HARARE — Zimbabwe President Robert Mugabe says foreign companies that comply with his indigenization law are guaranteed security. His comment is a deviation from his earlier promise that he would revise the policy, which analysts repeatedly have said scares away investors.
Source: Zimbabwe’s Mugabe: Indigenization Law Ensures Security – VOA March 16, 2017
At the official launch Thursday of an $82-million cement manufacturing plant by a South African company, PPC Zimbabwe, a frail looking 93-year-old Zimbabwe President Robert Mugabe said he was happy the company had not resisted the indigenization law, as other foreign companies have done.”By so doing, PPC Zimbabwe has demonstrated what so many companies are struggling to put in place,” said Mugabe. ” And it has demonstrated also that the indigenization policy and philosophy is no hindrance to foreign investment. But instead the policy guarantees security of such investment.”
The southern African nation passed the controversial indigenization law in 2008, which forces foreign companies to cede 51 percent of their stake to black Zimbabweans. Mugabe argues that indigenization policy is meant to correct colonial imbalances that marginalized blacks in Zimbabwe.
On Thursday, PPC Zimbabwe managing director Kelibone Masiyane did not want to be drawn into the politics of the controversial law while speaking to reporters after Mugabe’s speech.
“I always say the cement business is a 30-year business,” said Masiyane . “So whatever we might be encountering at the moment is only short-term. We are looking into the future, so we are here in Zimbabwe for the long run.”
Last year, indigenization minister Patrick Zhuwawo gave a 90-day ultimatum to foreign companies that had not submitted plans for how they would comply with the indigenization law. He did not implement his threat of revoking their licenses when the deadline passed, which made investors jittery.
Before that, Zimbabwe had nationalized all diamond mining, but some took the matter to court and the cases are still pending.
COMMENTS
I wonder if there isn’t a better way to do this ,to achieve control where control was denied for so and too long,while mitigating the fears ,uncertainty and jitters of non-indigenous investors.Perhaps control could be relinquished on the basis of performance,say blacks might start with 40% control,and over time investment opened up depending on performance.One has to worry as much about Government and bureaucratic interference as well as indigenous control here.Confidence needs to be demonstrated,and the indignation of viable white-owned farm land should serve as a cautionary tale.
I should add that at some point the legitimacy and value of European and Asian Zimbabweans needs to be acknowledged and adopted vis-a-vis land reform.Europeans and Asians should not be relegated to an inferior or disadvantaged position when all the strengths of all the citizens,color,race and gender included,are essential for the greater good of country and citizens.
Another stupid comment by a very delusional man. Open your eyes you idiot. Your country is destroyed despite having enough resources to make it the richest in Africa. Young black children are being starved with consequence that will affect their intellect. You deserve to be brought to justice for your never ending wanton need of self grandiosity and absolute devasting effects on millions of lives. Pathetic example of the human species. Absolutely useless human being.