by Tendai Madinah, Zimbabwe, September 1997
THEME = ECONOMY
Some previously state-owned companies - Dairiboard Private Limited, the Cotton Company of Zimbabwe and the Cold Storage Company - have already been privatised and are doing very well commercially.
The source of suspicion is the controversy surrounding the award of tenders, for the construction of a new airport, and also the award of cellular phone licences. There was controversy over the airport tender being given to Cyprus-based Air Harbour Technologies, which is locally represented by President Mugabe's nephew, Leo Mugabe. Cabinet had reversed an earlier decision by the Government Tender Board, to award it to a more experienced French company - Aéroports de Paris.
The award of a cellular telephone licence to Telecel, a company jointly owned by foreigners and a consortium of local business people close to the ruling party, including, Leo Mugabe, also stirred controversy. The people's favourite for the tender, was local businessman, Strive Masiyiwa, who is challenging in the Supreme Court, the decision to award the tender to Telecel.
Vice-President Joshua Nkomo threatened to resign from the government of national unity, when Masiyiwa failed to win the tender. Reacting to Nkomo's threats, President Mugabe said he will not submit to threats, arguing that communications is a "sensitive issue" and Masiyiwa cannot be trusted with the contract, because he is likely to be a "front person" for foreigners. This prompted opposition politician, Alois Masepe, to comment: "The President is speaking in "tongues". Telecel is owned by a Tutsi of Zairian origin and by an American. In Zimbabwe, we don't have a Tutsi tribe, so surely these people must be foreigners?
The privatisation of state companies began in September, and now the business community, civil society and the Opposition are urging the government to come up with a coherent policy for carrying through this policy.
In an editorial, the privately-owned weekly financial newspaper, The Financial Gazette, said that merely setting up the National Investment Trust, (an organisation for spearheading the indigenisation programme) without putting in place stringent and enforceable measures and safeguards, to prevent a handful of Zimbabwe's emerging moguls from hijacking the programme, will certainly not be enough. Zimbabwe's experience over the past few years, when a host of lucrative government tenders, were won by virtually the same people having friends and allies in high places, didn't make for transparency and accountability.
The editorial was supported by both the Opposition and by economists. Issac Manyemba, an economic analyst, says that the ruling ZANU party elite's dominance in the privatisation programme, should be removed. Instead, an independent institution, commanding the respect and trust of the business community, must be established. This institution should be composed of representatives of captains of business and industry, representatives of business organisations such as the Confederation of Zimbabwe Industries (CZI), The Zimbabwe National Chamber of Commerce (ZNCC), The Zimbabwe Congress of Trade Unions (ZCTU) the judiciary and human rights organisations.
Privatisation means that local black Zimbabweans will be able to play an active role in business. The already mentioned National Investment Trust is headed by Legal and Parliamentary Affairs Minister, Emmerson Mnangagwa, and Planning Commissioner Richard Hove. Cephas Msipa, Minister of State with special responsibility for public enterprises and indigenisation, says that the final draft policy on indigenisation is now ready, and will be scrutinised by those interested. In truth, the government seems to have everything to say when it comes to privatisation and indigenisation!
There have been adverse reactions to the government's methods. One economist says: "Government must only act as a facilitator. The private sector must be in charge of driving the economy. Nothing seems to happens at grassroots level. As always, it's the privileged few who continue to profit. Zimbabwe seems to be lagging at least a 100 years behind South Africa when it comes to giving the people, what rightfully belongs to them, yet Zimbabwe has been independent for 17 years, whereas South Africa has only enjoyed three years of true independence. The black population in South Africa controls almost 3% of the Johannesburg Stock Exchange. In Zimbabwe, it's zero. 80% of Zimbabwe's economy is foreign- owned".
Another economist, Edmore Tobaiwa, says that the privatisation programme must include people in the rural areas, as they need to participate in the national economy. Since people in rural areas have no access to newspapers, Tobaiwa suggests that the government must have radio programmes dealing with the privatisation programme. And these programmes should be broadcast in the local languages.
END