Commercial Farmers' Union of Zimbabwe

Commercial Farmers' Union of Zimbabwe

***The views expressed in the articles published on this website DO NOT necessarily express the views of the Commercial Farmers' Union.***

Comment – business gulps from poisoned chalice

Comment: Business gulps from poisoned chalice

http://www.theindependent.co.zw/

e
Thursday, 03 March 2011 19:36

BUSINESS executives this week set themselves up as President Mugabe’s 
surrogates when they stepped up to append their signatures on the 
anti-sanctions petition.

The business leaders led by Confederation of Zimbabwe Industries (CZI) 
president Joseph Kanyekanye perhaps meant well when they signed the petition 
because, as they argue, sanctions are stifling business activity.

But they will find it difficult to reconcile their conscience as wealth 
creators with President Mugabe’s speech at the anti-sanctions rally on 
Wednesday afternoon that was unambiguously partisan.

Mugabe in continuing the mantras from his birthday party last weekend, 
continued to wave his fist at industry threatening companies with 
expropriation.

Mugabe said expropriating companies was part of the strategy to fight 
sanctions imposed on him and his lieutenants by the West.

He wants to take over companies owned by businessmen from countries that 
imposed sanctions on him. This is now highly personal.

One company he has singled out, Nestle´, is a prime target because it is 
refusing to buy milk from his Gushungo Farm. How  petty can he  get!

His explanation for targeting Nestle´ is emblematic. It dispels some of the 
myth that his party has been trying to give air to. There is nothing 
national about this project of expropriation.

This is a narrow Zanu PF venture of dispossession which the party is 
attempting to link to the national programme of indigenisation.

What does fighting sanctions have to do with grabbing a farm from a company 
that is not buying presidential milk? This trade dispute is now an ugly 
national fight.

Kanyekanye as leader of business in Zimbabwe should therefore be careful 
about lending himself to a discredited party assignment which will not 
benefit industry at all in the long run. In fact it will generate enormous 
damage.

Kanyekanye is entitled to have a personal view on sanctions but as president 
of the CZI he has a key role to protect industry from excesses of the state 
and not appear to be fighting from the same corner as the gang of 
expropriators that have been unleashed on industry.

Frankly speaking, Kanyekanye should have a view on the threat to take over 
companies.

At President Mugabe’s rally on Wednesday we believe he saw posters 
advertising the names of companies being targeted for takeovers.

The big irony about this whole saga is that in 2009 Nestle´ were awarded the 
CZI exporter of the year award and last year they were the first runner up 
in the same category. This is a company that has brought value to the 
country and contributed to increased foreign currency receipts.

The CZI says during the days of hyper-inflation when farmers wanted to 
access stock-feed but did not have the immediate resources to buy stock 
feeds, Nestle´ stepped in and linked the farmers with the banks.

The farmers could access funding facilities from banks enabling them to 
continue running their farm operations and have working capital. Nestle´ 
would purchase farm produce and repay the banks on behalf of the farmers, 
with the remainder of the funds going to the farmers. This point has been 
conveniently forgotten. Where is the CZI president to remind the president 
of Nestle’s contribution to the economy?

We also want to know what he thinks about the president’s remarks on taking 
over companies.

Mugabe’s template is definitely not the mode of indigenisation which CZI 
believes in.The CZI believes there should be “consistency with 
constitutional provisions such as property rights, the rule of law and the 
avoidance of imposition of equity partners”.

Kanyekanye has been handed a poisoned chalice and unwisely gulped the 
contents. Those business leaders and even service chiefs who have associated 
themselves with this dubious campaign need to think carefully about 
diminished public esteem. They have signed up to yet another Zanu PF project 
which is likely to be as damaging as the rest and further the country’s 
isolation.

Facebook
Twitter
LinkedIn
WhatsApp

Govt amends Indigenisation Act

Govt amends Indigenisation Act | The Chronicle   Minister Patrick Chinamasa Oliver Kazunga, Senior Business ReporterGOVERNMENT has amended the Indigenisation and Economic Empowerment Act in line

Read More »

Govt, BAT in agric empowerment drive

Govt, BAT in agric empowerment drive February 9, 2017 Features, Opinion & Analysis Sydney Kawadza Senior Features WriterIn 1995, Laxer Matemayi completed her Ordinary Level education

Read More »

Joint Venture Act gazetted

Joint Venture Act gazetted June 1, 2016 Business Martin Kadzere : Senior Business Reporter THE Joint Venture Act, expected to promote major investment across economic sectors, came

Read More »

New Posts:

From the archives

Posts from our archive you may find interesting