Economic Empowerment Bill Ignites Hope

Zimbabwe’s Economic Empowerment Draft Bill has garnered positive responses from stakeholders, who view it as a crucial step towards empowering local communities and aligning economic activities with national development goals.

The draft bill, which aims to increase the participation of Zimbabweans in the country’s economic affairs, was discussed in Bulawayo on 16 July attended by experts from academia and labour organisations. Their perspectives on the bill’s potential impact revealed a mixture of optimism and caution.

Dean of the Faculty of Commerce at Lupane State University, Dr. Sibongile Manzini, applauded the bill as a wonderful development that aligns with the National Development Strategy 1 (NDS1). The NDS1 seeks to elevate Zimbabwe to middle-income status by 2030.

Dr. Manzini praised the bill for empowering Zimbabweans in mineral extraction, entrepreneurship, and innovation sectors, aligning community development with local industries, and promoting inclusivity.

“This Economic Empowerment Bill is bringing an opportunity for the empowerment of Zimbabweans, so that they can participate in the part of the economy whether it be extraction of minerals, or just getting economic empowerment in terms of inclusivity,” Dr. Manzini said.

She added, “Also being able to participate in entrepreneurial and innovations that are taking place in their areas.”

Furthermore, Dr. Manzini highlighted the bill’s potential to facilitate vocational training for local communities, ensuring their long-term empowerment even after companies cease operations. She stressed the importance of sustainability and leaving resources for future generations.

“Even vocational training will become a possibility, so that long after the companies have ceased operations, our communities will remain empowered,” Dr. Manzini said. “This bill will create sustainability. It will definitely be for even future generations so that we don’t exploit, over exploit the resources and leave nothing for future generations.”

Chairperson of the Zimbabwe Congress of Trade Unions (ZCTU) Western Region, Ambrose Sibindi, expressed enthusiasm for the bill’s removal of the previous 51/49 percent shareholding requirement.

Sibindi considered this requirement investor-unfriendly, as it discouraged potential investors from fully utilising their capital in Zimbabwe.

“The labour organisation has always been against this issue of 51/49 percent meaning that the local person must always have a share of 51 and the investor 49,” Sibindi said.

Sibindi added, “We’ve been asking that alone was not investor friendly that police it was throwing away the investors and now we are happy that this bill if it goes through the act will clear that has been abolished which i think is a plus to the to the country because it will attract investors knowing that when they come here with their monies they really use them to the fullest.”

Sibindi also welcomed the provision in the bill that promotes employment opportunities for locals, viewing it as a positive step towards community development. He stressed the importance of implementing control measures to ensure that local communities genuinely benefit from such provisions.

He said, “There is a clause that says they must give back to the locals when investors come here which I think is a good thing blowing back how in terms of employment even in terms of putting some money to develop this this the local area.”

However, Sibindi raised concerns about the administration of the Community Ownership Trust, cautioning that strict control measures are necessary to ensure that communities benefit as intended. He emphasised the need for transparency and accountability to prevent mismanagement of community funds.

Moreover, Sibindi expressed apprehension about the state of vocational training centres in Zimbabwe, particularly in high-density suburbs. He revealed that most of these centres are already closed due to a lack of funding and outdated technology. Sibindi called for financial support and technological improvements to revive these institutions and maximise the opportunities presented by the Economic Empowerment Bill.

The stakeholder consultative meeting provided valuable insights into the perspectives of different stakeholders regarding the proposed Economic Empowerment Bill. With positive feedback from individuals like Ambrose Sibindi, the bill appears to be on track for implementation. The meeting highlighted the potential for increased investment, community empowerment, and vocational training opportunities that could contribute to the economic development of Zimbabwe.