Indigenisation Minister eyes takeover of Masvingo firms
By Tererai Karimakwenda
29 March 2012
Controversial Indigenisation Minister, Saviour Kasukuwere, is in the
headlines again. This time reports say he has set his sights on Masvingo
Province, where he plans to acquire 51% shares in the only lithium producer
in Zimbabwe Bikita Minerals, sugar growing giant Tongaat Hullet, Renco Mine
and Malilangwe Trust.
The development was confirmed on Tuesday by Munyaradzi Rubaya, chairman of
the Masvingo Industry and Commerce sub-committee, who said the companies
would be acquired under the “Community Share Ownership Trust”. Rubaya did
not know how the deals would be structured and it is not clear how this
“trust” would benefit the local communities.
The move is a continuation of ZANU PF’s “indigenous empowerment programme”,
which has been criticised as being nothing more than a massive looting
exercise for top officials in the Mugabe regime.
The director of Bikita Minerals, Dzikamai Mavhaire, is also the former
Governor of Masvingo and a member of the powerful, decision making ZANU PF
politburo.
Political and economic analyst, Bekithemba Mhlanga explained that foreign
investors like transparency and need confidence in the laws of the country
where they invest their money. In Zimbabwe’s case both are lacking. Mhlanga
said it is the way the empowerment policy is being implemented that
potential investors have problems with.
“Everyone understands there is a need for some local control but people are
not so sure how these deals are being structured and how the shares will be
paid for,” Mhlanga added. He said investors will wonder whether they are
equal players or working with a gun to their head.”
South Africa’s Impala Platinum was recently forced into a deal to turn over
majority shares in their Zimplats operations by Kasukuwere.
The company was criticised for giving in to “robbery”, instead of fighting
for their rights and the affair further damaged Zimbabwe’s reputation as a
potential investment prospect. A number of analysts said that ZANU PF’s
success with Zimplats has emboldened them to spread their net even further.
“Look at what happened with land reform despite the fact that everyone had
agreed it had to be done. The way it was done by ZANU PF tended to be
violent and sometimes unlawful and illegal,” Mhlanga explained, referring to
the chaotic invasion of commercial farms that destroyed Zimbabwe’s food
production and displaced hundreds of thousands of farm workers.
The coalition government recently intensified their global efforts to lure
foreign companies to Zimbabwe, organising investment conferences around the
world. But economic experts say a stable political environment and the rule
of law must be established first, if any progress is to be made.