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Zim fine-tuning BEE policy

Dec 02 2012 09:25 Malcom Sharara, Fin24's correspondent in Zimbabwe
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Harare - Zimbabwe's Ministry of Indigenisation and Economic Empowerment is in the process  of fine-tuning the country’s Broad Based Economic Empowerment  policy (ZBBEEP).

According to the first draft of the ZBBEEP seen by Fin24, the ministry is reviewing the national economic empowerment policy framework, which aims to guide Zimbabwe over the next 30 years (2013-2042).

The draft says the main purpose of the new 30-year policy framework is to provide a national framework to ensure inclusive, broad based, pro-poor and gender sensitive wealth and massive employment creation, equality and overall poverty reduction, within the context of a growing and dynamic economy.

“The main goal of the ZBBEEP is to accelerate over a 30-year period (2013-2042) the inclusive and broad based economic empowerment of previously disadvantaged. 

“In this regard, the ZBBEEP framework will create and strengthen the environment for all Zimbabweans to participate in sustainable economic growth and development,” extracts from the draft point out.

Some of the objectives of the ZBBEEP framework include the eradication of extreme poverty and the reduction of total consumption poverty from 80% in 2013 to single digit by 2027 and thereafter.

The framework also aims to ensure economic empowerment through broad based and inclusive economic expansion with formal businesses in all sectors increasing from 10 000 in 2013 to 60 000 by 2027, mainly through the growth of small and medium enterprises (SMEs).

Another target of the framework is to increase domestic investment from $7m in 2013 to $3bn in 2027, and to around $15bn by 2042, in line with the envisaged economic expansion.

Foreign direct investments (FDIs) are also targeted to reach $1.5bn in 2027 from $105m in 2013.

Some of the guiding principles of the ZBBEEP framework are: 

  • Broad-based approach, pursuing equity and equality concerns to underpin the economic empowerment policy framework in Zimbabwe.
  • Emphasis on broad-based economic empowerment will eventually lead to the indigenisation of the Zimbabwean economy.
  • Creation of more wealth (expanding pie concept), within a dynamic economy underpins successful economic empowerment.
  • Change the conditions that created exclusion, and create conditions that facilitate inclusiveness in the mainstream economy.
  • Efficient provision of infrastructure economic enablers such as energy, water, transport and information and communication technology (ICT).
  • Building confidence and maintaining a positive image of the country.
  • Maintaining macroeconomic stability so that wealth creation can meaningfully take place.
  • Adopting dynamic business models and productive work ethics.
  • Economically empowering rural communities, women and the youth and vulnerable groups (e.g. people with disabilities).
  • Broad-based economic empowerment is everybody’s business in Zimbabwe, and this will start by all development plans at all levels including economic empowerment components. Each sector and level will be empowered to drive the ZBBEEP.

 - Fin24

 

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zimbabwe  |  indigenisation
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