Confederation of Zimbabwe Industries Says Start Indigenization With Parastatals

  • Gibbs Dube
The Confederation of Zimbabwe Industries said the indigenization program should be broad-based and include parastatal firms like the National Railways of Zimbabwe, Air Zimbabwe and the Grain Marketing Board

The Confederation of Zimbabwe Industries says the Harare government’s indigenization program should start with state enterprises, many of which are on the verge of collapse with heavy operating losses and debts.

The CZI said the indigenization program should be broad-based and include companies like the National Railways of Zimbabwe, Air Zimbabwe, the Grain Marketing Board and a number of others.

At its recent annual conference, the business organization said some of state enterprises could be saved from collapse if indigenous - i.e. black - Zimbabweans are allowed to acquire shares in them alongside private investors.

Industry and Commerce Minister Welshman Ncube told VOA Studio 7 reporter Gibbs Dube that indigenous Zimbabweans willing to buy shares in state enterprises should form consortiums to acquire equity in the public-sector firms.

“The inclusive government is willing to support business people who will set up companies aimed at buying shares in state enterprises,” Ncube said.

But Harare economist John Robertson cautioned that state enterprises are unlikely to do better simply by virtue of being indigenously owned as they collectively need billions of U.S. dollars in recapitalization.