The Morgan Tsvangirai faction of the Movement for Democratic Change has called on Indigenisation Minister Patrick Zhuwao not to behave like a bull in a china shop because his proposed 10 percent levy on all foreign-owned companies will destroy the few companies that are still operating in Zimbabwe.
Zhuwao, President Robert Mugabe’s nephew, said last month Zimbabwe was not going back on indigenisation and might introduce a 10 percent levy on all foreign-owned companies saying this would raise $93 million a year for empowerment.
Under the Indigenisation Act foreign-owned companies valued at more than US$500 000 must cede 51 percent of their ownership to locals.
“Zhuwawo should be strongly reprimanded for advancing extortionist policies on already over – burdened and struggling companies,” MDC-T spokesman Obert Gutu said.
“The Minister’s draconian proposal is not only retrogressive but will most certainly cripple the few companies still operating in Zimbabwe. Decades of rampant corruption and misguided economic policies combined with gross mismanagement and thievery by the ZANU-PF regime have already reduced capacity utilisation to around 34% in industry according to the official statistics recently published by the Confederation of Zimbabwe Industries in conjunction with the Zimbabwe National Chamber of Commerce.
“The proposed new levy, coming on top of a myriad of other levies and taxes, will cripple the few existing foreign firms who are going to be forced to pay. The MDC finds it extremely absurd that Zhuwawo would exhibit such kind of archaic and medieval thinking that is essentially centred around illegal and unconstitutional asset – grabbing. It is this kind of retrogressive and anachronistic policy making that has reduced Zimbabwe into a basket case and a virtual banana republic in a very short period of 35 years since the country attained independence from British colonial rule.”
Gutu said that Zhuwawo’s real intention is not to benefit the majority of the people of Zimbabwe but to perpetuate the ZANU-PF regime’s culture of patronage that will only benefit a few politically well – connected individuals and some regime apologists who will get an opportunity to take control of successful business enterprises at no cost to themselves.
“The move by Zhuwawo is blatantly criminal and unconstitutional and thus, should be strenuously resisted by all right – thinking and patriotic Zimbabweans. Zhuwawo should be advised not to conduct himself like a bull in a china shop. He should sober down and desist from being delusional and excitable. His bullish and thuggish approach to issues to do with economic empowerment can only be a recipe for socio – economic doom and political mayhem,” Gutu said.
Full statement:
Friday, 06 November 2015
Patrick Zhuwawo should be brought to order
The MDC would like to register its extreme displeasure and disappointment with the recent statement attributed to Patrick Zhuwawo, the Minister of Youth Development, Indigenisation and Economic Empowerment in which he threatened to impose a 10% levy on all foreign – owned companies.
Zhuwawo should be strongly reprimanded for advancing extortionist policies on already over – burdened and struggling companies. The Minister’s draconian proposal is not only retrogressive but will most certainly cripple the few companies still operating in Zimbabwe. Decades of rampant corruption and misguided economic policies combined with gross mismanagement and thievery by the Zanu PF regime have already reduced capacity utilisation to around 34% in industry according to the official statistics recently published by the Confederation of Zimbabwe Industries in conjunction with the Zimbabwe National Chamber of Commerce.
The proposed new levy, coming on top of a myriad of other levies and taxes, will cripple the few existing foreign firms who are going to be forced to pay. The MDC finds it extremely absurd that Zhuwawo would exhibit such kind of archaic and medieval thinking that is essentially centred around illegal and unconstitutional asset – grabbing. It is this kind of retrogressive and anachronistic policy making that has reduced Zimbabwe into a basket case and a virtual banana republic in a very short period of 35 years since the country attained independence from British colonial rule.
It is beyond reasonable doubt that Zhuwawo’s real intention is not to benefit the majority of the people of Zimbabwe but to perpetuate the Zanu PF regime’s culture of patronage that will only benefit a few politically well – connected individuals and some other such regime apologists who will get an opportunity to take control of successful business enterprises at no cost to themselves. The move by Zhuwawo is blatantly criminal and unconstitutional and thus, should be strenuously resisted by all right – thinking and patriotic Zimbabweans.
Zhuwawo should be advised not to conduct himself like a bull in a china shop. He should sober down and desist from being delusional and excitable. His bullish and thuggish approach to issues to do with economic empowerment can only be a recipe for socio – economic doom and political mayhem. It boggles the mind why Zhuwawo is so hell bent on decimating what is left of the formal economy in Zimbabwe.
The Zanu PF regime has developed a macabre penchant for wanting to pauperise the majority of the people and in the process, virtually turning every Zimbabwean into a beggar or at the very least, an indigent and struggling vendor. Zhuwawo’s ill – conceived and ill – thought out proposal for an additional levy will inevitably escalate capital flight and in the process, exacerbate the suffering of the majority of Zimbabweans who are already living in poverty and destitution.
An MDC government will craft policies and programs that will stimulate the growth of our agro – based economy which will in turn, guarantee food security, investment and job creation. This will be achieved through the strengthening and stimulation of macro – economic stability, leveraging the country’s potential in order to attain efficient, inclusive and pro-poor growth capable of generating jobs and uplifting the standards of living of the majority of our people.
An MDC government will ensure that the economy accommodates every citizen of Zimbabwe regardless of race, colour or creed. It is our vision to do away with all retrogressive and punitive legislation that has the net effect of stifling both domestic and foreign direct investment. We earnestly and fervently hope and pray that Patrick Zhuwawo’s Stalinist and Stone Age economic template shall never see the light of day.
The MDC believes in the creation of a social democratic state underpinned by good governance, democracy, honesty, transparency, accountability, the rule of law and respect for the principle of constitutionalism. We would like to cultivate a culture of obedient or servant leadership, freedom, non-racialism, non-sexism and solidarity. These values are sacrosanct, indivisible and non-negotiable. An MDC government will be able to sustain and guarantee genuine, broad-based and holistic socio – economic and political empowerment of all the citizens of Zimbabwe.
MDC : EQUAL OPPORTUNITIES FOR ALL
Obert Chaurura Gutu
MDC National Spokesperson
(249 VIEWS)
