Black Economic Empowerment and Corporate Governance in Zimbabwe

2770 Words Mar 31st, 2012 12 Pages
Introduction
Indigenous Zimbabwean as defined in the National indigenisation and Economic Empowerment Act refers to anyone who, before independence in April 1980, "was subjected to unfair discrimination [presumably in Zimbabwe] on the grounds of their race, and includes a descendant of such a person". Thus indigenous Zimbabwean means any person who before 18 April 1980, was disadvantaged by unfair discrimination on the grounds of his or her race , and any descendant of such person, and includes any company association, syndicate/ partnership of which indigenous Zimbabweans form the majority of the members or hold the controlling interest.
National indigenisation and Economic Empowerment Act, defined indigenisation as a deliberate
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The government should not scuttle business ambitions of emerging indigenous entrepreneurs instead its major role should be to facilitate and create a business atmosphere that assists those with business acumen and pedigree to develop their enterprises for the betterment of a majority of the people. The Shabanie and Mashaba Mines saga is a case in point. It is an enduring lesson of how government should never, ever flex muscles in a sector which it is clueless about. The consequences are evident for all to see and do little to convince even those that the empowerment programmes are meant to benefit. Indigenous people who have the acumen to run a particular business should be given the chance to do so without government interference. It remains a sad reminder to national goals for economic emancipation when locals are squeezed out of the business and when these locals see opportunities they have identified being whittled away simply because of petty bureaucracy.
Regulations of the Zimbabwe Indigenization Policy
Regulations to implement the 2008 Indigenization and Economic Empowerment Act requiring local control of foreign firms doing business in Zimbabwe took effect amid rising concern the program would dash any interest investors might have in the country. The

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