Banking sector complies with indigenisation and empowerment regulations

Published: 10 June 2013

THE banking sector is complying with the country's indigenisation and empowerment regulations, despite spirited efforts from some quarters to discredit the programme.

Youth Development, Indigenisation and Empowerment Minister Saviour Kasukuwere told officers attending the Joint and Staff Course Number 26 and Junior Staff Course Number59 at Staff College in Harare yesterday that he was receiving positive response from the banking sector.

Minister Kasukuwere said Barclays Bank, one of the biggest financial institutions operating in Zimbabwe, had already submitted its indigenisation proposals.

He said he was scheduled to meet Barclays Bank officials on Tuesday but the meeting was postponed to next week because it was Cabinet day.

"Our board (National Indigenisation and Economic Empowerment Board) is reviewing their (Barclays Bank) proposal," he said.

"From the preliminary (submission) that we have received so far, I think it is 'do-able'. We see some kind of opportunities that will assist, especially in terms of funding of some of the key sectors of the economy.

"This is exactly the attitude that we want from our financial institutions. I must say that I am not too unhappy with what they have brought forward."

Minister Kasukuwere said although "some individuals" were not happy with the implementation of the indigenisation regulations, the process was in line with the country's laws.

He said the process of indigenising the banking sector would be completed before the end of July.

Minister Kasukuwere said implementing the indigenisation regulations was a painstaking process but it was "a worthy cause".

"It is a painful decision but there is no gain without pain," he said.

He dismissed claims that the indigenisation programme was against Foreign Direct Investment.

Minister Kasukuwere said foreign investors were welcome but they should adhere to the country's laws.

He said all foreign investors were treated the same despite their relations with Zimbabwe.

"There have been perceptions or misrepresentations that businesses from certain friendly countries are exempted from compliance with the indigenisation and economic empowerment legislation," he said.

"It should be made abundantly clear that the law does not provide for such exemptions and is being applied consistently, irrespective of the country of origin of the foreign investor."

He said there were many misconceptions about the indigenisation and empowerment programmes that needed to be cleared. Minister Kasukuwere said the misconception was being driven by various interests, chief among them being the perpetuation of neo-colonial set-up.

He said Government was making efforts to improve its communication strategies about the indigenisation programme. Minister Kasukuwere said, contrary to some assertions that indigenisation amounted to nationalisation, the initiative was an affirmative action programme that required all foreign investors to partner local business people before doing business in Zimbabwe.
- TH