Latest News Editor's Choice


News / National

'Implementation of the indigenisation policy heavily flawed,' says Mugabe

by Staff reporter
29 Oct 2014 at 06:05hrs | Views

PRESIDENT Robert Mugabe has admitted the implementation of his government's indigenisation policy was heavily flawed, adding that some indigenous businesspersons had capitalised on the legal gaps to act as fronts for foreign investors.

Officially opening the Second Session of the Eighth Parliament of Zimbabwe yesterday, Mugabe also promised to mend severed relations with the international community.

"Having taken the position that our people should not be reduced to mere appendages in the economic processes of their country, we made the Indigenisation and Economic Empowerment Act an integral part of our statutes. However, it is depressing that some of our people have turned themselves into mere fronts of foreign investors, thus defeating the fundamental objective of the Indigenisation and Economic Empowerment Programme," Mugabe said.

"Decisive action shall indeed be taken to address these negative developments and to strengthen the general enforcement of the relevant legislation."

The policy requires that at least 51% shareholding of all foreign-owned companies operating in Zimbabwe should be in the hands of locals.

Analysts say the policy scares away potential investors needed to help reboot the economy.

Mugabe also advised companies that pledged to fund the Community Share Ownership Trusts to honour their commitments.

Addressing a fully-packed House where some MPs witnessed the event while standing, Mugabe also announced that about 14 Bills would be crafted, while existing laws would be amended to ensure they were in tandem with the Constitution.

He said a commission of inquiry would be launched to establish the processes and methods used to convert pension and insurance policy values from the now-defunct Zimbabwe dollar to the United States dollar.

"The findings of the commission and the recommendations thereof should assist in restoring public confidence in the local pensions and insurance industry.

On education, Mugabe said the primary and secondary school curriculum would be reviewed to align the country's education system with national development needs, putting greater emphasis on learning of sciences, technology and mathematics.

He also announced establishment of the Manicaland State University of Applied Sciences, Gwanda State University, the Pan-African Minerals University of Science and Technology in Harare, as well as upgrading of the National Defence College into a National Defence University.

"On the diplomatic front, as always, we stand ready to establish mutually-beneficial partnerships with all members of the international community, on the basis of mutual respect and sovereign equality.

We continue to call for the reform of key organs of the United Nations, to accord all its members an equal voice, in keeping with basic tenets of international law and democracy.

We indeed stand opposed to the unilateralism of some nations, who act as if they hold the royal rod over other mortals," he said.

Among the 14 drafts that will be crafted are the New Income Tax Bill, Debt Management Bill, Joint Venture Bill, Tripartite Negotiating Forum Bill, Electronic Transactions Bill, Cybercrime Bill, Data Protection Bill, Public Health Bill, National Defence University Bill, Manicaland State University of Applied Sciences Bill, Gwanda State University Bill and amendments to the Insurance Act, Pension and Provident Funds Act and the Procurement Act to render the public procurement process more efficient.

Source - newsday