NIEEB stalls reform

The National Indigenisation and Economic Empowerment Board’s failure to establish a sovereign wealth fund has stalled the implementation of the indigenisation and empowerment policy.

Tongai Matutu
Tongai Matutu

Speaking at an Indigenisation Indaba held in Bulawayo, Youth development, indigenisation and empowerment Deputy Minister Tongai Matutu said the NIEEB had not discharged its mandate.

“If there is no access to funds most companies will comply on paper, but in terms of people taking what has been allocated to them, they will not be able t to afford those shares as there will no money,” said Matutu.

He added thatthe indigenisation drive was meant to benefit the poor, but without the resources to access the shares, it would be rendered useless.

“Even the banks are in trouble because there is no money circulating and deposits are low, which means there is nowhere to borrow money from. We want even the marginalized groups like women, the disabled and the youth to benefit,” he said.

Independent research by the Business Council of Zimbabwe led by DrJesimenChipika, revealed that a more realistic timeframe was needed to implement the policy.

Economist,Dr Eric Bloch, said there was a need for the government to work on the policy to ensure that it guaranteed foreign investment.

“In February last year two major foreign banks wanted to lend local banks funds amounting to $6.3 billion, but five days later withdrew. Another major mine lost equipment worth $6 million which was to be used for doubling production and adding about 700 jobs to the economy, up until today the equipment is still in Johannesburg.In an economy were 87 percent of people are living below the poverty datum line, we need FDIs and the government must ensure its policies promote investment,” said Dr Bloch.

Post published in: Business

Leave a Reply

Your email address will not be published. Required fields are marked *