via Indigenisation: Moyo confirms rethink 25/05/2014 by AFP NewZimbabwe
THE government is planning to tone down the controversial equity law which forces foreign companies to cede a majority shareholding to local investors, a cabinet minister said Sunday.
Zimbabwe’s controversial 2007 indigenisation law states that foreign firms must hand a 51 percent shareholding to local partners.
The law spooked investors and was a source of conflict between President Robert Mugabe’s allies, with some maintaining a hard-line stance while others opposed the measures.
“We are reviewing and tightening the indigenisation and empowerment policy by being pragmatic without being dogmatic about it,” he told the state-owned Sunday Mail.
“(Foreign) investors will be allowed to recover their initial capital investment, an appropriate return on investment and operational costs before the sharing of production outputs or profits,” Moyo said.
Moyo however, insisted that this did not mean government was ditching a policy blamed by critics who say it was hurting prospects of attracting much-needed investment.
“It would be sheer folly for anybody to imagine that we would abandon or ditch a policy or programme that was overwhelmingly endorsed by the electorate in unprecedented numbers as recent as 31 July 2013,” he said.
“We are reviewing and tightening the indigenisation and empowerment policy by being pragmatic without being dogmatic about it. There has been some confusion and misunderstanding over the modalities for achieving (the 51 percent threshold.
“Consequently, we pointed out that, going forward there is a need to review, tighten and strengthen both the law and policy so that among other things, we clarify the fact that the indigenous Zimbabweans cannot be expected or required to buy back their God-given natural or economic resources.”
Under the law, foreign owners of Zimbabwean mines were given an ultimatum to surrender more than 50 percent of their shares and find local partners or risk nationalisation.
Mugabe said the law, which followed controversial land reforms, was meant to reverse imbalances which resulted from colonialism.
But critics including opposition leader Morgan Tsvangirai said it would enrich Mugabe’s allies and scare away foreign investors.
Ministers have issued conflicting statements over the policy in recent days and Moyo admitted authorities needed to do a better job of articulating the government position.
“… Yes, it is self-evident that business, diplomatic and media communities have continued to assert that the Government’s position on indigenisation lacks clarity and is inconsistent,” he said.
“This is a serious situation and so we accept that we need to do something about it and we are committed and determined to engage and communicate the indigenisation and empowerment policy to implement Zim Asset in the national interest.”
COMMENTS
There is a trick somewhere to come out I bet
STAND FIRM. Nothing less than complete irrevocable repeal of all offensive legislation. NOTHING LESS THAN THIS – no compliance then no money. Sorry. NO COMPROMISE.
He can say whatever he wants, he is a known liar. Even his friends cannot trust him. No investor is going to do anything in the strength of Moyo’s word. Even Mugabe himself is not trusted. These “people” are stuck in their own “sh1t”. I for one intend to gloat for a while until they are gone.
hear hear hear John Thomas!!
this thieving bufoon is like the rest of them
The Germans have a word which aptly may be applied to Mugabe et al. It is: ‘Schadenfreude’ . So please revel in your Schadenfreude which is the enjoyment of the difficulties of others because the difficulties of ZANU will not end soon.
YYYYaaaaaaaaawwwwwwwwnnnnnnnnnnn!!!!!!!!!
Foreign investors are not stupid, they will never trust this lot.
The Cash cow has run dry for these Zanoids, Mugarbage and co so now they try to encourage investment and then steal again.
The way to get Zimbabwe working is to get ZIMBABWEANS working again.
Doing that will ensure we all pay taxes, PAYE, VAT and companies will pay profit tax, then Zim works again, Govt get income, lots more than they are getting now.
then the country will start to work.
OH DEAR 1 PROBLEM, they will just steal it again and we will be back to square one.
I recon that if the people revolted against the zaniods enmasse then we would see Mugarbage and his evil henchmen running to their castles in Singapore, Japan, China and try to rule in absentia, they wont stay if they know we the PEOPLE will make a citizens arrest.
I digress, Zanu will never let us work again.
Please people, dont get carried away. There is no re-think here. Why are people so eager to trust gukurahundis.
How many black people have lost their land despite the fact that the land grab was said to be meant for the benefit of black people?
Jonathan is, was, always will be the spin doctor. Trouble is he is so deluded about his power to sway opinion in his Master’s favour that he doesn’t realise that the rest of the world can see through his spin. Anybody with half a brain knows Jonso’s tongue knows no boundaries when it comes to licking his boss’s nether regions. As far as this indeginous climb up – climb down circus as I say all the time totenda dzanwa dzaswera ne FIRST BENZI