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...

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.

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Zimbabwe Indigenisation moves to the Manufacturing Sector

1 November 2011

PRESS STATEMENT BY THE MINISTER OF YOUTH DEVELOPMENT, INDIGENISATION AND EMPOWERMENT,HONOURABLE SA VIOUR KASUKUWERE (MP) ON THE PUBLICATION OF THE SECTOR SPECIFIC FRAMEWORK FOR INDIGENISATION IN THE MANUFACTURING SECTOR.

The indigenisation and economic empowerment programme seeks to create opportunities for increased participation by indigenous Zimbabweans in the mainstream economy.

The Indigenisation and Economic Empowerment Regulations of 2010 provide the general operational guidelines forimplementing the indigenisation and economic empowerment legislation in Zimbabwe. These regulations require that I gazette sector-specific notices laying out the minimum requirements for indigenisation in the various sectors of the economy.

In terms of the above, I would like to inform the public that, on 28 October 2011, I gazetted the sector specific notice for the manufacturing sector, namely General Notice 459 of 2011. This notice lays out the minimum requirements for indigenisation of businesses in the manufacturing sector.

General Notice 459 prescribes the following:

All businesses in the manufacturing sector with a net asset value of at least $ 100 000 shall comply with the indigenisation and economic empowerment legislation.

There shall be a lesser share of 26% indigenous shareholding.

Businesses have to comply with the 51% indigenous shareholding requirement over a period of 4 years from the date of publication of the General Notice.

The following are the annual indigenisation targets:

Year 1: 26% indigenous shareholding.
Year 2: 36% indigenous shareholding.
Year 3: 46% indigenous shareholding.
Year 4: 51% indigenous shareholding.

Eligible businesses are expected to submit their Indigenisation Implementation Plans within 45 days from the date of publication of General Notice 459 of 2011 in terms of section 5 (6) of the Indigenisation and Economic Empowerment (General) Regulations 2010, as amended.

General Notices on the remaining sectors will be published in due course.

Honorable Saviour Kasukuwere (M.P)

Zimbabwe Minister of Youth, Indigenisation and Empowerment

The Young People's Festival: Africa Unity Square- 5 October 2011

The Minister of Youth Development, Indigenisation and Empowerment, Honourable Saviour Kasukuwere was asked to give an address at the "Young people's Youth Festival" at the memorial Africa Unity Square in Harare. Below is the address the Minister gave to the youths present, it remains relevant to all Zimbabwean youths across the globe....

SALUTATIONS

The Hon Deputy Prime Minister, Thokozani Khupe

The Hon. Junior President , Anesu Rangwani

Resident Representative of UNFPA, Dr Tambashe

Representatives of the Ministry of Health and Child Welfare

Representatives of other Government ministries

Representatives of the various NGOs

Invited guests

Young women and men

I am pleased to be invited to be part of the Young People’s Festival Campaign that is being held today. The idea of holding festivals resonates very positively in bringing together young people and the various supporting actors to confirm our collective commitment to building better lives for youth.

Today’s theme ‘Ensuring that every child is wanted and every birth is safe’ is particularly significant as we acknowledge the world population of 7 billion recently attained.

The theme also raises a few important points that I wish to share with you today:

My First point relates to the excessively high numbers of children born to young people. Most births are unplanned. Many young parents are unprepared and unable to provide suitable care and support for them.

Although we receive reports of some success, this situation persists despite the efforts of very many programmes and organizations throughout Zimbabwe.

The greater efforts have been on imploring the personal responsibility that young people have on their own lives and the lives of their children.

The key point is about being responsible. Being able to be responsible is a central aspect of youth empowerment. Being personally responsible means being able to make the right choices and the right decisions about ones life and those that you care for. It also means being able to do take the right

actions to support your life and the lives of others.

Therefore, for youth, the ability to have children goes hand in hand with the ability to be responsible.

My ministry’s commitment to EMPOWERMENT means First, providing young people with opportunities to be able to acquire knowledge and skills to be responsible and to make the right choices ; and Secondly, to take action by supporting themselves economically.

My Ministry works with several organizations to implement programmes for supporting healthy lives among young people. The major aim has been to foster good sexual and reproductive health behaviours among young. The success of these programmes rests on the extent to with youth believe and make safe and healthy choices.

This brings me to my Second point today which relates to the extremely high numbers of youth who are unemployed. Many have not acquired qualifications or skills and are therefore unable to become employed or to become self employed.

The Government of Zimbabwe is committed to ensuring that every young person is able to support themselves and their families. We are emphasizing entrepreneurship as the major route to youth employment.

My Ministry’s programmes focus on providing skills for entrepreneurship as well as to support business development among youth. The entrepreneurship programmes are offered to all types of youth – those with tertiary qualifications as well as those without.

We work with several partner organizations to provide business training. One key agency is the Zimbabwe Youth Council who hold training workshops in partnership with various organizations. Many tertiary institutions also have included business training alongside their academic programmes.

For those not in tertiary institutions we have short courses to develop skills

competences and qualifications for particular products combined with business skills.

My Ministry also partners with local banks to provide loans and credit to help

young people start and grow businesses. We have a Youth Development Fund that has already helped several hundreds of youth become employers or be employed.

We encourage youth to pursue entrepreneurship as the main opportunity for earning incomes to support themselves.

Finally, I wish to acknowledge the work of several organizations and individuals working tirelessly to help Zimbabwe achieve better success with healthy lives. It is the hard effort, commitment and creativity of all of you that brings collective success.

We wish to acknowledge the financial and other support that is essential for programmes to work. At the same time we acknowledge that much of the work is thankless and voluntary. To those people we say thank you and wish to encourage you for further work. We continue to seek and invite more partners in these very noble endeavours.

To the organizers, I wish to congratulate you on the success of this Campaign.

I thank you.

Hon Saviour Kasukuwere 

Minister of Youth, Indigenisation and Empowerment

Youth vanguard of economy

The youth have been challenged to be the vanguard of Zimbabwe’s economy by taking part in business initiatives that contribute towards the country’s gross domestic product.

This was said by the Minister of Youth Development, Indigenisation and Empowerment, Cde Saviour Kasukuwere, while addressing thousands of youths that jam-packed Mucheke stadium in Masvingo to celebrate the International Youth Day.

"As the youth, you must actively partake in economic activities and contribute towards the country's GDP," said Cde Kasukuwere.

Cde Kasukuwere said as future leaders, the youth must take the indigenisation and economic empowerment initiative to productive levels for the economic prosperity of Zimbabwe.

Zimbabwe Youth Council chairman, Hamilton Pazvakavambwa said the youth are an important cog in the economic engine of this country and thus, they ought to be allocated at least a 25% share in every sector of the economy.

"We require that youths are allocated at least a quarter share in all sectors of the economy to ensure their maximum participation in economic initiatives," said Pazvakavambwa.

The International Youth Day is celebrated on the 12th of August every year. The day was designated by the United Nations in 1999 and is an opportunity for governments and stakeholders to draw attention to youth issues worldwide.

This year’s theme was “Dialogue and Mutual Understanding”.

The International Youth Day celebrations coincided with the publicity drive of the African Youth Charter.

Foreign Investment in Zimbabwe: Indigenisation Issues by HONOURABLE S. KASUKUWERE (MP)

Presentation by

HONOURABLE  S. KASUKUWERE (MP)

Minister of Youth Development, Indigenisation and Empowerment

at the Zimbabwe Capital Markets Symposium,

Sandton Convention Centre, Johannesburg,

4th November 2010

Presentation Title: Foreign Investment in Zimbabwe: Indigenisation Issues

Background

Colonial system: Dispossession, marginalisation & exclusion of indigenous Zimbabweans.

Since independence Government of Zimbabwe passed various legislation to rectify colonial injustices.

Notable achievements realised in land reform, social sectors & some professions like accounting, lawyers, management.

Little progress was achieved in terms of significant indigenous ownership in mining, manufacturing, construction, tourism & transport sectors .

Emergence of empowerment lobby groups to pressurize Government to speed-up the empowerment of indigenous Zimbabweans

Foreign Investment

Foreign investment presents our economy with opportunities for increased production, increased employment, development of infrastructure and new technologies.

Foreign Direct Investment is generally associated with improved standards of living for the residents of the recipient countries.

A development model anchored on foreign direct investment only and which does not include the meaningful involvement of local Zimbabweans, is socially, economically and politically unsustainable.

Our vision is characterised by partnerships between local Zimbabweans and foreign investors to guarantee participation by indigenous Zimbabweans, security of investment and establishment of up- and down-stream industries for the maximum benefit to the majority of the population.

Zimbabwe is not the only country with legislation for promoting participation by  the indigenous majority. Other countries like South Africa, Botswana, Zambia have similar laws.

Developed countries have achieved a significant participation in the economy by their nationals & foreign investment still plays a meaningful partnership role.

Fundamental principles

• Recognition of the universally accepted notion of equal opportunities for all as a matter of natural right & the need to eliminate ownership of wealth along racial lines.
• That indigenous Zimbabweans must own & benefit from the exploitation and utilization of their God given natural resources. 
• Commitment to underpin our political sovereignty through economic independence.
• The need for broad-based participation in the indigenisation process as opposed to the enrichment of a few individuals only.

Policy objectives

• To economically empower previously disadvantaged Zimbabweans.
• To create conditions that will enhance the economic status of disadvantaged Zimbabweans.
• To democratise ownership of productive assets of the country.
• To promote the development of a competitive domestic private sector that will spearhead economic growth and development.

Indigenisation & Economic Empowerment Legislative Framework

1. 1.       Indigenisation & Economic Empowerment Act (Chapter 14:33).
2. 2.       Indigenisation & Economic Empowerment (General) Regulations, 2010.
3. 3.       Indigenisation & Economic Empowerment (General) (Amendment) Regulations, 2010.

Indigenisation & Economic Empowerment Legislation

• Act sets 51% indigenous shareholding in all businesses with a net asset value of US$ 500 000 as the long term policy objective.
• All mergers, restructurings, unbundling of business, demergers, relinquishment of a controlling interest shall comply with the 51% indigenous ownership requirement.
• Promotes procurement of goods and services from indigenous businesses.
• Provides for the establishment of the National Indigenisation & Economic Empowerment Board to advise the Minister & manage the Fund.
• Provides for the establishment of the National Indigenisation & Economic Empowerment Fund to finance indigenisation and empowerment  transactions.
• Provides for financial instruments to assist local investors with funding from fiscus, levies & borrowings.
• The Minister shall approve all indigenisation arrangements.
• Businesses aggrieved by the Minister’s decision may appeal to the Administrative Court.
• The Indigenisation and Economic Empowerment (General) Regulations 2010 require existing businesses above the threshold of US $ 500 000 to declare their levels of indigenisation to the Minister and if not compliant, submit to the Minister their Provisional Indigenisation Implementation Plans.
• False declaration of information to the Minister regarding shareholding structures is an offence and liable to prosecution.
• New investments above the threshold of US $500 000, declare their levels of indigenisation to the Minister and if they are not compliant, they submit their Provisional Indigenisation Implementation Plans.
• Employee, Management & Community Share Ownership Schemes or Trusts are encouraged to be set-up as part of 51% indigenous shareholding to ensure broad based participation.

Reserved sectors for indigenous  Zimbabweans:

•  primary production of food & cash crops
•  retail & wholesale trade
•  barber shops, hairdressing & beauty saloons
•  employment agencies, estate agencies
•  valet services
•  grain milling, bakeries
•  tobacco grading, packaging & processing
•  advertising agencies
•  milk processing
•  provision of local arts & craft
•  marketing & distribution.

Indigenisation & Economic Empowerment Legislation (Cont’d)

• Establishment of Sector Committees for the purpose of assisting the Minister to come up with sector specific implementation frameworks, with respect to the appropriate minimum net asset value threshold above which a business in the sector or sub-sector concerned is required to comply with the regulations,
• … the lesser shares, maximum periods and weightings to be assigned to socially and economically desirable objectives & policies to overcome specified barriers and challenges to indigenisation in any sector of the economy.
• Sector Committees concluding their work & recommendations to be considered by Government before gazetting of the sector specific implementation frameworks.
• Government will review all licensing procedures to ensure compliance with I& EE legislation.
• Notable Indigenisation proposals approved to date: Schweppes (Pvt) Ltd, Old Mutual.

What indigenisation is not about

Immediate compliance: Phased compliance for both existing and new investments. New investors are free to come and invest on condition that they submit their plan, setting out how they intend to comply over 5 year period.

Investment prerequisite:. The 51% indigenous shareholding is not an investment pre-requisite.

Imposition of indigenous partners: The Government will not impose indigenous partners on foreign companies or businesses. Existing and/or new companies or businesses identify their own partners and negotiate the details of their joint venture agreements among themselves without any involvement of the Government.

Expropriation or nationalisation of businesses: The indigenisation process does not entail expropriation or nationalisation of companies or businesses. Indigenous Zimbabweans pay for any stake they take-up in an indigenisation transaction.

Conclusion

Our indigenisation & empowerment laws are not intended to stifle foreign investment, but rather guarantee security of investment through indigenous participation.

The indigenisation and economic empowerment laws are premised on the need to forge mutually beneficial partnerships between local and foreign investors.

Our indigenisation & empowerment laws have created certainty in Zimbabwe’s economy since investment requirements are now enshrined in the law and not subject to speculation.

Our Indigenisation & empowerment legislation ensures broad-based participation by indigenous  Zimbabweans to guarantee a stable investment environment.

Thank you!

Hon S Kasukuwere (M.P)

Minister of Youth, Indigenisation and Empowerment

ZIMBABWE`S POSITION PAPER ON YOUTH DEVELOPMENT

PAPER PRESENTED BY THE MINISTER OF YOUTH DEVELOPMENT, INDIGENISATION AND EMPOWERMENT, HON. SAVIOUR KASUKUWERE AT THE GOVERNMENT FORUM OF THE WORLD YOUTH CONFERENCE: LEON, MEXICO: 25 AUGUST 2010

Chairperson

Esteemed Guests

Ladies and gentlemen

On behalf of my country and President of the Republic of Zimbabwe, I would like to start by congratulating the Government and people of the Republic of Mexico for successfully hosting this 2010 World Youth Conference. As a country,   Zimbabwe,  we wish to associate ourselves with as well as  congratulate the people of  Mexico on their anniversary of 200 years of independence. My country is  now 30 years old and continues to transform the economy to become more inclusive.

Due to their energy, and their numbers, young people the world over contribute the most to the social, economic and political development of their countries and communities. They are central to the reform of national economies.  In much of Africa they were in the fore front in the fight for independence.

However, despite their energy and potential, young people remain economically marginalized. Most of them remain impoverished, are unemployed or under employed. They lack the opportunities to participate meaningfully in the economic development of their nations. They are the most vulnerable to HIV, AIDS and other health risks as well as other forms of abuse, especially the girl child. In my country Zimbabwe the illegal economic sanctions imposed by some Western countries have affected the successful implementation of some of the youth development programmes.

In Zimbabwe youth empowerment is considered to be key to youth development. There is need to   create equal opportunities for meaningful youth participation in the social, economic and political development of the nation. The future of any nation lies with its youth.  The youth should thus be placed at the centre of any development strategies and opportunities should be created for them to play a leading role in poverty reduction and economic development.

As a way to economically empower the indigenous people of Zimbabwe and reverse the unequal land ownership system, the Government embarked on a Land Reform and resettlement programme that resulted in more than 400 000 families being allocated land. Many young people benefited from this successful programme. The nation is beginning to see the positive results of the programme with increases in production such as in tobacco.

Furthermore, young people are set to benefit from the Indigenisation and Economic Empowerment Regulations that the Government of Zimbabwe has put in place.  In terms of the Regulations, indigenous people must own at least 51% shareholding of any company operating in Zimbabwe.  This indigenization programme thus has created opportunities for young people to take ownership and enter such sectors as mining, tourism, manufacturing, and agriculture. This programme will also go a long way in addressing the problems of youth unemployment and under employment.   Zimbabwe has vast mineral resources which must be used for the benefit of its young people. 

 Following the establishment of the Government of national Unity, young people of different political persuasions are  now working together under the umbrella of the National Youth Council. Through the Youth Council, youth are afforded the opportunity to participate through such forums as the Children`s Parliament and Junior Councils.

To enhance access to finance, the Government established the Youth Development Fund through which young people are able to access soft loans to support their projects. The Funds are accessed through participating banks.

Skills training is a critical component of the government`s youth development and employment creation programme. Through the vocational skills training centres and the community based Integrated Skills Outreach Programme (ISOP), many young people are accorded the opportunity to acquire technical skills to enable them to start their own projects and thus create employment for themselves and others. The Government supports these young entrepreneurs to acquire the basic start-up kits through the Youth Development Fund.

To facilitate a more coordinated approach to youth development efforts as well as to ensure that the current youth needs are addressed, the current National Youth Policy is being reviewed.  All stakeholders including young people themselves will be engaged in this process. In addition, the National Employment Policy has been developed.

Young people must be considered as assets and strategic partners in national development. They must be placed at the centre of socio-economic development strategies and they must be allowed to determine their own destiny for, as the young people themselves often say`, ``anything for them without them is against them``. Governments must thus create opportunities for young people to participate meaningfully in the social, political and economic development of their communities and nations by creating and putting in place the necessary enabling conditions, policies and legislative framework.

Developing nations must open up their massive resources for the benefit of their youths for it is the young people who are the engine of growth. Fellow ministers, we must design strategies that place the youth as the solution to the development problems countries are facing.

Development Partners and the Private sector must complement governments `efforts by channeling more resources towards supporting youth development programmes especially in the African continent.  They should not ´´think for us´´.  Undermining governments is counterproductive. They should not provide funding to youths to work against their governments.

Hon S Kasukuwere (M.P)

Minister of Youth, Indigenisation and Empowerment