Opinion / Columnist
Simba Makoni's position on Indigenisation
08 May 2012 at 05:50hrs | Views
As Mavambo Kusile Dawn (MKD) we embrace the principle and spirit of genuine empowerment of the people of Zimbabwe. In any language it is a very noble concept indeed. Very loosely we can compare indigenisation to aid whereby it provides quick fix solutions,but fails to enrich the individual in the long term. Our view is that indigenisation, just like aid, should begin with HONEST intent. Goodwill. Followed by due diligence of both parties involved. Thereafter one can usher in mentoring programmes, build broad skills base,jobs,knowledge and insights before gradually extending to the material exchange of ownership.The process and results are not instantaneous. The sequencing is important because the value that is created is what should eventually be converted into investment.For the last 30 years,government has only paid lip-service to those issues. But now suddenly they are fast tracking to beat the elections deadline!
The Independent newspaper last week reported Zanu-PF saying that indigenisation was "their last political card." Sure right they are because they know they have nothing else to offer. All this steam is about trying to win votes. The institution of indigenisation has been hi-jacked as a political campaign tool based on self-preservation. The prosperity of the Zimbabwean public is the least part of that equation.
Perhaps we are unduly sceptical. Lest we forget,let us glean some facts from our past. The National Railways, 100% government owned. Is broke. Air Zimbabwe, 100% owned is bust. PTC 100% owned -dying.GMB-plundered. Kingston Retailers-a ghost. Jena Mines-broke. Mhangura Copper Mines-broke. Lomagundi smelting company-broke.The Reserve Bank of Zimbabwe......do you remember that they once presided over a currency called the Zim Dollar? Then there was Kondozi. There was Zinwa. And Zesa. Then the ghostworkers. I am even too embarrassed to go on with the "who's who" of failure. Whatever Zanu-PF touched, "it broke!" What we want to know is , what do you call that type of business model? With such a disasterous track record, Zanu-PF thinks it can convince a beleaguered populace that the 51% they are vying for , will not fritter in the same direction as the 100% lost in the parastatals?
For essential reading, there is a wonderful book I have yet to get my hands on by Professors Daron Acemoglu and James Robinson of MIT and Harvard University titled "Why nations fail." They write about why some countries get rich and why others remain poor. And their one word answer is "POLITICS". They refer to a regime such as ours as an "extractive regime". Because they extract to survive, which explains the collapse of companies and ultimately the nation. The views of such governments and that of its people do not coincide because their agendas are different. And most interestingly,of the successful countries,none are underpinned by an indigenisation exercise!
In our local politics, there is a prevailing assumption that if Zimbabwe gets rich, then all else will fall into place. Whilst we have diamonds, 100% ours,but mined by other nations, we should not be surprised that we fail to tally monthly figures! In a nutshell, you can have all the indigenisation that you want, but WITHOUT correct,sustainable economic policies, there will be NO prosperity.
Through correct economic policies(not experiments), government should REGULARISE at this stage, rather than to indigenise. Government is not an entrepreneur. It has NO business in business. Its role is as the regulator, crafting legislation for posterity, not tailor-making roles for power pundits. Government must utilise a regulatory framework that is ALL encompassing, inclusive of ALL stakeholders, that delivers genuine success not just to some people, but to ALL the people in the country. And not just some of the time,but ALL of the time. The Zimbabwean brand of indigenisation "selectively" deals with the issues, whereas regulation "un-selectively" deals with all of the issues. As MKD we say NO! to elements of racism! tribalism! sexism!
It is obvious that Zanu-PF has usurped that regulatory role of government. Re-hashed it. And quietly replaced it with the adjective "indigenisation", pretending that it is their brainchild. Why is a government function being used as a political campaign tool by a political party? Regularising is indigenising, the only difference is that the term indigenous sounds politically correct. It incites bravado. Sparks sensationalism, with a thrust of fear reserved for the heart of the foreign investor. Economist John Robertson pointed out that the word has no meaning in the context of economics. Prime Minister Tsvangirayi recently referred to "self- aggrandisement clad in new and misleading nomenclature such as indigenisation." Dear audience, just a footnote: there is no such word in your Shakespearian, Webster or Oxford dictionaries. The word is pregnant with meaning, and the devil is in the detail of the pregnancy!
A further illustration of our folly is as follows. Last year Zimbabwe's FDI flows were a mere $100m, and yet our neighbours exceeded $1bn. Can we say that this is because there is something THEY are doing wrong, and that WE are doing right? With all the fanfare of land reform, tractors from China, free seeds, free implements we have instead succeeded to import maize from Malawi which incidentally DID NOT have land reform,nor indigenisation, and neither do they have mechanisation. They still till the land with a hoe. Surely, this incongruancy deserves to be the first chapter of every economics book?
You have heard of Hwange coal and gassification, right? 25% owned by Hwange and 75% by the Chinese, who disregard all our labour and environmental laws , neither do they bank their monies locally. They are rising in our economy as a "special, favoured" group, at the expense of us black people.The Chinese are now officially indigenous Zimbo's. That means that have voting rights , which sweeps some 50,000 extra votes in the direction of Zanu-PF. With regard to our culture, traditions, value systems and languages they are not regarded as one of our tribes. Indigenous is only about business and votes. Do we have in place a reciprocal diplomatic exchange where we black Zimbo's are regarded as indigenous Chinese should we arrive in China?Are we being re- colonised via the backdoor? Anjin is mining in Chiadzwa 24/7. Is this the spirit of Nehanda and Kaguvi that we so oft love to sing about?
Mavambo remains concerned when Ministers become fabulously wealthy at the expense of our poor nation. They speak with forked tongues. They preach indigenisation by day, and dine with the investor at night. Where is one's moral compass? We need to bring back the Leadership Code.
Finally, Ladies and Gentlemen. We all know that in mining , the value of the minerals is in the ground. The value of a manufacturing concern is in the patents, and trademarks, registered elsewhere,belonging to someone, elsewhere. Their formulae are intellectual property. Their export markets are contractual. The value of the banks is in the brand. The systems. The professionalism. The money on the balance sheets belongs to the banking public. The value of tourism is in the value chain. Step on one finger, and you have hurt the whole hand. The value of Kondozi was beyond the impressive greenery. It was in the strong value chain built over a long period of time, encompassing large and small downstream activities, to create a market value that attracted high profile Tesco and Sainsbury supermarkets. Zimbabwe is not the only investment destination in the world, hence those brands swiftly established new agricultural networks elsewhere, in less intimidating regions. We scared away money and opportunity. Value is not created by removing doors and window frames from farmhouses. Neither is it in the buildings and machinery. Nor is it in predatory tactics. Put simply, that beastly instinct is bad for business!
Sadly MDC has turned a blind eye to all of the above, and more. They are not articulate, and have failed to rise above protest politics. They behave like passengers on a bus. The GNU bus, going nowhere. My parting shot to them is; "it's never the wrong time, to do the right thing."
And to our dear, tired 30 year old friends, Zanu-PF. History will judge you harshly. Don't worry about TB Joshua. FJ Sachikonye, hereby tells you tonight, that this is your last year in government!
And to the audience. Competition is the essence of entrepreneurship. It is the stern stuff that maketh man. Don't vie to bask in the glory of someone else's sweat. Kana nhaka chayiyo, we all know it has it's problems. Don't be entrapped by the predators. If you want a business, start your own.
The Independent newspaper last week reported Zanu-PF saying that indigenisation was "their last political card." Sure right they are because they know they have nothing else to offer. All this steam is about trying to win votes. The institution of indigenisation has been hi-jacked as a political campaign tool based on self-preservation. The prosperity of the Zimbabwean public is the least part of that equation.
Perhaps we are unduly sceptical. Lest we forget,let us glean some facts from our past. The National Railways, 100% government owned. Is broke. Air Zimbabwe, 100% owned is bust. PTC 100% owned -dying.GMB-plundered. Kingston Retailers-a ghost. Jena Mines-broke. Mhangura Copper Mines-broke. Lomagundi smelting company-broke.The Reserve Bank of Zimbabwe......do you remember that they once presided over a currency called the Zim Dollar? Then there was Kondozi. There was Zinwa. And Zesa. Then the ghostworkers. I am even too embarrassed to go on with the "who's who" of failure. Whatever Zanu-PF touched, "it broke!" What we want to know is , what do you call that type of business model? With such a disasterous track record, Zanu-PF thinks it can convince a beleaguered populace that the 51% they are vying for , will not fritter in the same direction as the 100% lost in the parastatals?
For essential reading, there is a wonderful book I have yet to get my hands on by Professors Daron Acemoglu and James Robinson of MIT and Harvard University titled "Why nations fail." They write about why some countries get rich and why others remain poor. And their one word answer is "POLITICS". They refer to a regime such as ours as an "extractive regime". Because they extract to survive, which explains the collapse of companies and ultimately the nation. The views of such governments and that of its people do not coincide because their agendas are different. And most interestingly,of the successful countries,none are underpinned by an indigenisation exercise!
In our local politics, there is a prevailing assumption that if Zimbabwe gets rich, then all else will fall into place. Whilst we have diamonds, 100% ours,but mined by other nations, we should not be surprised that we fail to tally monthly figures! In a nutshell, you can have all the indigenisation that you want, but WITHOUT correct,sustainable economic policies, there will be NO prosperity.
Through correct economic policies(not experiments), government should REGULARISE at this stage, rather than to indigenise. Government is not an entrepreneur. It has NO business in business. Its role is as the regulator, crafting legislation for posterity, not tailor-making roles for power pundits. Government must utilise a regulatory framework that is ALL encompassing, inclusive of ALL stakeholders, that delivers genuine success not just to some people, but to ALL the people in the country. And not just some of the time,but ALL of the time. The Zimbabwean brand of indigenisation "selectively" deals with the issues, whereas regulation "un-selectively" deals with all of the issues. As MKD we say NO! to elements of racism! tribalism! sexism!
It is obvious that Zanu-PF has usurped that regulatory role of government. Re-hashed it. And quietly replaced it with the adjective "indigenisation", pretending that it is their brainchild. Why is a government function being used as a political campaign tool by a political party? Regularising is indigenising, the only difference is that the term indigenous sounds politically correct. It incites bravado. Sparks sensationalism, with a thrust of fear reserved for the heart of the foreign investor. Economist John Robertson pointed out that the word has no meaning in the context of economics. Prime Minister Tsvangirayi recently referred to "self- aggrandisement clad in new and misleading nomenclature such as indigenisation." Dear audience, just a footnote: there is no such word in your Shakespearian, Webster or Oxford dictionaries. The word is pregnant with meaning, and the devil is in the detail of the pregnancy!
A further illustration of our folly is as follows. Last year Zimbabwe's FDI flows were a mere $100m, and yet our neighbours exceeded $1bn. Can we say that this is because there is something THEY are doing wrong, and that WE are doing right? With all the fanfare of land reform, tractors from China, free seeds, free implements we have instead succeeded to import maize from Malawi which incidentally DID NOT have land reform,nor indigenisation, and neither do they have mechanisation. They still till the land with a hoe. Surely, this incongruancy deserves to be the first chapter of every economics book?
You have heard of Hwange coal and gassification, right? 25% owned by Hwange and 75% by the Chinese, who disregard all our labour and environmental laws , neither do they bank their monies locally. They are rising in our economy as a "special, favoured" group, at the expense of us black people.The Chinese are now officially indigenous Zimbo's. That means that have voting rights , which sweeps some 50,000 extra votes in the direction of Zanu-PF. With regard to our culture, traditions, value systems and languages they are not regarded as one of our tribes. Indigenous is only about business and votes. Do we have in place a reciprocal diplomatic exchange where we black Zimbo's are regarded as indigenous Chinese should we arrive in China?Are we being re- colonised via the backdoor? Anjin is mining in Chiadzwa 24/7. Is this the spirit of Nehanda and Kaguvi that we so oft love to sing about?
Mavambo remains concerned when Ministers become fabulously wealthy at the expense of our poor nation. They speak with forked tongues. They preach indigenisation by day, and dine with the investor at night. Where is one's moral compass? We need to bring back the Leadership Code.
Finally, Ladies and Gentlemen. We all know that in mining , the value of the minerals is in the ground. The value of a manufacturing concern is in the patents, and trademarks, registered elsewhere,belonging to someone, elsewhere. Their formulae are intellectual property. Their export markets are contractual. The value of the banks is in the brand. The systems. The professionalism. The money on the balance sheets belongs to the banking public. The value of tourism is in the value chain. Step on one finger, and you have hurt the whole hand. The value of Kondozi was beyond the impressive greenery. It was in the strong value chain built over a long period of time, encompassing large and small downstream activities, to create a market value that attracted high profile Tesco and Sainsbury supermarkets. Zimbabwe is not the only investment destination in the world, hence those brands swiftly established new agricultural networks elsewhere, in less intimidating regions. We scared away money and opportunity. Value is not created by removing doors and window frames from farmhouses. Neither is it in the buildings and machinery. Nor is it in predatory tactics. Put simply, that beastly instinct is bad for business!
Sadly MDC has turned a blind eye to all of the above, and more. They are not articulate, and have failed to rise above protest politics. They behave like passengers on a bus. The GNU bus, going nowhere. My parting shot to them is; "it's never the wrong time, to do the right thing."
And to our dear, tired 30 year old friends, Zanu-PF. History will judge you harshly. Don't worry about TB Joshua. FJ Sachikonye, hereby tells you tonight, that this is your last year in government!
And to the audience. Competition is the essence of entrepreneurship. It is the stern stuff that maketh man. Don't vie to bask in the glory of someone else's sweat. Kana nhaka chayiyo, we all know it has it's problems. Don't be entrapped by the predators. If you want a business, start your own.
Source - MKD Interim Secretary for Economic Affairs
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