indigenisation and SMEs

One of the key assumptions that shaped my thinking around indigenisation was the belief that most people preferred formal employment to self-employment. The indigenisation policy has attracted the same tag as the land reform program: a good policy, but people are skeptical over whether or not it will be implemented well. Doomsday scenarios have been painted over the likely outcome of indigenizing Standard Chartered Bank or Zimplats

 If it is agreed that the role of government is to create an enabling environment, and that of the private sector is working within the environment so created to ensure economic prosperity, then surely the burden of implementation lies on us, the people.

The long and short is that indigenisation is an imperative, and it is going to happen whether or not people like it. No one disputes that it is a good policy, therefore we need to participate if we are to make it happen the way we would like to see it. The land reform program has seen over 250 000 families benefiting; we want to see the 2,8 million Zimbabwean SMEs come out winners from this round. Zimbabweans working in “affected” companies need to see it as an opportunity, not as a threat. As business associations and chambers we need to engage with Government and our members to ensure that this program succeeds resoundingly.

Workers picking cotton in Nkayi.

 According to the financial Gazette, Most executives of such foreign-owned institutions are not able to tailor solutions that are suitable for local conditions as they are under strict instruction from their parent head offices. Many also aid their foreign owners in carrying out activities such as transfer pricing, in exchange for personal perks and rewards. One would think that a person in such a position is better off advocating for localisation of their operation, but perhaps that inferiority complex sits deeper, even in more educated minds.