SW Radio Africa (London)

Zimbabwe: Govt Cracks Widen As PM Dismisses Indigenisation Plans

Photo: IRIN
Hope in Harare.

The already gaping cracks in Zimbabwe's unity government have been further widened this week, after the Prime Minister publicly dismissed the ZANU PF led indiginisation plans for banks and other key sectors.

The Indigenisation Ministry, led by ZANU PF's Saviour Kasukuwere, last Friday announced that foreign owned firms across different sectors in the country must submit to the controversial empowerment plans within the next year. This includes banks, tourism groups and private educational institutions like crèches, primary and secondary schools and institutions of higher learning.

But Prime Minister Morgan Tsvangirai on Tuesday dismissed this notice, saying in a statement that "there is no such government position because no such issue has been discussed and agreed upon by Cabinet."

"Government has not sanctioned the Minister's actions that are a threat to investment in the country. The Indigenisation and Economic Empowerment Act does not empower the Minister to act and to project an image of a voracious government keen to compulsorily grab almost all institutions and companies in the country," the statement from Tsvangirai's office said.

The statement continued: "We reiterate the position that the Prime Minister of Zimbabwe has executive powers and the Constitution of Zimbabwe bestows him with the authority to oversee and supervise 'policy formulation and implementation'. The government forum that deals with implementation of government policy is the Council of Ministers, which has not discussed or approved the purported government position captured in the public notice."

The statement warned that anyone who 'grabbed' the assets of the foreign owned groups listed in the Indigenisation Ministry's notice, "would be doing so unlawfully and without the mandate of the Inclusive Government."

The indigenisation laws require foreign owned firms in the country to hand over 51% of their shareholding to indigenous Zimbabweans, and so far the campaign has hit the mines industry the hardest. International mining houses like Impala Platinum have already submitted to the so-called empowerment campaign, signing over a 51% share handover deal.

The laws have strained relations in the fragile unity government, with the MDC-T warning that the campaign will damage Zimbabwe's investment future and only benefit those in ZANU PF.

Critics have agreed that the campaign has little to do with real empowerment and all to do with securing ZANU PF's hold on the country, especially with a crucial election expected in the coming months.

Economist Masimba Kuchera told SW Radio Africa on Tuesday that the indigenisation drive is an election "trump card" for ZANU PF.

"The country is in full electioneering mode and the best for some people in ZANU PF is to say they will deliver indigenisation. So this has serious political under tones," Kuchera explained.

He also said that there are other options, in terms of indigenisation policies, which would be more beneficial for ordinary Zimbabweans, saying that the current plans have little to do with real empowerment. He criticised the current indigenisation drive for assuming that people will have the money and know-how to become a majority owner of foreign owned companies, when for many Zimbabweans this is not the case.

"There needs to be real education and realistic empowerment plans...I agree that it should be a non partisan and depoliticised process for it to be successful," Kuchera said.

To contact this reporter email alex@swradioafrica.com or follow on Twitter @albell88

  • Comment (8)

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  • ras sideeq
    Jul 4 2012, 11:14

    I HOPE THAT NOT BECAUSE THE WEST IS BANKROLLING THE PRIME MINISTER HE IS NOT BIDDING TO DISENFRANCHISE THE BLACK PEOPLE FROM IDNIGINASTION. THIS IS A VIRTUOUS THING WHERE CHILDREN WILL BE ABLE TO ATTEND SCHOOLS ENMASEE, EDUCATION WOULD BE ACCESSIBLE TO ALL, AS THERE WOULD BE WITHOUT DOUBT ,AN ESTABLISHED MIDLE CLASS WITHIN THE COUNTRY.POVERTY WOULD BE ERADICATED ENMASSE AND THE FUTURE WOULD BE ALOT BRIGHTER WHEN THEY KNOW THEY ARE THE MASTERS OF THIER DESTINIES. THERE SHOULD BE NO PPROBLEMS WIH INDIGINESATION WHY? SHARE HOLDERS WILL NOW HAVE TO EITHER BE LESSENED FROM THE MINORITY SIDE OR THEY MUST ACCPT TH FACT THAT THEY CAN NOT JUST LIVE OFF AFRICAN WEALTH WITH OUT THE AFRICANS BENEFITING. HOW LONG SHOULD AFRICANS BE SLAVES, DOES SOMEPEOPLE RECKON? DO THEY BELIEVE WHITE PROPOGANDA THAT SAY WE WERE BORN TO BE SRVANTS? IS THAT THIER POLICY. OR ARE THEY JUST COMPLETELY BRAIN WASHED BRAIN DEAD TO KNOW THAT THIS THE BLACK MNS TIME!!! THE TIDER IS NOT ROLLING BACK IN FRVAOUR OF THOSE WHO WANT TO BE SEVANTS THOSE WHO POTRAY THEMSLVES LIKE LACKEYS AND SERVANTS WHO SHOULD BE HOLDING A TOWEL WITH A WAITER BRINGTING DRINKS AND FANNING HIS MASTER WHEN HE GETS HOT. THIS MAN MAY HAVEA POITN BU TO DISTRESS THE APPLE CART WHEN IT IS ROLLING STEADILY IS NOT A GOOD THING IT SHOWS WEAK NESS AND AN DESIRE TO BE SUBSERVIENT TO THOSE WHO ARE EXPLOITERS !! HOW EVER ANY ONE LOOKS ATIT THE WEST HAS BEEN EXPLOTING AFRICA FOR HUDREDS OF YEARS AND THY HAVE NT STOPPED. SO EITHER WE BUCK UP AND TAKE WITH A PRACTICAL SENSE WHICH INDIGINSATION SI THEY ARE NOT NATIONMLISNG THEY ARE BEING FAIR IN SAYING WELL WE WILL SHARE THE PROFITS AS THE OWNERE OF TEH MINES. WE ONT ELECT TO TO SHIFFON ANY MONEY WE WILL STAKE A MAJOURITY HOLD OVER ALL PROFITS WHICH THE PEPLE WILL BE THE INEHRRITORS. WHAT THE MILLIONS OF PEOPLE NEED TO DO TO BENIFIT IS TO HAVE THIER BANK ACCOUNTS WHRE THEY WILL RECEIVE A MONTHLY STIPEND OR HOW EVER THEY CHOOSE TO BE PAID. THIS VENTURE WILL PAY FOR ITSELF . I DO NOT SEE WHY THIS MAN SEEMS TO EB AGINST THE BENIFIT OF ZIMBAWEANS GAINING A FOOT HOLD IN INTERNATIONAL BANKING , WHERE THEY LIKE VERY OTHER WHIE CITIZEN WHOM CHJOOSES HAS SHARES IN BARCLAYS OR ANY BANK. THESE BANKS HAVE BENIFITED FROM THE LABOUR OF BLACK PEOPLE FROR CENTURIES. THE EXPLOITATION OF AFRICA HAS BEENTHE KEY TO ALL EUROPES SUCCESS MORE S THAN ANY OTHER CONTINENT . THEY BENIFTED FROM SLAVEREY WHICH WAS FREE WORK FOR FIVE HGUNDFRER YEARS WHAT HAVE THEY DONE TO SHOW SOEM REMORSE? NOTHING WE DONT EXPECT THEN TO!!! THIS IS NOT IN THIER CHARCTER SO WE KNOW THESE THINGS. WE DO KNOW THEY ARE ALWAYS BEING CLEVER THEY ARE SUING THIER BRAIN AGAINST US MOST FOF THE TIME EVEN WHEN THEY THINK THEY ARE NOT THEY MOST CERTAINLY ARE. IT SI TIME FOR AFRICANS TO LE3ARN EVERY SINGLE TRADE THERE IS TO KNOW AND WE MUST BE THE MASTERS OF THESE THINGS AND AT NO TIME SHOULD WE BE SUBJECT TO SUBSERVIENTS AS MR PRIME MINISTER WANTS TO BELLOW TO THE WORLD!!!! AFRICA IS OUR CONTINENT WE ARE ITS MASTERS !!!!!!! TIRED OF BEING SLAVES OF ENVY DECEIT HATE DISCRIMINATIONB BIGGOTRY INMJUSTICE DEATH WAR CRIMINAL ACTS. THE PRIME MINISTER NEEDS T KNOW ANY OTHER WAY FORWARD OTHER THAN INDIGINESATION IS SERVITUDE SLAVERY AND WEAKNESS

  • Nintalan
    Jul 4 2012, 20:38

    Raz - I tried to read your rambling rave but unfortunately you never got close to the point.

    Government policy is directed by Cabinet, chaired by Robert Mugabe, as we are reminded constantly by the Zanu-PF aligned media. A Minister can't just go off half cocked like Kasukuwere has done on an issue of national importance and affecting other Ministries without discussing it in Cabinet. In any functioning government he would be sacked for this sort of behaviour. Unfortunately this won't happen. Zimbabwe is stuck, at least in the short term, with a conniving old crook as President.

  • Mutetwa
    Jul 6 2012, 06:33

    ragtimer your comments are very derogative one cannot help but view your sentiments with disgust. We are now in the 21st Century where we are talking about human rights and equality for all. you appear to insinuate that Zimbabweans have no human rights, further more you are very biased if not racist in you adaptive tone, it appears that you are not aware that Zimbabwe has a multicultural society that in the first instance apartheid type rule By white people who committed atrocities that have never been brought to book. In the second instance it was British officials backed by an international forum that supervised Mugabe to power. lets not play the blame game here when there are human beings lives at stake, there are lessons to be learnt here and one of them is the British and other entities will support you when things can be described as correct in their books however if you so much as contemplate challenging their supremacy then you will end up where Zimbabwe is today or worst still like Iraq, Afghanistan, Libya or even Syria for that matter. Yes you may get away with what you are saying now but somewhere along the line you will face the consequences of your words.

  • ragtimer
    Jul 6 2012, 11:00

    "lets not play the blame game here when there are human beings lives at stake, there are lessons to be learnt here and one of them is the British and other entities will support you when things can be described as correct in their books however if you so much as contemplate challenging their supremacy then you will end up where Zimbabwe is today or worst still like Iraq, Afghanistan, Libya or even Syria for that matter. Yes you may get away with what you are saying now but somewhere along the line you will face the consequences of your words."

    And here we see how twisted the logic gets for those who reject whatever they don't want to hear. I'm a "racist" for saying Africans should be able to handle their own problems, and Mutetwa thinks freedom from the Rhodies involves performing whatever songs and dances they demand in the hope of winning their support, and possibly a shilling or two in the begging bowl. The reality could not be more different, but once again we see the human mind's infinite capacity for self-delusion on vibrant display when disconnected from the ugly truth of reality.

  • Mutetwa
    Jul 5 2012, 06:13

    This is very bold of the prime minister to make such a challenge, notwithstanding that his unity government is failing to produce a constitution, that would allow an election which would put an end to all these misquotes and misconceptions. Further more it would appear that there is a battle in political strategy, because on one hand MDC T seems to be targeting international interests and international supervision, whilst on the other hand ZANU PF which is pressed for time is pushing a very noble Zimbabwean national interest. However the ZANU PF agenda would seem to be in conflict with the Globalization agenda whereby the International co-operations who have the financial muscle want to invest in their interest and not the interests of Zimbabweans. The proof is in the composition of the sanctions which MDC T is the Champion, MDC T’S interest is to be governed internationally, and therefore it is not difficult to understand that MDC T will always oppose any idea that will give Zimbabweans autonomous powers.

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