via Bulawayo24 NEWS | Zim industry calls for review of indigenisation policy by Tawanda Musarurwa 04 March 2014
Industry has called for the Government to exclude the manufacturing sector from the indigenisation policy.
The call was made by Surface Investments chairman Narottam Somani while addressing the Parliamentary Portfolio Committee on Industry and Commerce during a tour of the company today.
“You may reserve the sectors like mining and agriculture, but allow industries to be open 100 percent for foreign direct investment, we have 85 percent unemployment,” he said.
Somani contends that excluding the country’s manufacturing sector from indigenisation will help it in accessing increased capital, technology and expertise from foreign countries.
Surface Investments – potentially the country’s largest cooking oil manufacturer – is a joint venture initiative between the Industrial Development Corporation of Zimbabwe (IDCZ) and Midex Global of India, with an equity split of 26 percent and 74 percent, respectively. The company has since submitted its indigenisation compliance plans to the Government and now awaits approval.
Part of their compliance plan includes listing on the Zimbabwe Stock Exchange. Zimbabwe’s Indigenisation and Economic Empowerment Act (2007), which was enacted in 2010, mandates all foreign companies operating in the country to secure 51 percent ownership of shares by indigenous Zimbabweans through partnerships with business people, community share trusts and worker share trusts.
Somani, however, told the Parliamentarians that the wording of the policy was not investor-friendly.
“The wording of the Indigenisation Act is wrong. Please call it Foreign Direct Investment (FDI) Policy because investors are naturally afraid of indigenisation. By calling it an FDI Policy this ensures that the focus is on attracting investment,” he said.
However, statements by the Minister of Youth, Indigenisation and Economic Empowerment Francis Nhema indicate that a review of the indigenisation policy is unlikely.
Concerns by industry are that indigenisation has had a negative impact on new investment inflow into the country.
But a recent study by Consultancy Africa Intelligence (CAI) shows that foreign direct investment (FDI) inflows into Zimbabwe since 2010 have not reacted negatively to the implementation of the Indigenisation and Economic Empowerment Act (2007). – See more at: http://bulawayo24.com/index-id-business-sc-companies-byo-43734.html#sthash.vIJEgASC.dpuf
COMMENTS
Investment flows into Zimbabwe have not reacted negatively to the indigenisation policy? Well if these unknown persons have said it it must be true, mustn’t it? So where is all this investment that has not been negatively affected? Where are all these new factories and mines and farms?
Must be all this investment does not exist. Indigenisation policy is racist and does not work. Everybody knows this. It in place to benefit thieves only.
Consultancy Africa Intelligence. Ever heard of it? Of course not. Just part of ZPF propaganda and disinformation to keep the leadership happy.
Mr Somani, why only the manufacturing industry???why would someone want to invest in one sector knowing that other areas are being destroyed by the very policies you have asked relief from..Grow up and speak on behalf of your country holistically..
there is NO indigenization, there was never ANY indigenisation….there was thievery and self enrichment of a small nihilistic and kleptomanic clique, an elite project..an oligarchy agenda to disempower, plunder, steal and protect itself. This is a grand plan to be evaluated together with salarygate (which is just a tip of the iceberg). This is also compounded by a soft society which just takes anything in…even sewerage!! There must be business not self enrichment through the two faced animal called INDIJINIZATION (Chinotimba style). We must not be hoodwinked. We are NOT stupid, but why are we eaten with our eyes open like kapenta fish. Cowards…..You shall move to become cowherds. KKIKIKIKI. Kuseka nhamo serugare at the most docile society on earth. Waiting for GoDDort to come!!!! Stupid people who pretend to be intelligent!!! KIKIKIKIKI
The policy is racist to the core. Finish and klar.