So, how does the policy affect the man on the street and does it, in fact, empower previously disadvantaged black people?
The indigenisation policy compels foreign-owned firms with a minimum capital of $500,000,00 to cede 51 percent of their shareholding to locals.
Under the Act, an indigenous person is described as any person who, before the 18th of April 1980, was disadvantaged by his or her race.
The Act stipulates that people can benefit through Community Share Ownership Schemes and Employee Share Ownership Schemes.
A bad idea
The policy is not unique to Zimbabwe but serious reservations have been expressed over the manner in which the policy is being implemented, with some observers expressing skepticism that ordinary persons will benefit.
Different views from across the political and economic sectors have been expressed. Economic analyst, John Robertson, said the policy was a bad idea, especially at a time Zimbabwe is struggling to recover from the effects of a decade of economic collapse.
He said the manner in which the policy was being implemented worked against current efforts to revive the country’s economy.
“I believe the policy is badly chosen for a country which is in need of an inflow of capital. Right now most people are not willing to invest in the country because they do not want their capital to be taken away through indigenisation,” said Robertson.
Robertson said that Zanu (PF’s) justification of the policy was wrong, adding that it would cost the country rather than aiding economic growth.
“The policy scares away potential investors and if you do not have investors there is no job creation. It’s wrong for a country to believe that you can simply claim the assets of other people,” he said.
Political mileage
Another economic analyst, Innocent Makwiramiti, said: “If the policy had been done above board, there would be no problem but unfortunately it is being used for political mileage. I do not see ordinary people benefiting and the results will be the same as the Land Reform Programme.”
In April last year, the MDC-T National Council dismissed the indigenisation policy as an exercise of “asset stripping, looting, patronage, corruption and self-aggrandisement”.
A survey conducted by the Mass Public Opinion Institute entitled, “Zimbabweans prefer empowerment through jobs rather than business takeovers” showed that 78 percent of 2 500 interviewees were against the indigenisation policy.
The survey revealed that six out of 10 Zanu (PF) supporters were in favour of job creation rather than business takeovers.
Step in the right direction
Political analyst, Charity Manyeruke, is, however, of the view that the indigenisation policy is a step in the right direction as far as empowering Zimbabweans is concerned.
“This is a very noble policy which will bring real, economic empowerment to the people of Zimbabwe. The policy will address some economic imbalances dating back to the colonial era and it will ensure that resources are not siphoned out of the country. It will give a sense of ownership to Zimbabweans over their resources and promote sustainable development,” said Manyeruke.
Youth empowerment group, Upfumi Kuvadiki Chairperson, Alison Darikayi, said the indigenisation policy had succeeded in ensuring Zimbabweans take control of their resources.
“To a larger extent, there has been appreciable progress in ensuring Zimbabweans gain control of their resources,” said Darikayi.
Post published in: Business