Minister Kasukuwere Explains Empowerment

Economic Empowerment

It's been long before I communicated with you.I am continuing on our program to empower the people of Zimbabwe.We have had successful launches of Community Trusts and there is greater awareness among our people and especially the youth.
We are own liberators . Companies have to respect our laws,it's not about elections but it's about fighting poverty and improving the well being of our people.
The youths of our country have a duty to build the country.We are faced with serious challenges and at times serious let downs.However our commitment to succeed will help us overcome all the barriers.
Let's continue marching,we will prevail. I am following with keen interest developments that will change our youths and make them the builders of Zimbabwe. Let's shun all negative behavior and engage peacefully.

Empowerment rules: Zim to set up equity fund

BY NDAMU SANDU
ZIMBABWE is set to establish a Sovereign Wealth Fund (SWF) to hold shares in various entities acquired by the government under the empowerment legislation signifying its intentions to move ahead with the programme that has rattled foreign investors.




The move comes after major mining companies buckled under pressure and resolved to sell controlling shareholding to locals in line with the Indigenisation and Economic Empowerment Act.


Initially, mining houses under the Chamber of Mines umbrella had offered 26% to locals. According to information obtained last week, the country’s SWF, Zimbabwe Investment Corporation (ZIC) will be launched before the end of the year to house resources for the future generation.


The fund will be the baby of the Ministry of Youth Development, Indigenisation and Empowerment with oversight responsibility from the Ministry of Finance. ZIC will hold shares in various entities acquired by government as part of the empowerment legislation as well as revenue from an SWF super tax of 5% on mineral production.


It also seeks to raise over US$5 billion in assets over the next three to five years. An independent body would be established to oversee the management of the fund.
Before the fund is lau-nched, the promoters would visit renowned funds in Asia and the Middle East.


In Asia, the team would visit the Singapore Investment Corporation and China Investment Corporation. In the Middle East, the team would visit Abu Dhabi Investment Authority (ADIA) and Qatar Investment Authority.


ADIA is the world’s largest fund with assets of over US$620 billion. There are currently 51 funds with combined assets of over US$4 trillion. According to the Sovereign Wealth Fund Institute (SWFI) since 2005, at least 19 funds have been created.


SWFI studies the funds and their impact on global economics, politics, financial markets, trade and public policy. It said globally, the financial and utility sectors in direct investments were white hot for sovereign investors.


“In the first half of 2011, US$7, 09 billion was invested by SWFs in the financial sector. “This was followed by U$3,13 billion in utilities. Year-to-date from 2011, we have recorded US$3, 41 billion in energy sector direct transactions,” it said.


WHAT IS A SOVEREIGN WEALTH FUND?


An SWF is a state-owned investment fund composed of financial assets such as stocks, bonds, real estate or other financial instruments funded by foreign exchange assets.


SWFs may be created through commodity exports, either taxed or owned by the government or non commodities through transfers of assets from official foreign exchange reserves.


http://www.thestandard.co.zw/business/31543-empowerment-rules-zim-to-set-up-equity-fund.html

Independence not supported economically is meaningless

Political independence is meaningless without indeginisation of the economy, a Cabinet Minister has said.
Youth Development, Indeginisation and Empowerment Minister Saviour Kasukuwere made the remarks while addressing nearly 1 000 people — among them businessmen, chiefs and legislators — on Government’s indeginisation drive in Marondera on Wednesday.


“We appreciate that the land question has been addressed, but it is not enough without talking about economic empowerment for black people,” said Minister Kasukuwere.
“The whites had the objective of controlling our resources, including mineral wealth as expounded by the Rudd Concession, and they gave this control to their trusted lieutenants.”
This, the minister said, was designed to benefit a few individuals at the expense of the majority. He reiterated that democratisation of the economy was neither political nor racist but was simply meant to ensure the black majority controlled their resources.

“The legislative framework of indeginisation was debated at length in Parliament and legislators finally agreed that the President signs it into law.
“It was with consensus that we agreed to the inclusion of the majority of people in the day-to-day running of the economy, with foreign investment coming in after our empowerment,” said Minister Kasukuwere.

He cited the example of black granite, which is mined in Mutoko but is exported without the local community benefiting.

“What’s there to show we’re principals of our country when not even a single house in Mutoko has been built using granite?

“Our wealth is our natural right, hence all companies with a capital base of more than US$500 000 should have an indigenous ownership of 51 percent,” he said.
The minister pointed out that Marondera did not have many companies with the required capital base hence the aim was resuscitation of defunct entities like the Cold Storage Company.
Chairman of the National Indeginisation and Economic Empowerment Board, Mr David Chapfika, told delegates that they wanted accelerated rural development.

“We were allocated US$5 million from the budget this year, while we’ll borrow capital from markets, collect levies from companies and also contributions from individuals for implementing the empowerment programme,” said Mr Chapfika.

Scores of people were turned away as the venue proved too small for the large turn-out from across the whole of Mashonaland East Province.

Interview with Hon Minister Saviour Kasukuwere on Indigenisation & Empowerment

The Indigenisation and Economic Empowerment legislation which came into effect last week provides the rules and regulations that guide the economic empowerment of the communities and other special and disadvantaged groups such as youths, women, workers and war veterans. Among other things, the Indigenisation and Economic agenda seeks to have a 51 per cent indigenous shareholding in major and strategic companies and develop a broad-based domestic private sector which is critical to economic growth and development. To get clarity on aspects of this agenda, Anthony Jongwe (AJ) caught up with the custodian of the indigenisation and economic empowerment agenda in the inclusive government Minister Saviour Kasukuwere (SK) and the following is their discussion.

AJ: Good morning minister. The Indigenisation and Economic Empowerment Act is now operational. Could you please shed some light on how the processes (indigenisation and economic empowerment) will unravel going forward?

SK: Good morning Jongwe. As you have rightly pointed, the implementation of the legislation has started. Within the next 45 days, companies will be expected to complete the relevant forms. As a Ministry, we are putting in place adequate measures to ensure that these forms are readily available and that includes the option of downloading them from our website. The forms seek to elicit information pertaining to the current set-up obtaining in each relevant company. It is hoped that the information obtained will reflect the correct level of ownership. As a ministry, we intend to use the information to come up with comprehensive sector-by-sector plans on how best to enhance empowerment. The whole purpose of this initiative is to broaden the national cake by bringing more people into national economic participation and development.

AJ: But there are serious concerns about the timing of the whole process, minister.
SK: It is the same old argument used when we introduced the highly successful land reform programme

AJ: Another school of thought is arguing that this legislation is largely motivated by ZANU- PF’s need to have a strong bargaining weapon in the on-going sanctions issue since there was no unanimity on the need for the legislation in the inclusive government.

SK: It’s all nonsensical. Our approach to indigenisation is not a new phenomenon. We have always been clear on the need to empower the sons and daughters of Zimbabwe in the face of irrefutable historical imbalances created by colonialism. Almost three decades after the attainment of independence, the ownership of resources in most key sectors of the economy is still skewed in favour of foreigners, with indigenous Zimbabweans mainly employed as managers and workers. Recent assessment studies on the levels of indigenisation of the economy by Government reveal that critical sectors of the economy, notably manufacturing, mining, tourism, energy, financial, construction, transport and media production are still dominated by foreigners. This state of affairs is detrimental to the overall development of the economy and prosperity of indigenous Zimbabweans

AJ: Indigenisation and empowerment programmes are not new in Southern Africa. What is unique about Zimbabwe’s approach?

SK: You are correct Jongwe. Indeed, South Africa, Namibia and Botswana have all adopted and implemented indigenisation programmes. Our approach to indigenisation is based on the notion of broad-based participation by our people in indigenisation arrangements. As a resource-based economy, we need to use indigenisation to fight poverty and create more jobs. Our indigenisation and empowerment are anchored on the conviction that indigenous Zimbabweans must own and primarily benefit from the exploitation and utilization of their God given natural resources. This is a fundamental pre-requisite for sustainable economic growth, social and political stability and overall national development

AJ: How will these broad-based participation arrangements be funded?

SK: There are various structures critical to the successful implantation of the indigenisation and economic empowerment agenda. The National Indigenisation and Economic Empowerment Fund (arising from the transformation of the National Investment Trust) will provide loans for acquisition of shares, business start-up, rehabilitation and expansion. Another route will be listing on the Zimbabwe Stock Exchange. Listing on the bourse enables ordinary black Zimbabweans to acquire shareholding in listed companies.

AJ: How can employees participate in the indigenisation programme?
SK: Workers will be able to do so through Employee Share Ownership Programmes (ESOPS). These programmes shall enable employees of a company, through a Trust, to acquire, hold and manage a prescribed level of shares of the company concerned and receive dividends or incoming arising there from. Significantly, ESOPS will result in increased productivity, improved industrial relations and employee welfare, retirement security, and foster responsibility and commitment to the company by employees and reduce demand on social responsibility. In conclusion, let me say that the difference between rich and poor is opportunity. These broad-based participation arrangements give an opportunity to all Zimbabweans, including those in the Diaspora to create wealth for themselves, families and nation.

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Anthony is principal consultant at Global Workforce Solutions (Pvt) Ltd- a management and human resources consulting company. For feedback/enquiries, send e-mail to: consultgws@gmail.com or phone/sms on 073 3 306 193


http://africanworkforcesolutions.blogspot.com/2010/03/interview-with-hon-minister-saviour_16.html