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11 June 2012 | Kamalpreet Badasha
The governor of the Reserve Bank of Zimbabwe has called for public procurement contracts to be awarded to domestic firms to boost the nation’s economy.
In a speech entitled Industry supply chain-based economic empowerment as a vehicle to equity based economic empowerment programmes, Gideon Gono stated the government should implement policies to ensure all inputs bought by government departments, public enterprise and local authorities are from indigenous companies. He said this would create a niche market for local people, leading to an increase in their economic activity.
“This empowerment strategy ensures that indigenous people realise immediate benefits through receipts from guaranteed supply of goods and services to companies, as opposed to waiting for annual dividend payments, which are contingent upon the companies making profits and declaring such dividends to shareholders,” he said.
He said the empowerment strategy would result in Zimbabweans owning the means of production for raw materials, allowing them to participate in the building of the economy. He added this would also boost employment in many sectors of the economy, including mining, construction, transport and manufacturing among others.
In the future, the government should implement a framework accelerating the ownership of companies by indigenous Zimbabweans, he concluded.