Indigenisation:’Firms say no further dev’

Indigenisation:’Firms say no further dev’ – NewZimbabwe 08/04/2016

THE government is evaluating indigenisation complaints and plans submitted by foreign companies amid claims by South African firms in the country that there have been no further developments on the empowerment issue, which they want resolved quickly.

Impala Platinum (Implats) and other South African mining firms in Zimbabwe have inked previous indigenisation deals with Zimbabwe, but these are now being reversed.

Implats, which majority owns Zimplats, said there had been “no further developments with the indigenisation plans”.

This tallies up with Deputy Indigenisation Minister Mathias Tongofa who told MPs on Wednesday that line ministries were evaluating the indigenisation compliance plans submitted by foreign firms.

Executives with other South African groups in Zimbabwe said they were “awaiting responses” from the government regarding their compliance plans.

Tongofa said: “We are waiting for a comprehensive position from the various ministries, which will be chaired by the minister of indigenisation. Until we get that, we cannot say this one is that (in terms of compliance status); we are waiting for that comprehensive decision.”

South African companies in Zimbabwe that are set to be affected by the indigenisation policy – whose deadline for submission of compliance plans lapsed on March 31 – include Implats, Anglo Platinum, Metallon Gold and Aquarius Platinum among others.

President Robert Mugabe yesterday met veterans of the country’s liberation war who immediately demanded stakes in foreign companies ceding majority shares.

Implementation of the indigenisation policy has caused a rift within his Zanu-PF party, with his nephew Patrick Zhuwawo – who is also indigenisation minister – clashing with Finance Minister Patrick Chinamasa over foreign banks’ compliance.

Chinamasa said banks had essentially complied after submitting their plans, while Zhuwawo hit back saying the foreign banks – including Standard Bank and Nedbank – had submitted unacceptable plans.