Zhuwao: investor rules unchanged, ignore Chinamasa

via Zhuwao: investor rules unchanged, ignore Chinamasa – NewZimbabwe 25/12/2015

YOUTH and indigenisation minister Patrick Zhuwao says government position on empowerment policy has not changed at all and come 2016 all foreign owned companies must have complied with the law.

Zhuwao cut short his Christmas holiday and met the press to rebuke Patrick Chinamasa for announcing changes to empowerment laws, accusing the finance minister of “treachery”.

He said it was “unfortunate” for Chinamasa to announce the changes in the absence of President Mugabe, suggesting the treasury chief issued a statement on the emotive issue without consulting his boss.

Chinamasa announced Thursday that government had loosened the terms of a controversial law that forces foreign companies to cede a majority stake to local investors.

The finance minister said government was delaying when foreign investors would have to sell off a majority of their holdings.

“All companies that have not yet submitted their indigenisation implementation plans as required by the Act should submit their applications by the new deadline of 31 March 2016,” Chinamasa said in a statement.

The previous deadline was January 2014.

Chinamasa added: “A non-indigenous business may hold the majority shareholding for a period ranging up to five years except for the energy sector, which can go up to 20 years.”

“Existing foreign-owned companies may continue to operate in all sectors of the economy but shall be required to pay an indigenisation compliance levy as a trade-off for non-compliance.”

But Zhuwawo told journalists on Christmas Day that government was not going to allow any company that rejected the indigenisation policy to operate in Zimbabwe.

“Government is not backing down on indigenisation; President Robert Mugabe has pronounced himself on that.

“The timing of that statement is very unfortunate because it was timed specifically when the President was out of the country, when the President has gone on leave,” he said.

“And that to me appears to be very treacherous because we are all supposed to follow the leader of the country because he is the one who has the mandate and for one to then issue a statement around policy issues without having cleared them with the President does not make sense.”

Zhuwao said it was necessary for cabinet ministers to first consult among themselves so that they understand what they announce publicly.

“So, as for now I am appealing to the business community to comply with the empowerment policy and engage with their line ministry,” he added.

In his statement, Chinamasa said existing foreign owned companies may continue to operate in all sectors of the economy but shall be required to pay an indigenisation compliance levy as a trade-off to non-compliance.

He also said that the amended guidelines were aimed at creating a clear and robust legislation and regulatory frame work.

The Indigenisation and Economic Empowerment Act was passed in 2008 under the controversial black empowerment exercise, but implementation has been chaotic, with potential foreign investors warning the law was prohibitive.

Anxious to attract investors, Chinamasa has for a long time been seen as pushing for changes to Zimbabwe’s rigid empowerment laws. He has, however, often been attacked by cabinet colleagues, among them Zhuwao and war veterans minister Christopher Mutsvangwa.

Zhuwao is President Mugabe’s nephew. He often speaks his mind.


  • comment-avatar
    Ndonga 6 years ago

    The last paragraph says it all…
    “Zhuwao is President Mugabe’s nephew. He often speaks his mind.”
    Zhuwao has been demonstrating to us since he was appointed as Minister that he does not have a mind…or certainly one that can think rationally. When will his madness end?
    Here is Minister Chinamasa desperately trying to save the sinking ship SS Zimbabwe and a fellow Minister with a dagga-addled mind is sabotaging all his efforts.
    What difference does it make if Mugabe is on holiday? His brain has been on holiday for some time now. The show must go on and Chinamasa, as Minister of Finance, must try to find money for Government staff wages from somewhere. Perhaps if Mugabe had stayed at home for a change the money saved on this gallivanting would have been enough to pay the civil servants’ salary bill.

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    More sanctions – until this imbecile learns to stop stealing!!!

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    Advise to Zhuwawo is that he should have also consulted his fellow Ministers before making this statement. We want to build a nation not to outclass one another. Those investors will see that there is a lot of confusion amongst the the policy makers. Definitely they will fuel the war of WORDS within the ruling party members. Who suffers worst is the general public and the man on the drivers”s seat President Robert Mugabe that he has failed to rule the country. Next time the President should punish any Minister who make statements that promotes war within the party. That should be said democratically in Cabinet meetings or Polituburo meetings to iron out Policy issues and Min of information and Publicity is the one who should talk to media. The rest should answer questions in parliament as a Minister.

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    Patriot 6 years ago

    Mark 3:25New International Version (NIV)

    25 If a house is divided against itself, that house cannot stand.

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    Yayano 6 years ago

    Why can’t Chinamasa stand up to this Zhuwao guy?
    All Zhuwao seems to care about is enriching himself and ensuring that his uncle stays in power.
    Chinamasa on the other hand is left with a purse with no money and yet they expect him to pay off expenses.
    Chinamasa knows that if the remaining companies close down there will be less revenue as the government will miss out on company and individual tax payments.
    At the same time the civil service will remain the same or even increase and yet he is expected to fund it on a dwindling tax base.

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    paurosi mwanangu 6 years ago

    chimamasa haana kudzidza first time. this time akapusa anoenda kumusha

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    Zambuko 6 years ago



    I see we are still playing good cop bad cop.

    Yes dear. Surprisingly it still works.

    Hmm, try the strawberries. They are fresh.

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    Nyoni 6 years ago

    This Mugabes nephew must be sacked. What is his agenda. Personally he has none. I am sure a woman can do a better job than he can.SACK HIM ROBERT.

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    fad-up 6 years ago

    This nonsense has gone for far too long, 2018 is miles away for this to carry on.. Something must be done to stop this madness. This bickering is all starving and dying citizens has to gobble in…god forbid. It’s time we sleepy zimbos catch a wake up and take back what is ours, not ask or get our votes stolen but take IT back. These blood sucking leeches will never let go… Let’s take it

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    IAN SMITH 6 years ago

    Bob Matibili and Zhuwao are almost done SCUTTLING Zimbabwe.

    Bob knows he is done for sure, just walking has become a challenge.
    Zhuwao has lots of cash in Singapore to escape to, supplied by uncle Bob.

    Scuttling is the act of deliberately sinking a country by allowing corruption to develop unimpeded in all government agencies.

    1)This can be achieved in several ways comrades or party members are exempt from prosecution, opposition parties are dealt with brute force or with detention.

    2) Driving out progressive citizens by imposing ambiguous laws case in point indigenisation ( No sane judge can rightfully enforce this law on citizens outside of corruption that is a fact)

    3) No salaries for the police and army will be the the final act, since the coffers are running dry not too long to go now.

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    Chibwe 6 years ago

    People have been analysing and writing sense for years now but the truth is evident that nothing changes without action. Grace will be the next President and no one can stop that because we only write and never take action against our very insane leaders. They will never leave their positions and we continue to suffer. As long as one of us is still oppressed we all need to feel oppressed and work towards freeing ourselves as Zimbabweans.