Indigenisation in its present form is shameful legalized looting
By Clifford Chitupa Mashiri, Policy Analyst, London 06/01/11
Of all public policies adopted in post-independent Zimbabwe, indigenization
as presently formulated is the most harmful, partisan and counter-productive
of them all. It is very regrettable that selfish political expediency and
greed rather than sound economic principles are the driving force in the
implementation of the controversial piece of legislation.
Although, public policy is defined by Charles L. Cochran and Eloise F.
Malone as ‘political decisions for implementing programs to achieve societal
goals’ (Public Policy Perspectives and Choices, New York: McGraw-Hill,
1995), Zimbabwe’s indigenization policy is pursuing other objectives.
Half-baked policy
The ongoing wanton vindictive parceling out or the threatened take-over of
other people’s businesses, investments, and valuable assets by Zanu-pf
activists is not achieving societal but short-term partisan goals. The
half-baked policy is actually damaging the economy and will have serious
implications for the future of the country at a time when it is slowly
recovering from implosion.
For example, the tourism sector and the fishing industry in Kariba were said
to be in panic this week after Zanu-pf supporters and the Affirmative Action
Group (AAG) allegedly threatened to take over some foreign-owned hotels,
harbours and fisheries in the resort town (Newsday, 04/02/11). We have also
learnt that Germany has lodged an official complaint with the government
over attempts by some Zanu-pf officials in Masvingo to seize a conservancy
owned by one of its nationals (Financial Gazette, 04/02/11).
Throwing spanners in the works
With high levels of unemployment this is not the time to throw spanners into
the works but of putting heads together to solve problems facing the
country. Unfortunately indigenization has emerged to be a problem in itself
rather than a solution because it has proved to be shameful legalized
looting. While blacks were marginalized and will probably remain that way
for sometime to come, the current indigenization policy is an ill-conceived,
corrupt and highly politicized campaign that is deliberately targeted at
settling scores than redressing colonial imbalances.
An important economic indicator of Zimbabwe’s compromised industrial
performance is the reported ‘tremendous decline in cargo’ by the National
Railways of Zimbabwe (NRZ) from 18 million tonnes shipped at the height of
Zimbabwe’s economic boom in 1998 to 2 million tonnes last year (The
Financial Gazette, 04/02/11). The government-owned rail company has been
adversely affected by a fall in industrial output resulting in NRZ’s
headcount at its Bulawayo headquarters dropping to 2,000 in 2010 from 8,000.
It is also reported that the company has been a victim of vandalism.
Closed-door meeting
Even more upsetting are reports alleging that a closed door meeting which
was attended by Vice President John Nkomo is believed to have given a green
light for the complete takeover of sugar conglomerate Hippo Valley and
Triangle and parcel out the land to indigenous farmers who are Zanu-pf
supporters (The Zimbabwean, 05/02/11).
Given the growing number of failures of some of the indigenized companies,
it is time government took stock of the negative impact the policy is having
on foreign investment and the wider society. It does not make sense to
sacrifice the country’s valuable resources in order to win a vote here and
there.
At a time when Zimbabwe is sitting on a US$6.9 billion debt and government
is unable to attract sustainable lines of credit let alone direct foreign
investment, the mining sector is facing an uncertain future over the 51%
indigenisation slice. Zanu-pf activist, Saviour Kasukuwere has reportedly
declared: ‘Currently work is at an advanced stage to finalise consultations
on the mining sector with a view to publish the gazette for the sector not
later than the end of February 2011’(TalkZimbabwe, 04/02/11).
Capital Flight
There are concerns that the empowerment regulations could trigger
expropriation of properties which could result in massive capital flight
(The Independent, 03/02/11).
As said by Zanu-pf politburo member, Oppah Muchinguri, ‘Zanu-pf is now full
of crooks’ who are abusing their positions to amass wealth through
corruption and under-hand dealings (The Zimbabwean, 05/02/11). She
reportedly said that most of the Zanu-pf officials and ministers ‘are liars
who are misleading President Mugabe that all is well from the cell level
going upwards yet on the ground its is disastrous’.
Instead of creating an ideal investment climate like other countries are
doing, some of the partners in the coalition government look determined to
scare investors with their political rhetoric. Zimbabwe needs to emulate
best practices from developed countries rather than be obsessed with
frustrating investors for cheap votes.
Britain’s Silicon Valley
For example, in November last year, British Prime Minister set out plans to
create a hi-tech hub in east London to rival California’s Silicon Valley and
had already attracted commitments to invest from companies including
Facebook, Google, Cisco, Intel and British Telecom (DailyMail, 04/11/10).
Nothing stops Zimbabwe with its enviable sunshine and good infrastructure
from developing it’s own Silicon Valley in Ruwa or Norton resulting in
incredible development all round in terms of increased employment and
industrial output.
Entice British investors
Similarly, countries which Zimbabwean leaders like to visit on unconfirmed
medical treatment have managed to entice British investors in the form of
universities which have set up satellite campuses on their territories with
great success. Examples include China, Malaysia and the Middle East. British
Universities are said to be earning an estimated £2 billion a year by
awarding degrees to hundreds of thousands of students, most of whom never
set foot in Britain (TimesOnline, 24/09/09).
The campuses offer identical syllabuses to those in Britain and teaching is
in English. The University of Nottingham’s campus in Ningbo, China had 3,500
international and 57 British students on its roll, while Bolton, Middlesex
and Heriot-Watt all have satellites in the United Arab Emirates with brand
new campuses and high tech facilities. Given Zimbabweans’ desire for
learning and acquiring good qualifications, we should be seen to be enticing
for example the University of London or Manchester to open campuses wherever
they want in our country.
Key to success
The key to all these success stories is a stable political environment
guided by a responsible government and not a scorched earth policy.
Clifford Chitupa Mashiri, Political Analyst, London,
[email protected]