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More warnings for Zim BEE bill
25/09/2007 21:45 - (SA)
Harare - A Zimbabwean opposition lawmaker warned on Tuesday that a proposed law allowing locals a majority stake in foreign-owned firms would further ruin the tattered economy and benefit only the tiny elite.
"What we are seeing is that the government is systematically destroying the economic foundation which we inherited at independence," from Britain in 1980, opposition Movement for Democratic Change MP Willias Madzimure said.
"The moment this law is passed, it will be used to enrich those already rich. With this law we are not going to attract foreign investment," he said during a parliamentary debate on the bill.
Zimbabwe's economy has steadily declined over the past seven years, characterised by inflation running well past the 6 000% mark, with at least 80% of the population living below the poverty threshold.
The draft Indigenisation and Economic Empowerment Bill has raised fears among foreign-owned companies operating in Zimbabwe that they will lose control of their firms.
Indigenisation and Empowerment Minister Paul Mangwana told parliament: "We are simply redressing colonial imbalances.
"When our people participate in the mainstrean economy they will stick it out no matter the hardships. They will not go anywhere."
He said the indigenisation programme would not be done haphazardly but said the process would be gradual and in consultation with businesses.
Multinational firms which may be affected by the new policy include Barclays Bank, Bindura Nickel Corporation and mining giant Rio Zim.
President Robert Mugabe has warned that his government would seize and nationalise firms he said were profiteering excessively in a bid to incite Zimbabweans to revolt against the state.
- AFP
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