Cancellation of Zimplats license is totally unacceptable

The cancellation or threat to annul Zimplats' operating licence by the Youth, Indigenisation and Empowerment Minister, Saviour Kasukuwere, is totally unacceptable. As Mavambo.Kusile.Dawn (MKD) we demand that the information pertaining to the proposals by the platinum mining company be made public so that the people of Zimbabwe would conclude for themselves. At the moment we have not heard any information from the said company regarding their position apart from what Minister Kasukuwere has said. It would not make sense to go public about the cancellation or threat to without telling the nation what was on the table and what the Government wanted and how it would have benefited the ordinary Zimbabwean. It is against this background that we demand the nation be furnished with full facts of this issue.

We also urge the minister to act responsibly as he implements the regulations as he may end up upsetting the economy which will end up biting the same black people that he wants to serve, many people are still smarting from "well meaning" public policies which have gone wrong. These include the price slash in 2007 among others. In as much as the Minister wants to bring the economy back to the marginalized blacks, he should take note that they are consequences that come with it that would hamper the mainstream economy for good.

Such effects would even spill into other sectors of the economy that hold the same shareholding structures. We feel it was procedural to revisit the Act first, consult with other stakeholders such as the Ministry of mines and Mining Development regarding the issue before taking a unilateral and irrational decision to cancel the license. In general, the move to cancel the license dampens the potential for the country to attract foreign direct investment particularly in the mining sector which, by its nature is capital intensive. As a party we fail to understand the wisdom of revoking a license of a company currently employing 4 000 workers, including contractors, and it is anticipated that it would employ 6 000 within the next two years and 10 000 in five years. Kasukuwere is forgetting that 11 years ago, farms were taken in a similar way and , today we have many people who do not have any idea about farming masquerading as farmers and hence the decline in agriculture which has adversely affected the economy at large. At this point in time, we suggest that we should take stock of what we have done so far and gauge our preparedness.

As a party we strongly propose that this indigenization law which is draconian should be scraped because it scares off much needed investment in our country. Furthermore, we also suggest that we should put in place systems that promote the establishment and growth of SMEs for local equity thirst, whilst at the same time promoting FDI for sustainable industrial growth.