Published by the government of Zimbabwe
10 March 2010
Harare — YOUTH Development, Indigenisation and Economic Empowerment Minister Saviour Kasukuwere has castigated some foreign financial institutions for failing to financially support local businesses, saying this is undermining the Government's efforts to empower the indigenous people.
Briefing journalists at a recent reception on empowerment law, Minister Kasukuwere said there is need for every sector of the economy, including the financial sector, to actively participate in the economic empowerment process.
He expressed dissatisfaction over some banks that were against financing black businesses and warned them that the indigenisation law was inclusive of the financial sector.
"These foreign banks should change their attitudes, either they work to support our people or there is no need for them to be in First Street," Minister Kasukuwere said.
He said the financial institutions with a huge lending capacity had over the years shown no interest in promoting local businesses and questioned their importance in the country's quest to turn around the economy.
Minister Kasukuwere said he could not understand why some Western countries to which these banks belonged were opposed to the indigenisation law yet they were the ones who were discouraging investment alleging the existence of an unpleasant political climate.
"Some Western countries to which these financial institutions belong have been discouraging investment in Zimbabwe and it is now clear that these financial institutions are against indigenisation," he said.
Minister Kasukuwere said it was high time that the country should redress all colonial injustices in agriculture, mining, educational and financial sectors through giving a larger stake to the indigenous people.
He said the banks should emulate local banks such as TN Financial Holdings and CBZ Bank who have been funding businesses in the small to medium enterprises and the mining sector.
"Some foreign have a very small lending ratio as compared to their deposit ratio and this shows that they are not interested in assisting local businesses.
"Some of them have even refused to lend money to locals and they need our banking licences after all, this is tantamount to economic sanctions," he said.
The minister's remarks come in then wake of concerns that locals do not have the capital to participate in the indigenisation programme and will need financial support to start businesses.
He said Government had sat down and revised the law and reiterated that there would be no turning back on this policy initiative.
"Every one in Cabinet has agreed on this Act and what is now left is to face the challenges associated with the process including financial challenges," he said.
He said banks should appreciate the fact that the indigenisation law was not exclusive to Zimbabwe as some countries such as Botswana and South Africa had even allocated a greater percentage for the locals than in Zimbabwe but they were operating smoothly in these countries.
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The foreign banks have woken up to your obvious scheme to steal any funds that you can.