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The regulations require companies with a value of more than US$500,000, to report on the distribution of new shareholdings. The Indigenization and Economic Empowerment Act proposes for a 51 % transfer of shares in foreign companies to indigenous black citizens.
The Zimbabwe Congress of Trade Unions criticized the drive to establish black majority control of foreign companies, saying indigenization will benefit just a few blacks who will replace minority whites. Businesswoman Marah Hativagone, director of the food processing ingredients company CodChem and a former president of the National Chamber of Commerce, said indigenization is desirable but added that the current initiative is poorly timed as it comes just as the economy is recovering its …show more content…
It should be refined and become a pragmatic growth strategy that aims to realise the country's full economic potential while helping to bring the black majority into the economic mainstream which further creates a market for enterprises. The program must clearly identify individuals with potential who can be supported to build enterprises and businesses from scratch and create new wealth and jobs. The over focus on re-distributing current wealth only serves to bring disrepute to an otherwise very noble and necessary …show more content…
R. Baker and B. P. Quéré contend that most theories on corporate governance do not acknowledge the importance of the state in bringing about good corporate governance practices but tend to focus instead on relationships between boards of directors, managing directors, shareholders and other stakeholders. This approach would leave the government abdicating its responsibilities to the citizens in the country because ultimately business practices impact on the general populace. Here the Enron saga is a case in point. Instead governments have tended to take the role policing the aftereffects of bad corporate governance practices. A pragmatic shift should be taken in the case of Zimbabwe. A proactive stance that anticipates the foregoing implementation of the indigenous economic empowerment strategies on corporate governance as we know it in industry and commerce today should be
The Zimbabwe Congress of Trade Unions criticized the drive to establish black majority control of foreign companies, saying indigenization will benefit just a few blacks who will replace minority whites. Businesswoman Marah Hativagone, director of the food processing ingredients company CodChem and a former president of the National Chamber of Commerce, said indigenization is desirable but added that the current initiative is poorly timed as it comes just as the economy is recovering its …show more content…
It should be refined and become a pragmatic growth strategy that aims to realise the country's full economic potential while helping to bring the black majority into the economic mainstream which further creates a market for enterprises. The program must clearly identify individuals with potential who can be supported to build enterprises and businesses from scratch and create new wealth and jobs. The over focus on re-distributing current wealth only serves to bring disrepute to an otherwise very noble and necessary …show more content…
R. Baker and B. P. Quéré contend that most theories on corporate governance do not acknowledge the importance of the state in bringing about good corporate governance practices but tend to focus instead on relationships between boards of directors, managing directors, shareholders and other stakeholders. This approach would leave the government abdicating its responsibilities to the citizens in the country because ultimately business practices impact on the general populace. Here the Enron saga is a case in point. Instead governments have tended to take the role policing the aftereffects of bad corporate governance practices. A pragmatic shift should be taken in the case of Zimbabwe. A proactive stance that anticipates the foregoing implementation of the indigenous economic empowerment strategies on corporate governance as we know it in industry and commerce today should be