Indigenisation: Chinamasa offers investors “reassurance”

via Indigenisation: Chinamasa reassures investors May 7, 2014 by Everson Mushava for NewsDay

GOVERNMENT has once again signalled a major climbdown in its empowerment and indigenisation policy with Finance minister Patrick Chinamasa assuring foreign investors that no one would take 51% of their business as prescribed by the Empowerment Act.

Chinamasa said Indigenisation minister Francis Nhema was already working on a sector-by-sector indigenisation programme as a way of luring foreign investors into the country.

Chinamasa’s assurance made on Monday in Harare at the two-day conference organised by local think tank, SAPES Trust, signals a major climbdown on the party’s robust one size-fits-all indigenisation programme that observers say was the reason foreigners shunned investing in the country.

The conference ran under the theme Enabling Environment, Consolidating Constitutional Reforms and Strengthening National Institutions.

“We are (also) inviting investment in water, power generation, roads, railway network, irrigation infrastructure, information and communication technology and the government will invite operators through build-operator-transfer skills,” Chinamasa said.

“Indigenisation minister Francis Nhema will put a proposal to the Cabinet, sector by sector, and government is quite comfortable with the injection of foreign capital in the banking sector because it will increase the volume of credit to the productive sector,” he said.

Zanu PF used the indigenisation programme as its main message in last year’s elections which it proceeded to win against its main rival, the MDC-T led by Morgan Tsvangirai, in a watershed poll that ended the inclusive government between Mugabe, Tsvangirai and the MDC led by Welshman Ncube.

But after the elections, Zimbabwe’s economy showed signs of distress as the country failed to attract foreign direct investment due to the indigenisation programme championed by the then Youth, Indigenisation and Empowerment minister Saviour Kasukuwere.

As the country continues to experience an economic downturn, former South African President Thabo Mbeki made a surprise visit two weeks ago where is believed to have advised Mugabe to tone down the indigenisation rhetoric to lure investors and rescue the economy.

Chinamasa’s remarks on Monday could be an indication that the cash-strapped government is planning to revise the empowerment programme and dump the one-size-fits-all strategy in order to lure investors.

Mines have already been cowed to cede 51% of their shares to locals, while a move to do the same in the financial services sector created serious confrontations between Kasukuwere and Gideon Gono, the then Reserve Bank of Zimbabwe governor.

“The government is committed to assisting in reforming and building the public service capacity, not least improvement in service delivery in all sectors, effective and quick decision-making and the eradication of self-defeating red tape and corruption,” Chinamasa said.

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16 comments on “Indigenisation: Chinamasa offers investors “reassurance”
  1. Jrr56 says:

    Trust him if you dare, otherwise it is all hot air. The laws have not been repealed yet and the confiscation of properties and assets have not stopped. Worse these people have stated that they will continue to take from WHITE Zimbabweans at will. Never Never deal with such racists.

  2. Jono Austin says:

    So what if the laws are repealed-they can reinstate retroactively whenever they feel like it. They can also nationalise whenever. They can do anything they please except rig the economy.

  3. Mupurisa says:

    What use is a reassurance whose shelf life is not known, and coming from one of the devil’s advocates? Who does he expect to trust him, or any ZANU PF minister for that matter. Kunonzi kupenga uku!

  4. Little dorrit says:

    Any “Assurances” will have to be cast in granite and underwritten by IMF World Bank etc – and the present dispensation will not succeed in getting these organizations to cooperate in the absence of the rule of law, freedom of speech etc.

  5. LUCY says:

    Desperate Burning Chinamasa at this moment in time will say anything.He will be prostituting himself to the highest bidder next! He is like the hungry fox luring the freezing chicken into its den for cuppa. Once inside the chicken warms up, gets comfortable and the fox pounces.even if he changes the indegenisation laws what guarantee is there that he will not wake up tomorrow and repeal the repealed law?

    There is no senserity on the part of this government. Mind you they ‘won’the election on the back of this law and its the only forder they can feed the masses with.Take it away and what will they promise come 2018?

  6. Msizeni silwelani says:

    Investors do not need assurances from individuals. Govt duty is to create a conducive environment for local and foreign investors to gain trust on the system and sow their hard earned cash. Zanu pf govt can do this by simple resigning.

  7. Doris says:

    Gosh, now I feel so much better about investing in Zimbabwe!!! NOT!!

  8. zim reeper says:

    zanupf and mugabe think the world are as thick as the people who vote for them .Still trying to figure it out but why????????//

  9. NBS says:

    What about your local investors Mr chinamasa? What about us Zimbabweans. We are too scared to invest in our own country. Please wake up. You are all missing the boat. If anyone is a little different from ZPF they are too scared to invest in their own country????? You aim to protect foreigners and yet you continue to blitz those who love their own country?? Wisdom? I think not!

  10. munzwa says:

    well said NBS…best zanu resign and watch how a country should be run…

  11. masvukupete says:

    Just give a chance those that are able to manage the country and investment will pour like manna from heaven. As long as Zanu at the helm no real businessmen will invest only the Rautenbach and the Wolg???? whatever. Also remember that most of the people who heading companies the world over are the 40 to 50 year olds who have never heard anything good about Zanu so to them its a non starter.

  12. Daniel says:

    Prove it by giving back what you have already stolen!!!Land and then the rest.

  13. adam jones says:

    I would stay in the cold if I was the freezing chicken – rather than die by fox.

  14. adam jones says:

    I would stay in the cold if I was the freezing chicken – rather than die by fox.

    Let fox die of hunger – then the weather will get warmer and chicken will rejoice again. China masa must go to his ‘all weather friends’ in the east. ‘Landslide victory?’ – my foot!!!

  15. Saddened says:

    Lets not forget whose mascot is a chicken i.e. “Jongwe’ Ironically they are being left in the cold by friends & foe alike!! Even the fox i.e. China doesn’t want to help

    • INVESTOR says:

      I knew the owner of Noshio Motors and Benbar/Tromps who LOST his entire investment.You know the story as you were Minister for Justice at the time. Temba Mliswa illegally seized the company under the guise of indigenisation and a fake “Banda Trust” he was rewarded for that by becoming Mashonaland West Provincial Chairman!! Investors were ready to inject huge capital into Zimbabwe’s Number One Choice for new hoists, new lathes, new bending machines, equipment and create more employment but as soon as Mliswa illegally seized the company they backed off!

      He is still “above the law and untouchable”! Chris Mutangadura, Mrs Zinyembe, Johannes Tomanna, should make an example of him and order Temba Mliswa to compensate the owner for his entire loss. The President is well aware of the situation as a letter was written to his Excellency 3 weeks ago! (Mliswa even had the audacity to say the President “approved” of the illegal takeover) If ZANU-PF is sincere and Temba Mliswa compensates the Foreign Investor of Noshio Motors and Benbar/Tromps,then maybe just maybe other investor’s will see sincerity and flock to Zimbabwe. As long as Temba Mliswa is “untouchable” I don’t see this happening soon.

      Even Presidential affairs Minister Didymus Mutasa has distanced himself from his nephew! This goes to show the character of the person.

      Actions speak louder than words, so time will tell.

      Potential Investors

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