Indigenisation: Govt grapples for balance

GOVERNMENT faces a tough decision in striking a balance between the indigenisation on the one hand and attracting the much-needed foreign investment on the other, indications from senior government officials show.

Taurai Mangudhla

At a Steward Bank-organised business breakfast meeting on Wednesday, Industry and Commerce minister Mike Bimha said there was need for government to repackage the indigenisation policy in a way that does not retard foreign investment inflow.

“From the Industry ministry we are saying we would want to solicit for investment, we would like to promote industrialisation and at the same time we have to engage other ministries, the ministry responsible for indigenisation, and say how best do we want this message to be?” he said.

Bimha said the Indigenisation Act is a law that is not only in Zimbabwe but the world over, though packaged differently.

“Our challenge is not whether it (indigenisation) is good or bad. The issue is how best do we package it, how best do we interact with potential investors and still give them confidence such that they can say ‘Yes we can come and invest in Zimbabwe and yes we are ready to indigenise?’,” Bimha said.

“It’s not just for me and the ministry responsible for indigenisation. We have already discussed this and we have very interesting ideas.”

Bimha said part of the recommendations on the economy would be contained in a government agenda for the next five years which was currently being worked on by various ministries.

Newly-appointed Mines minister Walter Chidhakwa told a Zimbabwe Mining and Infrastructure Indaba held in the capital this week the country faced a grave challenge to reconcile the recognition that Zimbabweans had a sovereign right over their minerals and should benefit from their exploitation with the need to attract foreign capital, technical and technological resources.

“The challenge that we must address, therefore, is to reconcile these two imperatives and come up with policies that cater for both the ordinary Zimbabwean and the investor,” Chidhakwa said.

One thought on “Indigenisation: Govt grapples for balance”

  1. Theo says:

    It is very simple what is the way forward to revive the Zimbabwe economy, we need to create business growth and employment. There are many local business people ( non indigenous) and people over seas who would invest in Zimbabwe tomorrow but is the current climate positive? would any black Zimbabwean go to invest in the UK and give controlling stake to somebody called ‘O’Neil’, the elections are over and well done to the clear winner of these, can now the educated and professional politicians with huge sense of business come up with a proper manageable, clear and productive plan to revive the economy. Another issue I heard that the teachers want 1000US salary, they deserve it everybody wants to have a salary to live on and to prosper but at what point will we be competitive placed on Salaries in Africa, who will come and invest in Zim when our neighbours pay so much less for their workforce than what we do. This is an approach not just for the government to solve, what about rents? or transport\? or raw materials?
    Lets all come together to revive this country and it’s economy if we don’t do that more businesses will close down , and than sit and ask for a bigger salary when there is no industry and business which are open to pay workers and Managers. Lets stop talking politics and get down to do business we all know what needs to be done
    concerned businessman

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