Indeginisation of banks in zimbabwe

Ordinary Zimbabweans know the origins of their handicaps and are measuring the costs a lot more carefully than are the politicians who are imposing them. What we need to do is to build on indigenisation with the singular focus and energy underpinned by utmost integrity, equity and fairness so that we can create a new, inclusive, economic order in Zimbabwe.

It has been said that the most powerful weapon of the oppressor is the mind of the oppressed, and this has been particularly true of the post-independence situation in most African countries. This is because they have very deliberately directed all these costs onto the shoulders of the general population, a population that is considered deserving of both punishment and contempt because the majority has transferred its loyalty to the opposition party.

Why are we not increasing lobbies and activism around such areas? But come as friends and not as exploiters. You see we are an educated lot, so let us demonstrate that intelligence but applying it. This does not argue against the claims that the indigenisation law will prove massively disappointing to those who hoped to get something out of it, or that the law is already harming the business environment.

To me this is a vital issue that can derail indigenisation.

Blacks were happier to be used as fronts and smokescreens by whites, rather than to rightfully claim what was theirs. Parts of the Indigenisation and Economic Empowerment Act are even in conflict with other parts of the same Act, and also with clauses in the Statutory Instruments that are supposed to give effect to the Act.

The first principle we must appreciate is that not every black African wants to own an enterprise and there is nothing wrong with that. That way, the bulk of profits are retained in the country, and we rise out of the liquidity crunch we are currently facing. But these party officials seem to be getting much more satisfaction from the powerful evidence that they have achieved their hidden motive: As the Economist magazine observed, the threats against the foreign mining companies seem reminiscent of a shakedown game: Chinese firms do not suffer such anxieties, however, as they were exempted from full compliance with the indigenisation regulations because they supported vital sectors of the economy.

Indigenisation and SMEs

Critics also say the policy is merely a top-down empowerment strategy that will only indigenise the elite and only saddle average citizens with the negative impact of its failure through declining productivity and job losses.

To shake off responsibility, the politicians are much more preoccupied with placing the blame elsewhere.

We cannot have a situation where you have to support Zanu PF in order to benefit. No one disputes that it is a good policy, therefore we need to participate if we are to make it happen the way we would like to see it.

Many also aid their foreign owners in carrying out activities such as transfer pricing, in exchange for personal perks and rewards.

Any model adopted by Zanu PF must pass this test.

What is true indigenisation? Vince Musewe

Third, the process of indigenising Zimbabwe must not destroy wealth or value. Because of colonial conditioning, formerly colonised people have an inherent disbelief in their abilities, an inferiority complex that leads them to believe that certain things are best done either by former colonisers or by foreigners.

Why do we sit and do nothing when the rights of our members are violated? The land reform program has seen over families benefiting; we want to see the 2,8 million Zimbabwean SMEs come out winners from this round.

Kasukuwere is on record as having said that with respect to paying for mining equity, the mineral reserves in the Zimbabwean soil were sufficient payment, which suggested that the government seeks to take control of the mining sector without paying a cent for it.

As business associations and chambers we need to engage with Government and our members to ensure that this program succeeds resoundingly.

Mugabe clarifies indigenisation

In fact, General Notice 9 of simply sought to direct companies on how best to achieve the provisions within the Act and Regulations. They all know that their promises cannot be kept and they have never even pretended that they planned to keep them.

This means that indigenised entities must be better off and must create more wealth and opportunity. Does it make commercial or economic sense?

In fact, the timing and manner of its execution led most to see it as being a program of expediency, rather than empowerment. These moves have decisively undermined any hope of business expansion, job creation, export revenue growth or capacity improvements that could have promoted growth, made the country more competitive or improved revenue flows to the fiscus.

This remains true of the latest policies imposed: We have different talents and inclinations and appetite for risk. Mines sit on capital.

It therefore stands to reason that in Zimbabwe, given our already existing polarised and pariah status, the program is likely to be that more difficult to implement.Harare - Executives with foreign-owned banks are expecting reforms to Zimbabwe’s indigenisation policy to come into effect during the third quarter.

Finance Minister Patrick Chinamasa told investors and fund managers, gathered for the Imara Investment Conference in Harare, on Thursday that President Robert Mugabe’s cabinet had decided to review the policy. With Zimbabwe’s incredible amount of buried wealth under its land which is so immense that the world will be breaking doors to get into Zimbabwe once it embarks on a totally unique and untraditional march of new trade and commerce between those wanting to do business in Zimbabwe.

For example, in Zimbabwe foreign banks were the first banks to offer ATM transactions and remote banking and that they have greatly sped up the process of loan applications.

Garber () notes the ability of foreign banks to offer new financial products such as over-the-counter derivatives, structured notes, and equity swaps. The worst constraints affecting Zimbabwe’s economic recovery continue to be self-inflicted policies that are still having profound effects on business confidence.

For Zimbabwe, the realisation that the economic status quo had to change came at the turn of the century, ushered in by the fast-track land reform programme.

The most commonly expressed sentiment around this program was that it was a good policy, but the implementation left a lot to be desired. “I am pleased to advise that all the affected foreign-owned financial institutions operating in Zimbabwe have submitted credible indeginisation plans before the deadline of the 31st March

Indeginisation of banks in zimbabwe
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