Local Companies to be protected from foreign industries’ competition

The local companies of Zimbabwe will be protected from foreign companies’ competition following recent announcement by the Standards Association of Zimbabwe (SAZ) that it is in the process of drafting a policy that will ensure goods being imported into the country comply with internationally recognised standards.

The national standards body’s quality assurance director, Mr Sebastian Zuze, told New Day reporters that the increased influx of foreign manufactured goods was worrisome because many such products were not subjected to inspections to test their conformity to international standards.

“We want to create a system whereby both imported and exported goods are examined to check if they comply with international standards to protect our consumers from sub-standard goods imported from Asia. Although we know that we exist in a global market, we have to ensure that there is protection for our local producers from unfair competition. Because of that we need to check on quality of imported goods,” said Mr Zuze.

These local companies include Olivine, Tanganda tea, Hippo Valley estates, Dairri bord, Colcom Foods, Meikles Africa, Delta Corporation, Butter, Datlabs among others

At the moment, Zimbabwe has a huge trade deficit because the local manufacturing sector was still operating at uncompetitive levels resulting in the country becoming a net importer of basic commodities, among other consumables.

Let's defend our resources

The Zimbabwe’s Deputy Prime Minister, Arthur Mutambara said that Africa must learn to dictate its own terms when dealing with China and stop blaming Beijing, apartheid, or colonialism for its economic woes.

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“Why are we not making sure the engagement with China is on our terms, as Africans? Labour, skills, technology, value addition "

“The Chinese must come to Africa on African terms. The terms that will allow the Chinese to make money, but the terms that will also allow Africa to develop, win-win. China wins, Africa wins.”

“Africans must not blame China or any other power for that matter. We must take charge of our lives, we must take responsibility for our problems and solve them." Mutambara said this at a China-Africa conference

Mutambara's remarks comes amid revelations that Chinese are looting African resources. In Zimbabwe for example, Chinese have floated in Zimbabwe's mines like Marange diamond and other notable mines around the country. Researchers have found that Chinese are paying little revenue in the country's treasury. So I think Mutambara is 100% right because if we do not care for our own resources we will end up owning nothing.

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Women in Mining

A South African company called Ferme Afrique Holdings has recently signed a $100 million diamond mining joint venture project with Women in Mining and the Zimbabwe Mining Development Corporation. Women in Mining are affiliated to the Zimbabwe Artisanal and Small-Scale Mining Council (ZASMC), which was instrumental in securing investors into the diamond deal .

The deal can be been seen as a major achievement especially taking into consideration that Zimbabwe is targeting to archive gender equality at least by 2015.

It will see women getting empowered after so many years of repression. Also, besides, the project is expected to alleviate unemployment which is high in Zimbabwe since it will open job opportunities for women.

The project is in conformity with the Indigenisation and Economic Empowerment Act, which stipulates that all foreign-owned entities with an annual turnover exceeding $500 000 should cede 51 percent equity to the locals.

Femme Afrique Holdings is a women empowerment organisation and its core business is investing in resources, skills and expertise in infrastructure development project.

For more information:

Indigenisation and Economic Policy for Political mileage

"Let's keep our land, our sovereignty" Mugabe

On the15th of April 2013 I was discussing about the issue of Land Reform programme as well as Indigenisation and Empowerment policy. I touched on the issue of how ZANU-PF under the ministry of Indigenisation and Empowerment policy has looted the available natural resources of Zimbabwe. The issue at hand was the one where Kasukuwere, the minister of Indigenisation and Empowerment policy threatened the Tongaat Hullet Company that it will forfeit its license if it fails to comply with the indigenisation policy of Zimbabwe. I then promised to give you the full explanatory information about why indigenous people of Zimbabwe are not fully benefiting from this on-going process.

The programme is failing to benefit the people it supposed to benefit because of political and economic factors. Politically, the policy has been hijacked by political parties for example ZANU-PF as a way of gunning support from ordinary people. By so doing, the process tends to be discriminatory in nature. For example, those who do not belong to ZANU-PF are hardly benefiting from this programme.

Economically, the programme has been hampered by factors such as sanctions which were imposed by the EU following the disputed land reform programme in early 1990s.

All in all, corruption has taken center stage in the implementation of these programmes. Some people have taken large portions of land yet others do not have any. For example, a CNN reporter during the programme called ‘hard talk’ accused Mugabe of grabbing 16 000 hectares of land.

The big question is, how long will Zimbabwe continue in such jeopardy?

An analysis approach of what was said by the Minister of Idigenisation and Empowerment Programme, Saviour Kasukuwere.

Kasukuwere said if Tongaat failed to comply with the country’s indigenisation regulations by July this year, it would be barred from operating in Zimbabwe.

“Tongaat Hullet is a major cause for concern. They don’t respect the laws of the country and that is unfortunate. Come July, they will not be planting cane in Zimbabwe, maybe they will be in Durban. Those who don’t want to comply must pack and go" Kasukuwere said.

Why Kasukuwere is targeting July as a final date for chasing out the Tongaat company? If you take a close look, ZANU-PF is clamoring to hold election on July 29. So I think by so doing Kasukuwere is trying to use "the government policy" not ZANU-PF to try by all means to gain support from poor citizens. Kasukuwere and his gurus are abusing Zimbabwean land by making it theirs. They have personalised every pierce of land they come across. On the other hand, Kasukuwere is doing this to persuade Mugabe so that he may bestow him as Minister of Indigenisation given ZANU-PF wins elections this year.

“Zanu PF will win and deal with you. I will ask Mugabe to retain me as Indigenisation minister and I will deal with you,” he said.So he is 'butchering' the country for personal gain.

If I may ask you citizen of Zimbabwe, have you ever benefited from this policy? If not ask Why?

For more on this,check on the next blog.

Indigenisation policy intensifies

Tourism minister, Walter Mzembi ironically warned tourism operators that they should comply with the indigenisation and empowerment policy or risk losing their licences. This comes amid after he had received an 11-member Indian delegation that arrived in the country on Tuesday to explore investment opportunities.

“l am sounding a warning bell to our operators to comply or risk losing their licences,” said Mzembi.

Under the country’s indigenisation policy, foreign-owned companies are required to sell 51% shareholding to locals.

Since the onset of Indigenous policy, people have expressed mixed feelings about the authenticity of the programme. Some say it is a positive move yet others are condemning it due to reasons better known to them.

According to my own point of view, I think the policy is a positive development towards resuscitating Zimbabwean economy in the sense that production being generated will benefit the local indigenous people. Also it will create job opportunities for the ordinary people.

However, on the other hand, the move will scare away potential investors because it is vulnerable to abuse and corruption since there is no clear stipulated law which guarantees that foreign investors are safe.

The move also benefits mostly the Zimbabwean big gurus like ZANU-PF members. Ordinary people are hardly benefiting from this move because of corruption.

The main objective of the Indigenisation and Economic Empowerment Act is to ensure that at least 51% shares of every company are owned by indigenous Zimbabweans.

The country has so far indigenised the mining sector with the majority of the companies having complied. To date 50 share ownership trusts have been launched in a bid to empower local communities.

Do you agree with the move by Minister Mzembi of indigenising tourism investors?

International convention centre: How beneficiary?

The move that stakeholders should take a leading role in the building of an international convention centre at the international convention centre in Bulawayo to revive economic activity in the city and boost the economy, can be viewed as a positive direction towards success.

Before I go any further, I would like to explain convention as a sense of meeting or gathering of individuals who meet at an arranged place and time in order to discuss or engage in some common interest. Trade conventions typically focus on a particular industry or industry segment, and feature keynote speakers, vendor displays, and other information and activities of interest to the event organizers and attendees. So in this case, international convention involves stakeholders from different countries across the world.

However, some may ask why Bulawayo needs a conventional center? Yes, Mr Dirk Elzinga, an international expert in the meetings industry said an international convention centre is critical to promote economic growth.

“Its establishment at the Zimbabwe International Exhibition Centre will generate economic spin-off ($100 million to $150 million per year; job creation (2 000 to 4000 direct and indirect jobs will be created,” Elzinga said.

He also reiterated that the cumulative contribution to Zimbabwe GDP after five years can amount to $500 million.

“ZICC will also create hundreds of jobs during construction with a possibility of 2 500 additional direct and indirect jobs after a few years of operation. Seven years after opening, all cumulative foreign exchange expenses will normally have been earned back; cumulative tax contribution of ZICC after five to 10 years will have exceeded the initial investment,” he said.

If we take a close look, one can therefore debunk that an international convention center is very useful especial in Bulawayo where de-industrialisation has taken the center stage. Therefore, because of de-industrialisation issue, Zimbabwe experienced high rate of workers entrenchment in the city.