AN ANALYSIS OF THE IMPACT OF THE INDIGENISATION AND ECONOMICEMPOWERMENT POLICY ON YOUTH EMPLOYMENT: THE CASE STUDY OF HARARE(2007-2013)

BY

DZAREYA CLIFF, T.

A DISSERTATION SUBMITTED IN PARTIAL FULFILMENT OF THEREQUIREMENTS OF BACHELOR OF SCIENCE HONOURS DEGREE IN

POLITICAL SCIENCE

DEPARTMENT OF SOCIAL AND ADMINISTRATIVE STUDIES

FACULTYOF SOCIAL STUDIES

UNIVERSITY OF ZIMBABWE

APRIL 2014

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CHAPTER ONE

INTRODUCTION

1.1 Background to the problem

In the pre- independence era there were some disparities as far

as the economic, social and political activities were concerned.

Whites were better placed than Africans as they could occupy top

official posts in government, own large farms and mines which

they took forcefully from blacks. Some legislation ware also

enacted to ensure that Africans were casted far off from the

political and economic spotlight. The Land Apportionment Act

(1930), Land husbandry Act (1954), Industrial Reconciliation Act

and the repressive Pass Laws were all meant to trample Africans

under the European feet. Masaka (2011:332) has this to

say,”...colonial tactics of disempowerment of indigenous black

people incapacitated them to maintain their agricultural

successes in arid, inhabitable & overcrowded pockets in Zimbabwe

that they were settle in. Raftopolous (1994; 41) argues that,

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“the poverty of the African majority was racially induced.”

Colonial legacy of scandalous land resource distribution...

disparities between indigenous people of Zimbabwe and the white

colonial settlers during the colonial era has had a direct

bearing on the contemporary developmental challenges of post

colonial Zimbabwe”. The laws and some other repressive actions of

the whites prompted the Africans into embarking on a campaign of

doing away with the oppressive white governments through forming

trade unions, political parties, nationalist movements as well as

the liberation war that brought independence.

Matunhu ( 2012), notes that the move towards empowering the

people was advocated by groups such as the war veterans and the

Affirmative Action Group(AAG) that came under spotlight in 1994.

He also noted that the programme did not happen suddenly but was

began way back as far as 1980 where a commission known as the

Riddell Commission was set to look into the rural land issue.

The commission noted that there was land under the whites’

ownership which was being underutilized and about 218000 black

families were resettled. In 1990, the Indigenous Business

Development Centre (IBDC) was formed to promote Black

entrepreneurship by allocating states assets to black Zimbabweans

on preferential terms.

According to the Pro-Poor and Inclusive Development in Zimbabwe:

Beyond the Enclave (2012: 61-62), the Zimbabwean government

turned to market-driven reforms in 1990 which sought among other

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things to retrench workers. This was one of the major impediments

to widen up the scope of employment in Zimbabwe.

The Zimbabwean government embarked on a Fast Track Land Reform

Programme in 2001 as way of indigenising the Zimbabweans. Ibid

(2012: 24) notes that, against these background donors and

investors deserted Zimbabwe and as result formal employment

deteriorated.

The Indigenisation and Economic Empowerment Act 14 of 2007 was

gazetted on March 7,2008 and was signed into law on April 17,

2008.The law provided for companies with a share capital above US

500 000 dollars operating in Zimbabwe to arrange for 51% of their

shares or interests therein to be owned by indigenous

Zimbabweans. On January 29, 2010, the Government of Zimbabwe

published regulations with respect to the Act, thereby rendering

the law effective. The Indigenization and Economic Empowerment

Act (Chapter14:33) of 2007 forms the basis of how an indigenous

Zimbabwean benefits from the programme. The act also outlines who

should benefit from the programme as well as whom really the

indigenous man is. It also covers gap on the powers and circles

the minister responsible for the Youth, Indigenous and Economic

Empowerment exercise his duties. In a way it gives the minister

the powers to take initiative over the implementation of the

whole program that is having databases deciding who should

benefit what.According to the indigenisation and Economic Act of

2008The programme was meant to equalise the once disadvantaged in

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the pre- independence era due racial discrimination as well as

their children. The policy serves a good purpose since it seeks

to bring the once disadvantaged at par with the former advantaged

groups. This will also see an indigenous Zimbabwean benefiting up

to 51% of shares in foreign owned companies. Through the Employee

Ownership Scheme, workers will benefit up to 10% of profits

ripped by a foreign owned company.

However due to the policy’s demands several foreign owners of

companies have responded negatively and opted to move away their

companies to other neighbouring countries where they fully make

utility of profits attained in their investments. Some other

willing foreign investors have been scared by the country’s

indigenous policy. Thus the policy has caused unemployment rife

as industries were major employers of the youth in Harare. The

objective of the government of improving the employment rate have

been buried six feet underground as there seems no any likelihood

of attracting foreign investors who have funds and money to

resuscitate industrial growth and agricultural production.

Smith(2011) is of the view that, “the government’s achievement if

all this happens will be the disempowerment of the country’s

most important productive sector investors.... mainly because of

their success in producing products that the markets are prepared

to buy. In creating acceptable goods or commodities, they also

generate jobs, export revenues and tax revenues”. In light of

this observation, it is thus likely that job creation

opportunities will be limited if the government operates in

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pursuit of indigenisation policy provided that it follows its

stipulated policies.

1.2 Statement of the Problem

The Indigenization and Economic Empowerment Programme sought to

serve a good purpose of doing away with the economic disparity

between the blacks and whites as the Act posits. It is

theoretically designed to cater for empowerment of indigenous

Zimbabweans, but practically its implementation has raised more

questions than answers on whether it meant to facilitate parity.

The policy has become problematic as it is seemingly elite

driven. It appears as if those benefiting are top government

officials who have access to all opportunities laid by the

ministry responsible for youth and economic empowerment.

Harare metropolitan province is yet to receive loans from banks

to initiate projects proposals forwarded by youths. CABS have

received a number of applications from youth aspiring to embark

on projects, but just a few of them have managed to receive loans

as Gumbo and Dube of studio7 news have noticed in 2012. It thus

becomes probably clear that youths will not benefit from the

programme.

Moreover the ruling elites are the ones who are financially

equipped to buy shares from foreign owned companies than the

majority Zimbabweans. According to the Crisis Report of 2012

shows that communities are not fully benefiting from the policy.

They were also better placed as far as grabbing farms is

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concerned. Besides all this it is also alleged that the program

is being promoted on partisan basis as only those who are

patriotic and loyal to Zanu-Pf are the major beneficiaries.

The system is also characterised by the ceding of 51% shares to

indigenous Zimbabweans by foreign owned companies. This has

prompted foreign investors to shift attention from investing in

Zimbabwe to some other countries. This also left majority of

Zimbabweans employed in foreign owned companies jobless.

Masaka (2011) notes that the seizure of farms from whites also

adversely impacted on employment as the more expertise white

farmers who produced enough raw products which were processed by

industries. The black farmers failed to meet the standard that

the whites had set as a result the industries in Harare fell

short of raw materials to process thereby impacting on youth

employment. Some industries had to retrench their employees so as

to equalise between profits and production as well as to minimise

costs. In light of these observations, the researcher was

prompted to come up with conception that the indigenisation and

the economic empowerment policy have become problematic rather

than being a solution to the economic disparities.

1.3 Justification of the Study

The centric theme of this study is to have an in depth

investigation on the impact of the indigenisation and economic

empowerment programme on youth employment. It also looks at why

the programme has been regarded as one of the major contributing

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factors to unemployment which is rife that Zimbabweans have

encountered particularly the youths who are future leaders.

Regardless of relentless efforts by the theoretical framework of

the indigenisation policy like National Indigenisation and

Economic Empowerment Fund (NIEEF), Employee Share Ownership

Scheme (ESOS), the programme has some loop holes that adversely

impact on youth employment. The study will highlight how the

programme is labelled a failure as well as recommendations on how

it can be implemented to work on the best interest of indigenous

Zimbabweans and bring about economic parity.

Policy makers will deduce what sound and vibrant economic policy

to embark on so that unemployment would be exterminated. And also

what economic paths to follow as well as what policies best suit

the majority.

Not only that, the research will also enrich the existing

literature by providing with some vital information that could

have been left out by scholars and experts who have revolved

around the topic under scrutiny. Lawmakers as well as those in

the academic field will greatly benefit on how to implement the

best workable methods of creating employment using the

indigenisation policy. It will also come up neutral conclusion

based on objectivity of the gathered information.

1.4 Objectives of the study

The overall objective of the study will be centred on the impact

of the IEEP in Zimbabwe on youth employment.

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The study will also seek:

To identify why the indigenisation and economic empowerment

programme is a stumbling block to youth employment.

To examine why there should be a revision of the programme

so as to pave way for youth employment.

To examine the weaknesses and strengths of the

indigenisation policy in relation to youth employment.

To measure the effectiveness and efficiency of the

programme.

To give recommendations on the sufficient ways to ensure

equitable distribution of loans so as to eradicate

unemployment.

To explore the prospects of the programme becoming a success

and major youth employing policy.

1.5 Research Questions

The research seeks to answer the following questions:

1. Is indigenisation policy really empowering the intended

recipients?

2. Is the programme the congenial policy ever to cater for

inequalities posed by racial segregation or there might

be other more suitable?

3. How the programme can be converted to be of good use

and benefit the indigenous Zimbabwean as far as

employment and empowerment are concerned.

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4. Does the programme have any propensity of becoming the

major platform for youth employment in Zimbabwe if

given enough ground to be correctly implemented?

5. Are the majority of the Harare youths benefiting from

the indigenisation programme?

1.6 Hypothesis

The indigenous and economic empowerment programme if correctly

implemented will facilitate youth employment.

1.7 Methodology

Methodological triangulation of quantitative and qualitative willbe employed in this research. Qualitative will be employedthrough key informant interviews, participant observation, focusgroup discussion and in-depth interviews. Quantitativemethodology will be done through questionnaires that arestructured and some that are semi- structured. The data analysisprocedure will be conducted through thematic sampling and coding.Documentary review will be also employed so as to acquireinformation that could not be attained through means ofinterviews and any other kind of research.

1.7.1 Key informant interviews

Key informant interviews are qualitative formal discussions with

people with special respondents which will be employed n carrying

out the research. The purpose of key informant interviews is to

collect reliable information from the professionals and experts

and think- tanks for example the chairperson of the youth board

and bank managers who will provide the most key information which

may not be reviewed by any other person due to its

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confidentiality. The key informant interviewees will be selected

through snowball sampling. The ministry of youth and economic

empowerment will also be visited so as to provide with

information on how the programme has progressed so far and what

really are the prospects of the programme being a success. The

officials of banks that are participating in the disbursement of

funds will also be reached. In the course of applying this

technique, topic guides will be used so as to restrict the

respondents to giving relevant and objective information critical

to the impact of indigenisation policy to youth employment.

1.7.2 In-depth interviews

The researcher will apply in-depth interviews for respondents who

are not easy to take on for focus group discussions. These

include senior government officials and professionals of high

status. Respondents will be asked to provide with data concerning

the progress of some of the indigenisation boards like National

Indigenisation and Economic Empowerment Board (NIEEB), Community

share Ownership Scheme (CSOT), National Indigenisation Economic

Empowerment Fund (NIEEF), National Youth Fund (NYF) among others.

Also to be included are the bank officials especially those of

Central African Building Society (CABS). These will provide

statistical data concerning the number of youth who have

benefited from the programme against those who are yet to

benefit. They will also provide data on the amount of money

disbursed so far for the youth to embark on productive projects

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and whether the youth are really responding in a positive way to

the policy.

1.7.3 Focus Group Discussions

Random sampling technique will be applied to select participants

in focus group discussions. Participants with different opinions

concerning the prospects of the programme in bringing youth

employment will be reached. These will be respondents from

different locations within Harare. These should dispose their

feelings towards the indigenisation policy and what way they

expect the programme to be conducted. These also are expected to

divulge how the programme has affected youth employment

particularly in Harare has been affected.

1.7.4 Questionnaires

This quantitative technique will be done through structured and

semi structured questionnaires. Close-ended ones will be employed

so as minimise time and to prevent the respondents from flooding

out of the subject. Open- ended will be employed were necessary

so as to give the respondent an ample space to fully express

him/herself. Questionnaires will sometimes be conducted through

e-mails and information to be analysed is that got from

respondents who would have responded because some would find it

time wasting to answer through e-mails.

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1.7.5 Documentary Review

The study will also use documentary research to collect data .The

major advantage of this technique is that it is good for

comparisons purposes .Documentary review helps the researcher to

compare the Economic Empowerment projects and their impact on

youth empowerment which have been done in other places other than

Harare. Documentary review will be conducted through reading a

lot of literature revolving around the topic. These can be

journal articles, newspapers and published textbooks, reports by

think tanks, government departments, and donors among others.

This will help the researcher to analyse and compare the

information that he was not able to probe. The researcher will

also be aware of the bias that could be posed by journalists and

scholars due to their political affiliations and certain

organisations they are employed with.

1.7.6. Data Analysis

Data analysis techniques like thematic sampling will be employed

which entails the use of themes so as to avoid wholesale

analysis. Coding will also be of relevant importance and will be

done through the use colours resembling the issue with the same

idea or theme. For example the blue colour can be used to

resemble those respondents who are of the view that there is a

prospect of youth empowerment and employment in Harare through

the implementation of the indigenisation and economic empowerment

programme in Zimbabwe.

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1. 8 Limitations It may be difficult to get in touch with the responsible ministerfor youth and indigenisation due to cumbersomeness of work. Banksmay also refuse to give particular important information due toits confidentiality. Limited time research may also be anotherfactor that may limit the efficient gathering of information.However to overcome this limitation documentary review will beused to obtain the information that could not have been obtain inthe above mentioned circumstances. The research will also belimited to complications of some of the research techniques to beemployed in this study. Since the indigenisation programme is anew phenomenon no much work has been available in hard copy.

1.9 Delimitations

Harare will be used as a case study in this research. The study

will focus on the Indigenisation and Economic Empowerment Act

from its enactment in March 2010.The study will also focus on who

are benefiting from the IEE programme and also the results from

the IEE policy. The research will also focus on the beneficiaries

of the IEE programme .In addition the effects of the IEE

programme on Harare youth employment will be analysed .The

research will focus on why the IEE programme is necessary for

youth employment in Harare. The research will also be limited to

the period covering 2007 to 2013.

CHAPTER TWO

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LITERATURE REVIEW AND THEORATICAL FRAMEWORK

2.1 Introduction

There have been various scholars and experts who have revolved

around the issue of indigenisation and economic programme in

Zimbabwe. It will also identify the gaps left by the scholars as

well as providing with solutions on how the programme can be

implemented to best suit its intended goals. The research’s

literature review will examine scholarly opinions basing on the

communism and capitalism. The main reason behind that move being

that, the indigenization programme’s main agenda is to do away

with the capitalistic societal arrangements created by white

colonialists that saw the economy being controlled by just a few

white elite. The on- going literature review will also unveil the

relevance of the capitalist perspective on economic development.

2.2 Conceptual Framework

Indigenization is a process of transferring property privately

owned for the public good (Matunhu 2012). In the case of Zimbabwe

it is thus the transference of properties from the white elite

group to the black majority that is giving the blacks same

economic opportunities with the whites.

According to Devenish (2001: 42) indigenisation is a process

whereby investors are obliged to transfer all or part of their

investment into the hands of locals. According to the

Indigenisation and Economic Empowerment Act (IEEA) section 14:33

“an indigenous person refers to any person who before 18 April

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1980, the date of Zimbabwe’s independence, was disadvantaged by

unfair discrimination on the grounds of his race and any

descendents of such person.” The IEEA is necessary to the

economy of Zimbabwe since it facilitates economic growth and

encourages fair treatment of Zimbabwe’s citizens cutting racial

gaps.

Empowerment is according to the Word Web dictionary, is “the act

of conferring legality, sanction or formal warrant”. In this

instant it is the act of legally giving the equal opportunities

of employment and sharing of resources between blacks and whites.

According to the Indigenisation and Economic Empowerment Act

(2007:4), “empowerment” means the creation of an environment

which enhances the performance of the economic activities of

indigenous Zimbabweans into which they could have been introduced

to through indigenisation. Thus the ongoing literature review

will be guided upon the concept of economic self determination.

2.3 Literature Review

According to the IEEA section 14:33 “an indigenous person refers

to any person who before 18 April 1980, the date of Zimbabwe’s

independence, was disadvantaged by unfair discrimination on the

grounds of his race and any descendents of such person.” Against

this backdrop it is unlikely to accommodate youths who are whites

and have started their businesses without the assistance of lands

or mines gain even if they started after 1980. It is in the view

of this researcher that the policy’s stipulation of

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taking 51% shares from whites who did not enjoy the privileges

which their fore fathers enjoyed is very unfair. This is

tantamount to segregation along racial lines. The CZI proposed

amendments to S121of 2010 recommend that the word autochthonous

could have been used to describe the early settlers of the land.

In such circumstances the policy does not include whites born in

Zimbabwe as indigenous. In this regard it likely that youth

especially white of white colour will be left out the circles of

the programme as they will not get employment opportunities.

According to Gwisai (2002: 2) “economic decolonisation must be

conducted by selfless people for the benefit of the economy”. His

argument is very generous in nature but unfortunately the

indigenisation programme is not being implemented in such a way

that every Zimbabwean youths are benefiting. It seems as if the

programme is beneficiating youths who support Zanu PF simply

because it spearheaded the programme. In a way it seems as there

is only a shift of powers from the whites to black elite at the

expense of the majority, thus there is no difference between the

black government initiatives from those of whites. The other

issue that follows is that people who are spearheading the

programme are marred with geocentricism.

“...... the general objective that every business of or above

that prescribed value threshold must within the next five years

from the date of operation of these regulations, or within five

years from the commencement of the business concerned, as the

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case may be, cede a controlling interest of not less than 51% of

the shares of interest therein to indigenous Zimbabweans, unless

in order to achieve other socially or economically desirable

objectives. A lesser share of indigenisation or a longer period

within which to achieve it is justified.” [IEEA chapter 14:33

section 3(a) ].Given such a scenario it is contestable that the

programme will not be adapted by foreign owned companies in a

pleasing manner. The CZI propose that the 51% be reduced to

something like 20-25% because it seemed to be too high a target.

This can also have an adverse outcome on Harare youths’

employment since the investors would opt for other better

operating environments and opening their industries in some other

countries. That shift impacts on employment on the part of youth

because if companies close the youths will have nowhere to be

employed.

Being interviewed by the assistant editor of Sunday Mail

Munyaradzi Huni about the fear of youths losing jobs because

companies are closing due to the uncertainty created by the

indigenisation , the 51%local and 49%foreign ownership structure,

Minister Kasukuwere (former minister of youth and indigenisation)

gave examples of companies that have responded to indigenisation

and set up shop in Zimbabwe like Pick n’ Pay, Ecobank and some

other Chinese companies which came to operate in Zimbabwe under

the indigenisation policy. If such companies are cooperating,

amid widespread criticism of the policy it is likely that if the

policy is given space for maturity prospects of employment are

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very high. One then wonders why Chinese companies are welcoming

the conditions set in the indigenisation policy and the Western

ones are rejecting it. It maybe probably that the Chinese

companies are lightly treated by the Zimbabwean government and

the Western ones being hardly punched because of sanctions they

imposed on Harare. In addition to that the Chinese companies

provide their workforce from China paying a deaf ear to the

jsdobless local youth. Thus from this perspective the researcher

cogitates along the lines that the programme is not creating

employment environment for youths in Zimbabwe and Harare in

particular.

According to Chengu(2012),the IEEA section 15(1) requires the

minister to maintain a database of people who are potential

beneficiaries of controlling interest in none –indigenous

businesses no criteria are set out for the purpose of determining

who ought to be entered on the database and who ought to be

excluded. Chengu (ibid) further notes that the legislation merely

provides that, “if the minister is satisfied” that the

application is made “in good faith” the applicant “shall be

registered in the database”. He further comments that this

arrangement leaves the possibility of plans being accepted

rejected on basis of “who” rather than “what” is proposed in the

indigenisation plan. Under such circumstances it is likely that

the minister may use his discretionary power to give loans to

those he wills probably on partisan basis. Harare has been voting

for the opposition, Movement for Democratic Change of the former

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Prime Minister Tsvangirai (MDC T). So youth employment and

benefits from the programme will be just a dream. Zanu PF will

not be willing to share the gains of the indigenisation programme

which they spearheaded with their so called adversaries whom they

accuse of not protecting the revolutionary gain. The majority of

youths therefore will be left unemployed.

Furthermore, according to Makwiramiti (2010: 8) “the IEEA just

like the Black Economic Empowerment (BEE) of South Africa has

been viewed as a black elite enrichment program in that

beneficiaries enrich themselves whilst the majority of people

remain in poverty.”

According to Makwiramiti (2010: 220) the law (IEEA) is a way for

the government to pump out cash from foreign firms operating inZimbabwe and that the money will go to the top officials but not

to the economy of the country and ordinary people who rank among

the poorest in the country. On the other hand, Veloso (2009: 12)

argued “that there is nothing wrong with IEEA, there is nothing

extra ordinary about the policy as many countries such as South

Africa had similar policies." Makwiramiti (2011:12) postulates

that, “the IEEA is a good move which has been adopted by the

government of Zimbabwe but the way in which it is implemented

doesn’t seem to be benefiting the economy of Zimbabwe in the long

run.” The former minister of youths and indigenisation owns an

oil company which he claims he benefited from indigenisation.

Under such circumstances it thus becomes questionable whether

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really the indigenisation programme is meant to benefit the

people at grassroots levels.

According to the Zanu PF manifesto 2013 over the next five years

Zanu PF will create value of over 7,3 billion US dollars from the

indigenisation of 1,138companies across 14 key sectors of the

economy (Team Zanu PF Manifesto 2013:12). There is a sense of

truism that the youths may have the opportunity of being employed

if the plan goes in a positive way. It is the task of this

research therefore to look on the feasibility and truism in the

above statement since the government even under the inclusive

government has failed to produce a budget of over two billion. In

light with this observation it is highly probable that the

indigenisation programme is not likely to create employment.

The manifesto of 2013 also posits that in the next five years

around 2,265 jobs across all key sectors of the economy will be

created. If that is so the level of unemployment rate will

considerably decrease. However Zanu PF seems to be explicit on

how such jobs would be created.

According to Katsande (2013), offering youth the opportunity in

participating in the Zimbabwean economy, the youth development

fund is an endeavour by government to elevate entrepreneurs,

create jobs and promote skills development among young

Zimbabweans. The Kurera/Ukondla Youth Development Fund over the

past year it has been in existence has so far spent close to Five

Million US Dollars as of January 4, 2013. This is oriented

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towards the youths if the programme is transparently applied.

Youth will be taught how to start effective businesses and be

able to pay back their loans to banks that could have loaned

them.

Katsande (2013) goes further to say that, “... Kurera/Ukondla

Capacity Building Program is an initiative under the Youth Fund

being coordinated by Zimbabwe Youth Council supported by Old

Mutual and The Ministry of Youth Development Indigenisation and

Empowerment with a purpose of creating a national capacity among

the youth in the area of business skills and technical skills

through training. Envisaged result for this process is an

enhanced skills base for young people so they can better manage

and grow their business enterprises, re-pay their loans and

become productive contributors to the Zimbabwean economy.The

partnership with technical trainers has been that which delivers

through a programme which is three phased, which include basic

business skills training, technical skills training as well as

mentoring and market linkages.”

Katsande (ibid) also noted that, “… youth fund is not structured

and has not been administered in a way that guarantees every

applicant funding upon submission or discriminates using any

criteria whatsoever, but seeks to challenge the innovativeness

and creativity in young people in coming up with bankable

proposals that create jobs in the process.” Katsande gives a

comparison of the youth fund in Zimbabwe to that of South Africa

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known as umusobomvu Youth Fund (a rising dawn) of 2001 whose

mandate is to create jobs, skills development and transfer wealth

to the hands of South Africa’s young people. The Umusobomvu is

meant for youths’ benefit in participation in South Africa’s

Black Economic Empowerment Policy (BEE) and so is the kurera

/ukonhla Fund. Given the above standpoint it is likely for the

Youth Fund in Zimbabwe to benefit the youths in getting jobs and

creating employment if they consider the South African way.

However the path that the Zimbabwean path has followed is totally

different from Zimbabwe where some who have surpassed the youth

age play a critical role in allocating funds thereby tempting

them to keep some of the funds for their personal gain. The

Movement for Democratic Change Policy Handbook (2013: 211) states

that, “The MDC defines the youth as the young people between the

ages of 16 and 35”. So some well above 35 are benefiting from

what is meant for the youth. Following the MDC path it can also

be noticed that youths at the age of 16 may not benefit since

little attention have been paid to them. In that regard it is

likely that the programme may not reach the standardised or the

anticipated levels.

Obi (1991: 33) argues that there is a wide consensus among

development economists that small-medium scale, labor intensive

industries can enhance employment creation as well as advance a

wide variety of other development goals like improved income

distribution. The Zimbabwean indigenous policy have gone beyond

that, instead of funding small and medium enterprises the

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government have gone to the extent of forcing foreign owned

companies to cede 51% shares to the indigenous which is not

business friendly. South Africa’s funds for Umusobomvu are

derived from companies that willfully promote the programme.

Foreign owned companies prefer to operate under such environments

thereby creating employment opportunities because foreigners

especially from Europe are better financially positioned than

Africans. Their inclusion in business or their partnership with

the local ones will bring better employment opportunities for

indigenous youths.

According to Rodney (1972; 45) African development is possible

only on the basis of a radical break from the international

capitalist system which had been a major agent for

underdevelopment. If one considers Rodney’s line of cogitation,

it may be that the indigenisation and economic empowerment

programme works in the interest of the majority as it seeks to

give all the opportunities of employment to the once

disadvantaged blacks due to white capitalists’ discriminatory

practices. The capitalist system started by whites only isolated

Africans from tasting the economic sweets and became employees

who were being paid a little amount of money. Through the

indigenisation programme that is already underway youths will be

employed, some going as far owning companies. The international

capitalist system favours foreign investors especially those from

European countries who want to own up to 100% shares. This could

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leave Africans in a state where they solely depend on European

funding there by undermining employment.

Dube and Gumbo (2013) “... the empowerment drive is failing to

attract the country’s youth with very few applying for funds

under the 10 million US dollar CABS youth fund known as

Kurera/Ukonhla. Brian Mpofu head of the fund, told senate’s

indigenisation and empowerment thematic committee that there was

a general law uptake of the fund throughout the country. He said

since last year only 2.7 billion US dollars has been disbursed.”

In this respect it is completely very surprising to give credit

to the program as the most relevant to ensure employment and

economic stability.

According to www.mydie.gov.zw/index.php/en/articles, the

empowerment department is responsible for;

Fund youth business and income –generating projects,

Enable youths to participate in the mainstream economy and

contribute to economic growth and development and

Create employment for young people of Zimbabwe.

It adds on to say that the Ministry had partnered with financial

institutions to create opportunities for youth empowerment

thereby ensuring their active participation in the mainstream

economy and combat youth unemployment. In light with the above,

since the programme is national thing youths who reside in Harare

have opportunities to benefit from it. Unemployment will be

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minimised as well as creating platforms which will see the

beneficiaries paving way for other youths to benefit as they did.

According to Makwati (2012), “The law has been used to parcel out

pieces of the economic cake and opportunities to a few connected

cliques of people while the majority of intended beneficiaries

remain with nothing, as has happened in the past with other

empowerment schemes.” Lance Guma of SW radio Africa has

reiterated that Kasukuwere owns a company known as chrom Oil and

has some shares in BP and Shell holdings. It can be that the

funds that should be directed towards indigenisation programme

are being swept under the carpet and used for elite’s benefit.

According to the Newsday (2012), Kasukuwere was quoted to havesaid that Stanbic bank have written to him making available a

loan facility to support our young entrepreneurs to start working

on projects. He said, “This is a major boost and welcome

development as we seek to place the youth at the centre of

national development.” The Old Mutual also joined in by offering

US $11 million which the minister said would benefit all the

country’s ten provinces. Given such a standpoint it is fair for

one to accentuate to the idea that the indigenization programme

if properly and sufficiently funded in a proper channel may lead

to youths’ employment. The implementation process seems to be

opaque which may cause the programme to be corrupt and fail to

bring about its intended purpose.

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Kasukuwere also said, “All our youths irrespective of our tribe,

religion, creed or political persuasion has unfettered access to

the funds.” If the ministers’ words were true, the programme thus

is justified and should be implemented. If such national

programmes be applied are applied on partisan basis there may

arise problems like people being divided along party lines and

some acting in opposition of the policy in as much as it is a

good one. More so the minister’s words can be just a mere

formality of presenting before the public, but in actual fact the

issues on the ground are totally different from what he said.

According to Makwananzi (2011: 11) “there is a need for self

reliance so that the Zimbabwean will achieve a sustainable

economic growth.” According to Makwananzi (ibid: 12) the IEEA

will provide for the establishment of the fund which will provide

resources for business starts up and finance capacity building

projects on behalf of indigenous people. By doing thus the IEEA

is encouraging self reliance among Zimbabweans to enhance

economic growth in Zimbabwe. It is difficult to predict that the

IEEA will produce favourable results for sustainable economic

growth. Already there have been allegations of corruption and

patronage by a variety of media and independent organisations

that the ministry of indigenisation have been marred with. In

this respect one then doubts whether such a programme will

efficiently deliver as it is intended.

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It is not true that the indigenisation programme is solely to

blame for rife unemployment that have hammered the country for

the past decade, but rather it seeks to serve a good purpose that

is to empower indigenous Zimbabweans to have full control of

their resources which they had been alienated from before.

As elucidated above , it is imperative for one to accentuate that

over and above all the indigenisation and empowerment programme

seeks to serve s good purpose although it diluted by political

interventions. If the practical implementation is done in a

proper way empowerment and employment is ensured.

2.4 Theoretical Framework

According to Matunhu (2012) the Zimbabwean indigenisation policy

is both political and economic. It is political in the sense that

it aims to correct injustices posed by colonial injustices and

economic in that it seeks to empower marginalised communities to

develop themselves. Matunhu (ibid) goes on to say that for an

economic entity or asset to be said to be indigenised, it must

have been belonging to the private sector.

As this is so, the research intends to employ the communist

theory which entails the equal sharing of resources between and

among citizens of a given community. Communism can be traced back

to theorists like Karl Marx. For Marx Communism include the

abolition and replacement of private property by communal

ownership (Marx 1918: 58). In this case, to analyse the

efficaciousness of indigenisation programme in a bid to ensure

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equitable distribution of economic resources the research will

greatly peruse to find out whether it really saw the equalisation

in economic sweets.

Haralambos and Holborn (2002: 869) argue that private property

and ownership of economic means should be abolished and replaced

by communal ownership of the means of production that is the

replacement of capitalism and socialism. In a way there should

not individual ownership of property as did the whites

(capitalists) before the commencement of the indigenisation

programme, who were just a few elite group controlling the means

of production. The community thus should control the means of

production rather than just a few persons.

In a communist society, interests’ conflicts vanish and hostile

groups on material wellbeing cease to survive (Morgan 1972: 146).

As this is the aim or major objective of the indigenisation

programme, all the indigenous black people would have access to

the natural resources such as land, gold, diamonds, platinum and

control over agriculture and manufacturing industries. Also under

the theory workers produce for themselves and ensure economic

stability which is similar to Zimbabwe’s indigenisation policy

which is empowering the local people.

Crow (1988: 83) proffers that there is no way of providing a

“blueprint” of a socialist and communist project for they come in

different forms as influenced by different historical

backgrounds. He argues that wherever they have been implemented

29

they have yielded considerable success. The Soviet Union and

China are typological examples where the success story of

communism can be told.

To critique the theory of communism is the elitist and the

capitalist theories. The elitist entails that the top echelons

are the ones who benefit the most from the country’s resources on

the expense of the majority. Capitalism involves better

considerations of political economy concerning government role in

relation to the economy as a whole Martin (1984: 71). The

economic set-up of capitalism is structured in a way that

industrial production of wealth in capital is within private

hands. (Ibid) notes that the government should fully protect

private property as a way of enhancing capitalism. These

theories will be compared to the communism to find out which one

best result in youth employment.

2.5 Conclusion

From the conceptual framework, literature review and theoretical

framework proposed above, it is thus clear that the research will

be based upon the concept of self determination which proffers

the need for local people to control their economic destiny. This

is what the indigenisation programme is theoretically intended to

produce. The literature review has also laid out the objectives

of the study while the theoretical framework has guidelines on

the theories which are to be adopted in the research.

30

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