Government and the private sector should draw valuable lessons from the listing of
As reported in The Herald Business yesterday, the shares have a nominal value of
We are heartened to see a group such as Old Mutual Zimbabwe warming up to the indigenisation plan.
The first lesson we can draw from the trade is that the Government’s empowerment programme is not some dinosaur seeking to devour the corporate sector.
There has always been a chorus of detractors pouring scorn on the indigenisation programme, seeking to paint the picture of an evil machination by Government designed to rip industry off its profits and shareholding.
Private and international media and local opposition elements keen to advance their foreign masters’ plans, have all out-stampeded each other to condemn the noble empowerment plans.
And for years we have sought to highlight that the empowerment drive is not an election gimmick but a reality born out of the need to help the economically marginalised.
And here we are today.
Old Mutual Zimbabwe, one of the biggest corporates in the country, has just confirmed that.
Another lesson we can draw from this development is that the empowerment plan has been broadened to accommodate small buyers.
According to the Securities and Exchange Act (Cap 24:25), the ATP is a lower and second rate exchange.
It is an alternative to the traditional stock exchange. And this will allow those small traders who have for many years been shut out of the
The fact that trades happen on the open market enhances transparency in the empowerment programme. In the past there have been concerns relating to the distribution of shares in companies but trading on the ATP will ensure transparency.
Also, the market will determine the price of shares on the ATP and this will potentially deliver fair value.
With these lessons, we then call on other companies to take the same route and allow participation of the workers and local communities.
This could be an easier and yet more rewarding route for the corporates and the marginalised communities.
It is our fervent hope that we will see more corporates coming on board on the ATP to trade empowerment shares.
We are heartened by Government’s resolve to ensure that foreign-owned companies are partially indigenised as this gives Zimbabweans access to resources that have for long been in the hands of the elite.
We are pleased to note that OMZIL’s indigenisation plan, approved by the then
Government should push harder to have more Zimbabweans empowered. We need to see more initiatives focused on empowerment.
While Government is working on creating a conducive environment for business, the private sector must also do its part to comply with the law.
We say well done to
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