Monday, April 30, 2012

Empowerment of Workers towards building a sustainable economy for Zimbabwe

As we celebrate workers day tomorrow, let's remember that the empowerment of our workers is a key priority in the growth of our economy. Workers have toiled to make companies what they are today and deserve a better return than low wages and salaries. Zimbabwean workers are slowly being transformed from being just workers to sitting at the table and negotiating as shareholders. It should not be ignored that the participation of employees as shareholders increases the output and viability of any company evidently stimulated by a sense of ownership by the employees. Companies such as Schweppes have recorded significantly higher revenues since the Employees and Management took up the majority shareholding of the company in June 2010 as a way of complying with the Indigenisation and Economic Empowerment laws of Zimbabwe.

Employee and Manangement Share Ownership Trusts are one of the designated vehicles for broad-based participation in the implementation of indigenisation and economic empowerment programme. 95% of the companies with approved Indigenisation Implementation Plans have included Workers and Management and some, Pensioners, as part owners of their businesses.  Schweppes Limited, Meikles Limited, Zimplats, Mimosa Mining company, Old Mutual are some of the companies that have, to date, set aside equity for their employees and Management. 

The empowerment of workers is key in the development of any country, and so as we celebrate our workers on the 1st of May 2012, let's recognise the commitment of the employees to the growth of your businesses and the growth of the nation. 

The Ministry of Youth Development, Indigenisation and Empowerment together with the National Indigenisation and Economic Empowerment Board, (NIEEB), remain committed to the empowerment of the workers and continue to encourage companies to include their workers and as part shareholders in an effort to achieve broad based participation and build a sustainable economy.

Thursday, April 19, 2012

Zimbabwe at 32: Indigenisation and Economic Empowerment for Economic Transformation.


The Minister of Youth Development , Indigenisation and Empowerment was invited to be the Guest of Honour at the Annual Independence Youth Dinner hosted by the Zimbabwe Youth Council. Youths representing various Youth Organisations and representatives of political parties attended the dinner held at the HICC on the 17th of April 2012.
Zimbabwe celebrated its 32nd year of Independence from colonial rule on the 18th of April with this year's theme being "Indigenisation and Economic Empowerment for Economic Transformation".

The Minister thanked the previous speakers that had spoken on the need for youths to start making a difference, the same difference made by the youths of the 1970's- 80 that liberated Zimbabwe from colonial rule. He went on to say the Independence of Zimbabwe is not for any particular political party but for all Zimbabweans to embrace and celebrate the achievement of those that fought for the liberation of our country.

He went on to emphasize on the need for youths to come togather regardless of their differences and fight for the economic transformation of Zimbabwe by way of getting the corporate world to see that the transformation of Zimbabwe lies in the Youths of today, the same way the youths fought for the transformation of the political landscape of Zimbabwe.

Indigenisation and Economic Empowerment remains a key focus area of the Zimbabwean Government. The Government, through the Ministry of Youth Development, Indigenisation and Empowerment has already launched the Mhondoro- Ngezi, Chegutu Community Share Ownership Scheme(Zimplats Holdings), the Tongogara Community Share Ownership Scheme(Anglo America- Unki) and the Zvishavane Community Share Ownership Scheme (Mimosa Mining company). Employees have also, to date, benefitted from Employee Share ownership schemes with employees from Meikles Limited and Schweppes Limited already owning a stake in their companies.
Over the next 3 months, the Ministry expects to have launched a number of schemes through out the country...

Friday, April 6, 2012

Deputy Prime Minister Arthur Mutambara Supports Youth Development, Indigenisation and Empowerment


Deputy Prime Minister Arthur Mutambara has thrown his weight behind Youth Development, Indigenisation and Empowerment minister Saviour Kasukuwere’s indigenisation crusade, saying there was no reason why foreign banks should be regarded as sacred institutions.
Kasukuwere’s calls for the indigenisation of foreign banks have courted the ire of Finance minister Tendai Biti and Reserve Bank of Zimbabwe governor Gideon, Gono who have argued that the financial services sector was sensitive.

Speaking on Wednesday night during a debate organised by Sapes Trust in Harare, Mutambara said there was need to indigenise the banking sector in line with national interest.

“The financial sector must be indigenised. It must be aligned to the national interest,” he said.

Mutambara said it was “a travesty of justice” for banks such as Standard Chartered to bank money raised locally in England.

Foreign-owned banks have been accused of ignoring calls to support local farmers, arguing the latter had no collateral, so the banks could not gamble with their clients’ savings. Mutambara said since agriculture was a key pillar of the country’s economy, it was wrong to have a financial sector not supportive of agriculture.

“We need a new financial sector law as the current ones are inadequate. New instruments must be given to the financial sector,” he said.

“Banks must support agriculture because there is money to be made there. You can’t have banks in the country that don’t support agriculture. Whose interests are they serving?”

Biti told journalists last month that there was no need to indigenise the financial sector since it was already dominated by local banks. Standard Chartered, Barclays, Stanbic and Ecobank are the only foreign-owned banks in the country.
Foreign-owned firms operating in Zimbabwe are required in terms of the Indigenisation and Economic Empowerment Act to sell at least 51% stake to locals.

Kasukuwere has in the past said after the mining sector had been fully indigenised, he would turn his focus to the financial sector.