Indigenisation law not cast in stone: Nhema

via Indigenisation law not cast in stone: Nhema 29 August 2014 by Veneranda Langa

YOUTH, Indigenisation and Economic Empowerment minister Francis Nhema on Wednesday defended the indigenisation law insisting there was no need to change anything in the legislation.

He said it was perceptions about the country that needed to change.

Nhema had appeared before the Parliamentary Portfolio Committee on Foreign Affairs chaired by MP for Chipinge South Enock Porusingazi (Zanu PF) to clear the notion that the country’s indigenisation laws were deterrent to potential investors.

Porusingazi said in prior meetings by the committee with the Confederation of Zimbabwe Industries (CZI) and Zimbabwe Investment Authority (ZIA), the committee was told the indigenisation laws were not consistent and deterred investors.

But Nhema said he had found nothing wrong with the law, but that the problem was interpretation where some people distorted it and made conflicting pronouncements.

“I have discussed with CZI and ZIA and said when an investor comes they are interested in the principle of the law and its consistency – and the issue is not about the 51% indigenisation requirement, but it is about that when an investor makes his decision he has to be sure that the arrangements have to stick and the next person (minister) would not come and change the laws,” Nhema said.

“What we have to do is to change the mindset of Zimbabweans to ensure when investors come they are comfortable and they understand the law.”

Nhema also said the requirements to cede 51% can be negotiable depending on the extent of the investment.

“On non-natural resources – assuming an investor wants to set up a hydro-electric plant costing billions of dollars and the law says 51%, we look at the impact of the project and that it is going to empower the country in a big way and we do not become worried about the 51%. All I am saying is that there is no one-size-fits-all in application of the indigenisation law.

“I will insist that the community should benefit (minimum 10% to community share ownership trusts), and about 5% to 10% shares should go to workers themselves, as well as that the company should put money towards vocational training centres. No serious investor will say 51% shares to 14 million people is unfair. In Norway where there is oil the laws say 70%.”

COMMENTS

WORDPRESS: 6
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    I had to read this three times before I could grasp how much of a clown Nhema is. He has basically ignored what investors want and instead decided he is going to tell investors what they want. Good luck, you utter prat.

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    Nhema has always been a dick. Nothing has changed. Just because he is “soft-spoken” doesnt mean he’s any different than the rest of them. He’s one of them, pure and simple, probably more use-LESS than most of them. No spine about anything, ever. Same as when he was in the Environment Ministry. Under him we lost more wildlife, more trees, more wetlands, more everything, than ever before. Now we lose more investors because he still cant make a straight comment.

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    Tiger Shona 6 years ago

    He is a Mugabe bootlicker as well, and will defend this law for all he is worth.
    They say Zimbabwe is misunderstood; Do they really think investors are that stupid?
    These cats are in it for themselves.
    Meanwhile, the proof is in the pudding; We are getting hardly and fresh investments, and the RBZ is trying to stop money from leaving the country.

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    chokwadi hachiputsi ukama 6 years ago

    Nhema is a joke. Please wake up from slumber mr minister. Stop flip flopping. We have nothing to lose by reversing that requirement Just put it in black and white that its now : 51pc investor to 49 pc local shareholding. That in itself will bring da much needed investment in the country. Above all , the country will benefit more from da taxes and procurements. You dont need to be a rocket scientist mr Nhema to understand this. We want more jobs for our people. How many jobs have created since you stuck to that erroneous line of reasoning of yours. I really wonder if you ever started any business from scratch yourself. We want people who are pragmatic in that portfolio.

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    “I have discussed with CZI and ZIA and said when an investor comes they are interested in the principle of the law and its consistency – and the issue is not about the 51% indigenisation requirement, but it is about that when an investor makes his decision he has to be sure that the arrangements have to stick and the next person (minister) would not come and change the laws,” Nhema said.

    Now that is nonsense woolley goobledegook! What is anybody supposed to understand in that? Was the Minister who asked the question satisfied with that hogwash???

    An investor bring their money would be put off and take his business somewhere else where the laws are clearand can stand in court and not subject to who inteprets it.

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    just saying 6 years ago

    Mr Nhema could all this supposed ‘misunderstanding’ be because your party comes up with legislation without consulting anyone else. Then when opposition shows itself you people claim ‘misunderstanding’ and make verbal pronouncements that supposedly explain what you think we will blindly believe. These pronouncements are not backed by any changes to to the problem legislation. Truth be told we don’t trust the government and we only see our lives deteriorating by the day. In addition none of you has the courage to tell your leader that he has ‘stuffed up’ but rather belittle yourselves by trying to defend him!! You will have to answer for all this one day & hope that will be soon.