Mr. Chairman,

Invited guests,

Ladies and Gentlemen,

Comrades and Friends.

I am delighted to have been invited to take part at the ZANU PF Provincial District Secretaries for Indigenisation and Empowerment here in Westwood. My presentation is on; “Indigenisation Policy Objectives and Strategies”

Before I present on the topic above, let me give you the background of indigenisation and its relevance to Zimbabweans. At independence in 1980, Government inherited an economy that was heavily dominated by white multi-national conglomerates, with minimal and peripheral participation by the black indigenous majority who were mainly either lowly paid workers, or self employed or under-employed or unemployed. The challenge to Government since then has been to remove the barriers and limitations inhibiting the participation of black Zimbabweans in the mainstream economy. It should be recognized and emphasized at this moment that the land redistribution process provides the landmark historical development that stands out clearly as a shining example of and indeed the epitome of the indigenisation struggle and a permanent solution for sustainable economic growth with equity. Consequently, indigenisation remained the cornerstone of Government’s policies and strategies in order to alleviate the acute poverty prevalent among black Zimbabweans.

Twenty-five years after Independence the Zimbabwean economy is still shrouded with transition difficulties of providing an equitable operating environment for indigenous players to meaningfully participate in productive activities in all sectors of the economy.  In some sectors, the situation still remains skewed in favour of a few privileged entrepreneurs and foreign capital with access to resources and opportunities

Indigenisation would be made possible and indeed much more smooth in economic circumstances that are characterised by growth of the economy.  Such an environment averts the struggle for the common cake while new players get accommodated in an incremental way.  Therefore the whole action of deliberately indigenising our economy should be viewed in a dynamic sense.  It is for this reason that economic indigenisation requires the unreserved support of both the private and public sectors for it to succeed.  It increases the growth potential.

But what really is indigenisation? Indigenisation is the deliberate involvement of black Zimbabweans in the economic activities of the country, which hitherto they had no access to due to the socio-economic and political systems of the colonial settler regime, so as to ensure the equitable ownership of the nation’s productive assets. Indigenisation is therefore a corrective policy. There is nothing racial or punitive about it. It is the norm in all sovereign nations the world over.

The recently concluded land and agrarian reform programme remains the epitome of the indigenisation and empowerment struggle of the black people of Zimbabwe and a foundation for sustainable economic growth with equity. However, such thorough indigenisation and empowerment programmes must be replicated in other sectors of the economy, which are still mostly foreign dominated and controlled. If you look at economies of developed countries, the bulk of economic activities are in the hands of indigenous people of these countries. So there is nothing sinister in the policy of indigenisation and economic empowerment of our people.  As such, it need not scare away investors as we often hear from negative quarters of our economy, unfortunately some of them are indigenous business people who have made it through our indigenisation efforts since 1980.

Thus in this regard, Government approved and launched the 2004 Revised Policy Framework for the Indigenisation of the Economy in order that implementation of indigenisation and economic empowerment programmes can be accelerated in all sectors of the economy.

The overall policy objective of indigenisation of the economy and empowerment of Zimbabweans is to produce goods and services that are affordable to all people. For this objective to be realised, it is imperative that a significant share of equity and business in all sectors of the economy is in the hands of indigenous people. It is for this reason that Government, in the 2004 Revised Policy Framework for the Indigenisation of the Economy, has decided that indigenous people shall control at least 50% shareholding in all sectors of the economy.

The national indigenisation policy seeks to achieve the following;

1.    Democratisation of the ownership of productive assets of the economy so as to eliminate economic disparities arising from racial differences;

2.    Increasing ownership of productive assets by black Zimbabweans in the economy so as to create more wealth and reduce poverty amongst them;

3.    Creation of a conducive environment that will allow indigenous Zimbabweans to effectively participate in the economic development of their country and earn themselves self respect; and

4.    Developing a competitive indigenous private sector that spearheads economic growth and development.

Unfortunately, because our people have suffered much impoverishment under colonial rule, they are so hungry for wealth and have in most cases succumbed to the get-rich-quick syndrome. This is manifested by rapidly rising cost of goods and services in indigenous enterprises, even if the costs of production are far less than is charged to the consumer.  I believe this is a passing phase and soon we will witness realistic prices of goods and services in our economy.

The main component parts of the strategies for indigenisation of the economy of black Zimbabweans are as follows;

1.    Sector-by-sector analysis:  My Department is establishing the current levels of indigenisation in all sectors of the economy, identifying any policies hindering the process of further indigenising the economy and empowering Zimbabweans and recommending appropriate remedial action.

2.    Review of Legislation: There is need for a review of legislation that constrain the process of indigenisation and empowerment. Inhibitive legislation governing the entry of indigenous entrepreneurs into the different sectors of the economy has been documented. The objective is to ensure that the legislative framework in each sector provides an enabling environment for the successful implementation of the indigenisation and empowerment programmes. When making adjustment to existing legislation, due care will be exercised in order to ensure continued competitiveness, productivity and therefore viability of both the existing and new companies.

3.    National indigenisation and Empowerment Act: An Indigenisation and Empowerment Act will be enacted in order to create an enabling environment that would result in the increased participation of the indigenous people in the economy and empowerment of black Zimbabweans through affirmative action measures. In this regard, the principles of the proposed National Indigenisation and Empowerment Bill have been agreed upon by Cabinet. The Bill is at the legal drafting stage;

4.    Public Awareness: It is important to increase awareness of black Zimbabweans on their ability to spearhead the development of Zimbabwe and on the opportunities and mechanisms available to enable them to actively participate in the mainstream economy and have self belief, premised on the responsibilities bestowed upon them with the advent of independence in 1980.

5.    Entrepreneurship and Skills Development: Government will continue its efforts to strengthen and expand entrepreneurship and skills development in the education systems. Part of entrepreneurship skills is the knowledge of appropriate pricing of goods and services so that consumers are also empowered to buy and consume more of their nation’s products.

6.     Mobilisation of Financial Resources: Government shall through the proposed National Indigenisation and Empowerment Act establish the National Indigenisation and Empowerment Fund, which will provide finance for indigenous people for business start-ups, expansion, rehabilitation and transformation, share acquisitions, rights issue, employee share ownership schemes, working capital management buy-ins and buy-outs and loan guarantees.  This will be over and the funds available in other Ministries and funding agencies.

7.    Corporate Governance: Government will promote good corporate ethics by all indigenous and non-indigenous entrepreneurs through the establishment of the National Indigenisation and Empowerment Charter. This will cover the ethics relating to public relations and pricing of commodities.

8.     Institutional Strengthening: A broad-based National Indigenisation and Empowerment Council, which will advise the Minister on all facets of indigenisation and empowerment, will be constituted. The Council will comprise of stakeholders from all sectors of the economy.

Let me emphasise here that indigenisation and economic empowerment programmes are nation-building processes that require the unreserved support from all sectors of the society. Resources in the public sector, the private sector and the community at large, should be mobilized and channelled towards the achievement of the set policy objectives.  Let me reiterate that, Government’s overall objective is to have indigenous Zimbabweans play a major and leading role in our economy so that we can talk of a national economy with our heads very high above our shoulders. A national economy being one that withstands neo-colonialist and neo-imperialist shockwaves as its foundation will be here, with the people of Zimbabwe themselves being in charge of their own destiny. The entrepreneurs will be producing goods and services for foreign markets and domestic consumers at affordable prices.

Finally, let me emphasise at this point that the policies for indigenisation and economic empowerment of black Zimbabwean are not for a few indigenous people in the country, but for all so that the benefits are widely spread among all black Zimbabweans. The Zimbabwean indigenisation and economic empowerment programme is not simply a moral initiative to redress the wrongs of the past. It is a pragmatic growth strategy that aims to realise the country’s full economic potential through full utilization of all its human resources and its creativity.

I thank you