Indeginisation of banks in zimbabwe

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Indeginisation of banks in zimbabwe

Our continued reliance on foreign capital and aid makes us subject to the whims of those who may assist us or provide investment capital for us.

Indeginisation of banks in zimbabwe

Africans must determine their own destinies and not be too dependent on foreign capital or influence. We remain consumers of imported products. I have argued in the past that we all need to support the economic emancipation of the African; he must own and competitively manage his resources.

Tragic truth behind Indigenisation policy Harangued by bellicose threats of closure one minute, and mollified with promises of investment protection the next by a government apparently playing good cop-bad cop with foreign-owned banks and mining conglomerates, it is no wonder that they should feel thoroughly confounded.
One of the key assumptions that shaped my thinking around indigenisation was the belief that most people preferred formal employment to self-employment.
This remains true of the latest policies imposed: And now the Draft Constitution reinforces assertions that the State has the right to evict agricultural landowners and to deny them recourse to the law.
Zimbabwe's indigenisation policy confounds investors Will Zimbabwe cancel big S. Under the empowerment rules, foreign-owned financial services companies will have to sell at least 20 percent of shares directly to locals, while empowerment credits, such as funding for agriculture and youth and women programmes, make up the balance.

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There is therefore no argument that Zimbabweans must own and manage their economy. What we need to do is to build on indigenisation with the singular focus and energy underpinned by utmost integrity, equity and fairness so that we can create a new, inclusive, economic order in Zimbabwe.

We need to look at African leaders who came before us and avoid their mistakes, for most of them came and went without achieving the sustainable indigenisation of their economies.

If they had been honest and done what they professed was necessary, Africa would not be where it is today. The first principle we must appreciate is that not every black African wants to own an enterprise and there is nothing wrong with that. We have different talents and inclinations and appetite for risk.

Indigenisation must therefore not be forced down our throats. It must remain a personal choice we make. Some of us are good managers, some are good technicians, some are good workers and some are good owners. The choices we make must be left to the market and our own ambition.

The government must remain a facilitator of the process and not referee or king maker. The second issue we must accept is that nothing is for nothing — meaning that indigenisation must happen through sound commercial transactions.

Harare - Executives with foreign-owned banks are expecting reforms to Zimbabwe’s indigenisation policy to come into effect during the third quarter. Finance Minister Patrick Chinamasa told investors and fund managers, gathered for the Imara Investment Conference in Harare, on Thursday that President Robert Mugabe’s cabinet had decided to review the policy. Mugabe clarifies indigenisation. all the affected foreign-owned financial institutions operating in Zimbabwe, namely Barclays Bank, Stanbic, Old Mutual and Cabs, Standard Chartered Bank, Ecobank, BancABC, MBCA Bank have all submitted credible Indigenisation and Economic Empowerment plans before the deadline of March 31, ,” Chinamasa. For Zimbabwe, the realisation that the economic status quo had to change came at the turn of the century, ushered in by the fast-track land reform programme. The most commonly expressed sentiment around this program was that it was a good policy, but the implementation left a lot to be desired.

This means that we must attract new investment. The success of this process is not divorced to creating an attractive environment for foreign investment — since we do not have our own savings to invest. With regard to the resource sector, the state is by law the custodian of our mineral wealth.

But it is not the owner. The people of Zimbabwe are the owners and therefore must be the beneficiaries.

Indeginisation of banks in zimbabwe

Any model adopted by Zanu PF must pass this test. We cannot have a situation where you have to support Zanu PF in order to benefit. To date, with regard to diamonds, we have seen how once the state assumes sole ownership, corruption, selfishness and patronage creep in.

To me this is a vital issue that can derail indigenisation. Third, the process of indigenising Zimbabwe must not destroy wealth or value.With Zimbabwe’s incredible amount of buried wealth under its land which is so immense that the world will be breaking doors to get into Zimbabwe once it embarks on a totally unique and untraditional march of new trade and commerce between those wanting to do business in Zimbabwe.

For example, in Zimbabwe foreign banks were the first banks to offer ATM transactions and remote banking and that they have greatly sped up the process of loan applications.

Garber () notes the ability of foreign banks to offer new financial products such as over-the-counter derivatives, structured notes, and equity swaps.

Indeginisation of Banks in Zimbabwe Essay Unfortunately for the minister (Kasukuwere), banks are special and their interconnectedness makes a systemic crisis contagious and very costly. A disruption at one bank could have a knock-on effect not only on the entire banking sector but the entire economy.

“I am pleased to advise that all the affected foreign-owned financial institutions operating in Zimbabwe have submitted credible indeginisation plans before the deadline of the 31st March Mugabe clarifies indigenisation.

all the affected foreign-owned financial institutions operating in Zimbabwe, namely Barclays Bank, Stanbic, Old Mutual and Cabs, Standard Chartered Bank, Ecobank, BancABC, MBCA Bank have all submitted credible Indigenisation and Economic Empowerment plans before the deadline of March 31, ,” Chinamasa.

Harare - Executives with foreign-owned banks are expecting reforms to Zimbabwe’s indigenisation policy to come into effect during the third quarter. Finance Minister Patrick Chinamasa told investors and fund managers, gathered for the Imara Investment Conference in Harare, on Thursday that President Robert Mugabe’s cabinet had decided to review the policy.

Tragic truth behind Indigenisation policy