Zimbabwe indigenization Program must aim at creating new wealth

Zimbabwe’s much publicised indigenization and economic empowerment program must aim at creating new wealth .The real solution is to grow the economy and in the process generate new wealth which in the process creates jobs and brings national prosperity.

Zimbabwe’s broad based black economic empowerment must not merely focus on correcting historical wrongs. It should be refined and become a pragmatic growth strategy that aims to realise the country's full economic potential while helping to bring the black majority into the economic mainstream which further creates a market for enterprises. The program must clearly identify individuals with potential who can be supported to build enterprises and businesses from scratch and create new wealth and jobs. The over focus on re-distributing current wealth only serves to bring disrepute to an otherwise very noble and necessary program.

There are several practical steps which need to be developed and followed to ensure the program becomes a resounding success which include skills development and access to Entrepreneurial infrastructure. The ownership, management, socioeconomic development and preferential procurement are critical areas of broad based economic empowerment program which need to be clarified and developed to ensure the program’s success without disrupting established businesses which are already employing thousand of people and contributing to the Treasury through corporate and income tax.

The rules of engagement of the Broad based Economic empowerment program must be well laid out in advance for all investors to understand. If done hap-hazardly the economy shrinks and more people go hungry because investors flee and the skills that we need also flee, we see that what we have inherited has turned to ash. A credible empowerment program must be aimed to ensure broader and meaningful participation in the economy by indigenous people to achieve sustainable development and national economic security.

In light of Globalization and dominance of Foreign Direct Investment and Sovereign Wealth Funds in distribution of capital it is imperative for the economic empowerment to be done within the confines of the law. Admittedly Zimbabwe has several attractive features such as mineral resources, educated labour force ,excellent weather etc but investors have multiple other potential investment destinations.

This means Zimbabwe still has to be competitive in attracting FDI and the economic empowerment program implementation needs to take into account international trends and internationally acceptable practices on dealing with empowerment matters. Zimbabwe and Zimbabweans should shun being associated with grabbing other peoples businesses or assets but should rather develop a reputation as being welcoming to investors who will help in creation of new wealth.The focus should be on creating wealth and not grabbing, seizing or looting.

It has been correctly noted that direct intervention in the distribution of assets and opportunities was needed to resolve the economic disparities created by historical colonial policies which had favoured white business owners and citizens at the expense of everyone else regardless of their education, skills or ambition . The World over BEE is intended to transform the economy to be representative of the demographics, specifically race demographics of the country in particular its racial make up must be reflected reasonably in the ownership of resources and access to opportunities.

There is need to avoid victimizing one section on the population even though it may have been a beneficiary of past ill-thought out and discriminatory policies of the past.

It has been observed and universally accepted that "Societies characterised by entrenched gender inequality or racially or ethnically defined wealth disparities are not likely to be socially and politically stable, particularly as economic growth can easily exacerbate these inequalities." Thus broad based economic empowerment initiative is a necessary and critical program which should be carried out in a transparent and accountable manner for the benefit of broad sections of society which were previously systematically excluded from the Economy.

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