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.

Four Years No Salary

It is quite sad to learn that some workers in Zimbabwe have gone for more than four years without getting their full salaries.

To make matters worse, the Zimbabwe Congress of Trade Unions secretary-general, Mr Japhet Moyo said some organisations used to put their employees under judicial management for fake reasons. Therefore,in a bid to incur these problems,workers from different economic sectors ended up resorting to company litigations which most employers across the nation lamented on.

When a company is faced with litigation according to Moyo, it means it will be forced to sell its assets in order to settle outstanding salaries and this may lead to more job losses and company closures.

However, this also have negative implications on the economy because some companies can get closed resulting to low production.

Today (04/04/2013)we heard that workers have reiterated that they will continue with company litigations until their employers realise who they are.

Effects of Centralisation

I would like to point out the negative effects of centralisation particularly in Zimbabwean context. Firstly, I will try to define centralisation as the concentration of authority at the top level of the organisation/city

This has negative effects and are given below.

The centralised city suffers:

Delayal in decision-making and communication due to the fact that all decisions are made at the top, Centralised power and authority might be abused, Centralised organisation faces the problem of lower motivation levels among workforce, The success of organisation depends on the competence of top executives which might be quite risky, Overpopulation, Poor service delivery, Overcrowding, Outbreak of diseases, Exhaustion of resources.

The Case Study is Harare

Do you think de-centralisation which is dispersal of authority throughout the organisation/city or devolution of power and resources, a solution to curb the issue of unequal distribution of resources in Zimbabwe?

Unemployment rate worsens

Retrenching of workers has once again hit workers of the Dairibord Holdings in Bulawayo and Mutare, hence pushing up unemployment rate which is already high. The company stopped production at its Bulawayo and Mutare plants as the group rationalises operations to increase profit margins, last week. Dairiboard Company is not the first company to close its operations in Bulawayo. Last year in November, Zimpharm Private Limited reportedly withheld salaries for 37 workers at its Bulawayo branch for the past two months to force them to accept voluntary exit packages. Latter on the Company relocated to Harare. Closing of Dairiboard Holdings comes at a time when Bulawayo has recorded over 90 company closures since the 2008 hyper-inflationary period. Companies are closing day by day in Bulawayo and leaving workers destitute. Where is the future of this city?

The Gvt milks its own people.

The move by the government of Zimbabwe to increase fuel price during the referendum period has left many Zimbabwean citizens in jeopardy situation. The cost of living has been on a steady rise since last month due to that movement. We have seen how the price of basic commodities like cooking oil and mealie-meal has increased by 20% and 42% respectively. A report by Chronicle on the 21st of March 2013, reveals that the latest statistics from the Consumer Council of Zimbabwe (CCZ) show that the cost of living for a family of six increased to $570,75 in February from $567,90 in January 2013. The food basket increased by $2,48 to $157,91 from $155,43 in January. All this affects poor Zimbabweans who earn next to nothing. To make matters worse, others do not work at all, they depend on farming of which this point in time there is nothing in their fields due to shortage of rainfall (especial the parts of Matabeleland and Manicaland). The majority of the workforce, like civil servants, earn below the poverty datum line meaning that many people do not have disposable income. The diesel increased from $1,32 to $1,40 per litre and petrol from $1,47 to $1,55 per litre. The question is: Will the government be able to put the price of the fuel back to normal. What plans do the government have on the issue? Does it realise that people are suffering due to its actions?

Byo turned a ghost city

Last week we heard a report that the President Robert Mugabe’s family dairy company, the Gushungo Holding has stepped up efforts to claim market share in the highly competitive sector after it embarked on an aggressive marketing drive. We just heard that they were carrying a massive recruitment exercise for sales, marketing and distribution. They are also recruiting 300 vendors as a bid to boost the company’s market presence. What is good about this exercise is the fact that it will create employment in the areas where they operate, instead of importing general labour. This will reduce the unemployment rate which has reached negative level of about 98%. For example, the company currently has 500 employees yet producing about 300 000 litres of raw milk and 70 000 litres of yoghurt monthly. It will be operational in areas such as Mazoe, and Harare. The company was based in Bulawayo and evacuated at the beginning of this year due to the reasons known to them. A number of workers in Bulawayo lost their jobs. What will be Bulawayo if companies such as the Dairiboard Zimbabwe Limited de-industrialises? To make matters worse, more than 20 companies moved from the city to industrialise Harare at the expense of other cities. Therefore, what is the motive behind de-industrialisation?

High unemployment rate in Zimbabwe-what can be done?

Zimbabwe has the highest unemployment rate of about 98%. This, according to other economists is as a result of poor economic strategies. They say economic policies like land reform programme scared away potential investors, hence increasing unemployment rate. However, others blame economic embargo by other Western countries. The European Union unanimously agreed to put Zimbabwe under what they call ‘targeted sanctions’. This happened between the years 1990-2000 when Zimbabwe, under the leadership of ZANU-PF, has carried out the land reform programme or policy which saw white settlers losing plots they have grabbed in Zimbabwe before 1980. They accused Zimbabwe of abusing human rights, hence sanctions. But is it the case? What can we do as a country? Can we just sit and watch our economic situation dilapidating day by day? Certainly not. The Ministry of Youth development, Indigenisation and Empowerment tried to empower Zimbabwean youth by granting loans to certain individuals. But this is not enough. We need more. Zimbabwe can copy what Spain did to alleviate unemployment problems in her country. She pledged €3,5 billion over four years to ease mass unemployment among the country’s youth, as the government tries to stem a relentless tide of layoffs and lengthening jobless queues. She also took measures, such as lower social security payments for young self-employed workers and up-front payment of unemployment benefits for entrepreneurs. Spain’s unemployment rate has risen to 26% — the highest level since the 1970s and one of the highest in the European Union — and more than half of 18-25 year-olds are out of work (Newsday-14 March 2013). So I suggest Zimbabwe should something to solve this problem. What do you think should be done?

Increase in fuel uncalled for!

The government of Zimbabwe has increased fuel price by 20% (diesel) and 25% (petrol) as a way of getting money for referendum conduction. This increase of fuel is uncalled for. It shows how irresponsible and uncaring our government is. It is actual a recipe for disaster on the side of ordinary people. How on earth will the government do such a thing? The members of the public will definitely suffer because the price of other basic commodities such as mealie-meal, cooking oil, and soap among others increased because of the increase in fuel prices. Commuter omnibuses would be forced to hike their charges too. So how will poor Zimbabweans make an end to meet? The government was supposed to use money they get from tax payers. Mining industry is producing millions of dollars daily. So where is the going? There is diamond, gold, platinum and the list goes on. The government collect thousands of dollars from the Toll gate or ZINARA on daily basis. So where is that money going to because our roads are at a bad state? There is no improvement at all! The Tourism industry also adds something to the Treasury. So where is the money government? I think, the government was supposed to anticipate this and budget for it before. We are sick and tired of this malfunctioning government. Do not suck us because we are dry like dry bones.

Zimbabwe Indigenous Miners’ Association plans to educate and empower illegal miners The Zimbabwe Indigenous Miners’ Association (Zima) plans to embark on an outreach campaign to educate and empower illegal miners on how to formalise their operations (Chronicle 10/03/13). ZIMA business co-ordinator Mr Nqobizitha Dube told Chronicle news reporter that they will educate illegal miners operating in remote areas on how they can acquire prospector’s licences as well as facilitate in creating links with investors. How then Zimbabwe will benefit out of this campaign? 1. Since illegal miners pose threats to the environment, the campaign will lessen that. Education will make illegal miners to realise that their activities pose threats to environment. 2. Zimbabwe’s economy will improve in the sense that minerals which were being smuggled into neighbouring countries like South Africa would be channelled to Zimbabwe’s mineral basket.

Standard Chartered Bank committed to Byo industry revival

Standard Chartered Bank committed to Byo industry revival

Standard Chartered Bank committed to Byo industry revival

Indiginisation for what and for who?

The Ministry of Youth Development and Economic Empowerment in Zimbabwe has engaged private owned companies including banks to cede at least 51% of their shares to the government/community. as far as everyone is concerned in Zimbabwe this is a strong economic drive. however, the problem now is the fact that the government has allowed politicians to abuse this powerful economic drive. Politicians are using it as a strategy to gain political mileage by luring youths. The for "who and for what" of this programme is always oblique and obscure. there is no equality. The locals are just given a quarter if not nothing. Those with financial muscle and excellent political credentials for certain parties are benefiting. Hail to the programme but down with inequality. Do the right think Mr Kasukuwere, we support you.

How Zimbabwe can settle its debt with IMF?

Zimbabwe owes IMF (International Monitory Fund) a lump of $10, 7 billion. Newsday (04/03/2013) reported that IMF representatives are in Harare for this debt. As Zimbabwean citizen, I deem it necessary to point out some facts about what could be done if the government of Zimbabwe is serious about settling this debt. I came out with few points so that you can add others you deem necessary also.

1.       Zimbabwe is rich in natural resources such as diamonds and gold. So money can come from these natural resources.

2.       Ministries such as the Ministry of Home Affairs can submit due revenue to the Treasury.

3.       Zimbabwean government should reserve the money that has been put aside by the Ministry of Home Affairs for recruiting 10 000 police officers and use it for debt settlement (recently Newsday reported that Zimbabwe Republic Police force is set to recruit 10 000 more officers to maintain law and order ahead of next month’s referendum and subsequent election. The number will mount from 40 000 to 50 000).

4.       Money can also come from UNWTO through tourism.

5.       Foreigners like Chinese who have invested in mining industry should pay their dues in full. (Last year Newsday reported that Chinese are giving little or no revenue to the Treasury)

What should Zimbabwe do?

Knight Frank to refurbish Bulawayo Centre

On the 26th of February 2013 Newsday reported that Knight Frank, an international property management firm that oversees Bulawayo Centre shopping mall, plans to embark on the second phase of the mall at an estimated cost of $10 million. Is it a positive step to be taken and how that will benefit you as a Bulawayo resident?

Can Bulawayo industry resurect again?

Can Bulawayo industry resurrect again taking into consideration that centralization  is still taking place? Centralisation is the process by which the activities of an organisation/nation, particularly those regarding planning and decision-making, become concentrated within a particular location and/or group. Recently, Dairy Board closed down and many workers retrenched