via Govt further softens indigenisation November 15, 2013 By Herbert Moyo Zimbabwe Independent
FINANCE minister Patrick Chinamasa says government will adopt a flexible approach in the implementation of the indigenisation policy, which will see foreign investors in crucial sectors such as banking, manufacturing and infrastructural development being spared the requirement of ceding 51% shareholding to the state or indigenous Zimbabweans.
This is a major climb-down from former Indigenisation minister, Saviour Kasukuwere’s combative approach which forced all foreign-owned companies, including banks, with a net asset value of US$ 500 000 or more to cede 51% shareholding.
During a briefing to Western diplomats on the government’s recently-launched Zimbabwe Agenda for Sustainable Socio-Economic Transformation (Zim Asset), Chinamasa admitted that the lack of clarity around the policy which was the cornerstone of ruling party Zanu PF’s election campaign for the July 31 polls, which it won, had created uncertainty that may be hindering the country’s chances of attracting foreign investment.
“We need to be very clear about indigenisation and in the coming months (Indigenisation minister Francis) Nhema will be clarifying sector by sector what the policy means,” said Chinamasa, who added that it might even be necessary to change the name due to the negative perceptions around it.
“There are examples like in power generation where we will not demand 51% from the investor. It is the same with roads and railways. Even with manufacturing you cannot say to Coca Cola I now own your business.”
However, he said there are other areas such as mining where the 51% policy may be implemented because the country needs to benefit fully from depleting non-renewable resources. Chinamasa’s remarks came after concerns raised by the Norwegian and Swiss diplomats that lack of clarity around the implementation of the policy was breeding uncertainty among potential and international investors.
He said indigenisation was necessary to create a platform for locals to participate as stakeholders in the Zimbabwean economy having been excluded by the colonial system of pre-Independence Rhodesian era.
COMMENTS
aah ko kuchingotaurai kuti taida kuvana ma votes ungagotora 51%share iwe usuna kana gejo?
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Chinamasa the end of the Rhodesian colonial era was 33 years ago!
What have you and your Government done these past 33 years? Apparently nothing but steal from those that are running successful companies. Who has stopped indigenous Zimbabweans from starting up and owning their own Companies and Banks in the past 33 years! You and your kind are thieves, you do not create wealth and prosperity by parcelling out other hard working citizens property\business, the Government is responsible for make an enabling environment for business\expansion\ investment etc. to take place, but all this Government has done is make threats to take over existing companies!
Correct Clive!!
Chinamasa says they won’t require 51% indigenous staje in certain industries so please invest……………..and then once we have your investment we will require a 51% indigenisation stake in these industries as laid out by our latest law change!!
This is kids stuff and only the most naive White man would fall for this.The nigerians pull this scam every day!
First of all, no one can trust Zanu PF.
Secondly, if they want any meaningful investment, they need to remove this Indiginisation policy altogether.
They also need to understand that in order to get investors’ trust, they need to clearly spell out the terms and conditions BEFORE people invest here.
It is so obvious from their behavior that they are not representing the wishes of the people of this country.
The prblm is no1 trusts this regime anymore. Today they say no more 51% for black Zimbos bt once investors come they will change and grab e investments we have seen this in e agric sector where there ignored BIPs. Its e same pple who told whites to go and hang. Its e same pple who said our party shd strike fear in e hearts of whites. Its e same pple who promised and threatened tit for tat if their gvts don’t remove sanctions. Its e same party which is demolishing pple’s houses they gave them b4 elections and now that elections are over they don’t matter any more. The same situation is obtaining in e agric sector where resettled ppl are now being displaced agn. If they can do this to their citizens what more to “racists and imperialist whites” once they’ve started their businesses and are running viably?
Minister – re your remarks about Black people being excluded from pre-“independent ” (Rhodesian) economy – study the Rhodesian “Blue Books” (as Min Finance you should know what those are) and then look at the newspaper record of the day; work backwards, if you like, from 1980 – National Archives should be able to help you, unless the shelves have collapsed and the filing has not been done for the past 34 years. See how much the Rhodesian Govt put into African education and development, funded from a small tax paying base while dealing with FULL BLOWN UN ENDORSED SANCTIONS (implemented at the insistence of ZANU ZAPU AU – what goes around comes around) and a FULL SCALE WAR. Roads were built. Schools and clinics were built (often only to destroyed by your cadres). Railway lines were constructed and maintained. Dams were built. High density townships were serviced. You got water – which you could drink. Adult literacy was promoted. The Rhod $ was stronger than its US counterpart. A strong budget was handed over in 1980. The list is long. It’s all there, fittingly, in black and white.