent statement.

The officers will monitor the implementation of the indigenous plans to ensure compliance with the law,audit and evaluate company declarations of various information affecting their obligations in terms of the law,conduct research and consultations with stakeholders for the development and improvement of appropriate legal and regulatory framework for indigenisation and empowerment and to advise business on compliance issues.

The African Development Bank (AfDB) says uncertainty over the country's indigenisation policy has negatively impacted on foreign investor participation on the Zimbabwe Stock Exchange.

The banking group said the situation had resulted in the local bourse recording its worst performance for the year 2011 with the key industrial index retreating from 160, 53 in August to 155, 82 in September,while the mining index was down 152, 42 in September from 164, 52 in August.

Debate continues to rage about the indigenisation issue, with Zanu (PF) elements inside the coalition government calling for the seizure of a controlling 51% stake in established businesses, particularly mining, ostensibly to empower previously disadvantage blacks.

It is reported in some circles that this proposal is flawed for many reasons, but its main problem is that it does not actually help the cause it purports to. On the contrary, it actually negates it.

Forcibly taking companies, or nationalisation, does not change the character of the current status quo but only replaces it with a politically correct colour – black.

"In fact this whole effort is nothing more than a racist attempt by members of the cabal of the previous regime to force through their own acquisition of massive amounts of wealth. It is imperative to note that there is no dispute about the need to indigenise," says one analyst.

Post published in: Business

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