Indigenization

Indigenization –Distributing Poverty Or Wealth Distribution By Dumisani Nkomo I have no qualms about the broader intents and philosophy of black economic empowerment , however such a policy has the potential of actually creating new problems instead of solving old problems .Whilst indigenization and empowerment seeks to correct historic wrongs and involve the previously disadvantaged black majority it could actually result in the distribution of poverty instead of wealth .At times hunger forces people to kill the cow that gives them milk on a daily basis and for a whole week people may revel and feast on meat but in the long term they will run out of meat and pray for the return of the cow that gives the milk .In The same vein if the indigenization and empowerment programme is implemented callously and carelessly it will have genocidal effects on the economy resulting in increased poverty instead of broader economic growth ,employment creation and improved standards of living .I would like to argue that there is something fundamentally wrong with any economic or socio economic model that is predicated on transferring wealth without due emphasis on creation of wealth . Wealth Distribution Versus Wealth Creation The ZANU P.F Election manifesto states that a ZANU P.F would target 1,138 companies in 14 sectors for indigenization in the process unlocking value of U.S 7,3 million .I would like to argue that merely focusing on transferring wealth from one group to another would be suicidal for the economy in a number of respects .We have to grow our national cake before deciding to slice it up among ourselves especially at a time when the cake is shrinking in size and value .Do we not believe that we can make it as black people without grabbing from others ?.Strive Masiyiwa ,Nigel Chanakira ,Mthuli Ncube and Trevor Ncube are some of our very own Zimbabwean businesspersons who have proved that blacks can also successfully create wealth and run successful companies without having to grab from some white businessman somewhere .Sadly some of these great entrepreneurs have been declared unwanted in Zimbabwe when they should be living examples of how black Zimbabweans working together with Zimbabweans of various racial groups can make it on their own . There are just too many people who want to take over farms ,mines and companies without adding any value to the entity ,the economy and the nation .We need wealth creators that will create employment and opportunities for other Zimbabweans not wealth accumulators for whom owning a company is a status symbol not a vehicle for empowerment ,creating wealth and jobs . Patronage and Corruption Corruption ,cronyism and patronage networks are now embedded institutions in our national ethos and the indigenization and empowerment process is likely to deepen and accentuate these cancerous activities which have made the economy similar to the ruins on the ZANU P.F logo .There are valuable lessons from South Africa where the A.N.C National chairperson and struggle icon Baleka Mbethe is facing corruption allegations over a company that was targeted for Black ECONOMIC Empowerment [B.E.E.] .There are also cases of connected young South Africans who have never worked in their lives but are millionaires because of patronage networks which have produced a generation of “tendepreuners ‘ who win tenders without the capacity to deliver services or goods .I hope Minister Francis Nhema institutes an audit on who has benefitted from the current indigenization process lest we find it is a tiny “coterie or “criminal cabal “masquerading as champions of black economic empowerment secretly lining their pockets whilst everybody else wallows in grinding poverty . Milk and Apples George Orwell describes this aptly in his prophetic classic Animal arm were the pigs [ruling class ] set aside for themselves the milk and apples Propaganda chief Squealer tells the other animals “comrades we are eating those apples and drinking that milk for your own sake comrades ,imagine If we failed to eat those apples and to drink that milk Jones would come back “. The past ten years have seen a new class of rich young blacks many of whom neither “toil not spin ‘but whose only claim to wealth is patronage and links with the ruling elite .These are eating and drinking on behalf of the masses . Mass Economic Participation A Myth Whilst mass participation in the economy is noble it is largely mythical as not everybody can own or run a business .This is not racial but universal as the trend in advanced economies with high economic levels is that most people are happy working and earning a salary .This a simple act which has nothing to do with being black or white For most in Zimbabwe what we call businesses are actually survival strategies or coping mechanisms to survive in this harsh economic environment .Many of these people could be happily employed if the economic environment was conducive .Of course there are many people out there who can turn their small businesses into thriving enterprises but surely to expect an entire population to own and run businesses is simply delusional and is the highest form of self delusion and fantasy We now have generation of people who want to run ‘their own things “,their own N.G.Os ,their own bakeries ,their own companies which is absolutely fantastic but the problem is that we are not encouraging the culture of hard work ,productivity and innovation to along with this noble spirit .We cant have a whole nation of people “running their own things “,this is only possibly where an economy has collapsed and people are trying to survive as is in one case .We should not therefore build a whole ideology for whole economic policy based on survival and make this into a national policy . I am all for black empowerment , I am all for indigenization and black empowerment but it needs to be based on the right foundations .It should not be based on grabbing from the whites but building our own viable business enterprises .It should not be based on who you know and patronage networks but on quality of service ,quality of goods and affordability .The final product is not black of white but it should be of the right quality whether it was produced by a black man ,white man or pink man or woman .Indigenization should not become an excuse for poor workmanship ,poor customer care and poor delivery . What Should Be Done Hardworking entrepreneurs should be rewarded through access to credit facilities at reasonable interest ,tender opportunities ,capacity enhancement through skills enhancement and mentoring .Just dishing out thousands of dollars with just result in distribution of poverty instead of wealth . I was actually intrigued three weeks back when I visited a furniture company owned by a black family from Bulawayo .They did not grab it from a white man but their t product was excellent ,their service incredible and the delivery precise .These are the black entrepreneurs we should be empowering not some lap top ,brief case tendepreuners who survive on graft and patronage Mayibuye