Black Economic Empowerment and Corporate Governance in Zimbabwe

2764 Words12 Pages
Introduction
Indigenous Zimbabwean as defined in the National indigenisation and Economic Empowerment Act refers to anyone who, before independence in April 1980, "was subjected to unfair discrimination [presumably in Zimbabwe] on the grounds of their race, and includes a descendant of such a person". Thus indigenous Zimbabwean means any person who before 18 April 1980, was disadvantaged by unfair discrimination on the grounds of his or her race , and any descendant of such person, and includes any company association, syndicate/ partnership of which indigenous Zimbabweans form the majority of the members or hold the controlling interest.
National indigenisation and Economic Empowerment Act, defined indigenisation as a deliberate
…show more content…
The indigenisation process therefore runs the risk of appearing to have been designed for the exclusive benefit of a certain class and in turn loosing the very credibility and broad based support that it requires to be a success.
The Indigenisation and Economic Empowerment Act is not merely a moral initiative designed to redress the wrongs of the past, it instead serves as a pragmatic growth strategy designed to realise the nation’s full economic potential. However, neither the pasts wrongs nor future's promise can be addressed without prioritising indigenous people's economic empowerment.
Officials are not acting in good faith regarding the implementation of the Indigenisation Act. They are looking the other way when foreigners continue to hog the retail business space and other secondary sectors. One only needs to look at how foreign nationals, particularly the Chinese have crowded out emergent black businesspeople from the retail trade to appreciate the concern. This is a sector that ought to remain exclusively indigenous. While Zimbabwe direly needs investment to create jobs enough to absorb a growing legion of jobless locals, there is absolutely no need to give the Chinese or any other foreign nationals the advantage to crowd out indigenous people from sectors that require nominal capital to start. Indigenous people have been crowded out of the lucrative diamond mining business by foreign companies.

Government should also encourage firms to meet indigenisation

More about Black Economic Empowerment and Corporate Governance in Zimbabwe

Open Document