PDP condemns government’s threat to close foreign companies

The People’s Democratic Party (PDP) strongly condemns the shocking and reckless announcement made over the weekend by Patrick Zhuwao, the youth, indigenisation and economic empowerment minister, that government will from 1 April close all foreign owned companies that fail to pay empowerment levies.

Jacob Mafume - National Spokesperson

Jacob Mafume – National Spokesperson

Records show that the majority of companies have failed to comply with the Indigenisation and Economic Empowerment Act as it is bad at law and at a time when companies are operating below capacity due to the harsh economic conditions.

Zhuwao’s statement is the height of crass insanity and vindicates the PDP’s position that they are no genuine reformers in Zanu PF but only looters and grabbers.

The indigenisation and empowerment model will only ensure that the already corruptly rich in Zanu PF, get richer and no serious business person will invest in this country while thousands more people will lose their jobs.

As the PDP, we reiterate our position that the indigenization and empowerment framework does not work in Zimbabwe at a time when over 91% of the working population is out of employment.

The Zanu PF’s poisonous indigenization law will also affect the few remaining big companies such as; Delta, Innscor and Zimplats that are operating below capacity due to high operational costs coupled with serious power cuts.

Therefore, to add additional taxes on these companies is unsustainable and they will only choose to shutdown than pay the government levies.

As the PDP, we urge Zhuwao to look at the reality and stop his political grandstanding.

Zimbabwe is in need of capital to get out of the challenges that Zanu PF has placed it in. Zimbabwe needs capital in the form of Domestic Savings, Oversees Development Assistance and Foreign Direct Investment (FDI).

In short, indigenisation policy is a destructive model as it is wrong to expect a company to part with 51% of its shares without equity being paid for. It is wrong to construct an indigenisation and empowerment model based on acquisition of already created wealth.

The correct empowerment model is to create equal opportunities and incentives for the majority in order to create wealth and employment.

As the People’s Democratic Party (PDP), we have always argued that the indigenisation law needs to be repealed and not implemented.

Zanu PF cannot be trusted to run this economy and it is the duty and obligation of every right thinking Zimbabwean to get rid of this monster.

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