Is ZANU PF backtracking on indigenisation law?

via Is ZANU PF backtracking on indigenisation law? | SW Radio Africa by Tichaona Sibanda on Thursday, April 24, 2014

There appears to be attempts by the ruling ZANU PF party to soften its stance on the controversial indigenisation law that compels foreign owned firms to transfer a controlling shareholding to locals.

The law, enacted in 2008, has been criticised as an impediment in attracting much needed foreign direct investment.

Many analysts believe the law that requires all foreign firms, including mines and banks, to have majority control by local blacks has helped contribute to the present dire economic crisis in the country.

But last week Friday President Robert Mugabe in his Independence Day speech appeared to backtrack, saying the indigenisation program had been misunderstood.

He said not all foreign companies were targeted for takeovers disclosing there had been some confusion in the implementation of the program. Mugabe also ruled out a one-size-fits-all indigenisation approach, saying only companies utilising the country’s natural resources will be required to immediately turn over majority stakes to indigenous Zimbabweans.

This is a departure from the aggressive rhetoric adopted and normally used by former Indigenisation Minister Savior Kasukuwere.

Lately two moderates in Mugabe’s cabinet, Tourism and Indigenisation Ministers Walter Mzembi and Francis Nhema, cautioned against the law, warning of dire consequences to the economy.

Nhema has, since taking over from Kasukuwere at the indigenisation ministry, adopted a softer approach and indicated his willingness to relax the policy.

Speaking to our correspondent in Bulawayo on Wednesday, the US Ambassador to Zimbabwe, Bruce Wharton, said the policy on indigenisation has not been consistent.

He emphasised that this creates a lot of uncertainty and lack of confidence, adding that if the rules change all the time it breeds concern and reluctance among investors.

 

COMMENTS

WORDPRESS: 12
  • comment-avatar
    Little Dorrit 8 years ago

    The legislation has to be REPEALED or AMENDED. A statement in the press does not amend or repeal the legislation.

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      Mseyamwa 8 years ago

      Very right. If it has not been officially repealed or ammended it is still effective. In the first place, if the law could be misinterpreted for three years by one of its makers without Mugabe raising a finger to him, was it really a misinterpretation or the old goon wants us to believe he hasn’t seen a new light, since they are forever labelling others ‘flipfloppers’.

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      excellent observation. The very idea that the drafters and advocates of the perforated piece of wood that the indigenisation Act is, under the supervision of his excellency “misunderstood” their creation is reprehensible and speaks volumes of the ilk of people we call our leaders in zimbabwe.

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    John Thomas 8 years ago

    ZANU needs to backtrack on this and almost everything else they have done. The pressure on them has not even begun. The period immediately in front of us is going to make them eat each and every one of their stupidities. They are in no position to resist having bankrupted the country. They have put nothing aside for a rainy day. The tide of history is now moving inexorably against them and all that they stand for. It is a pity that Mugabe is unlikely to live long enough to see how low they become.

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    Mseyamwa 8 years ago

    A good law must be easily understood by the people it affects, and must be fair and just. People like Kasukuwere whom I believe brought the bill to parliament, other ministers and MPs should be in a position to explain the law to laymen as they would have played a huge role in its enactment. How else would it have been debated in parliament if these people did not understand it, themselves?

    The rushed, half-backed, populist bills forced into law by the rulers always cause confusion and provide gapping loopholes through which they also intend to defraud the population. How many businesses and individuals have already lost money in bribes and unnecessary red tape or been harassed by party touts over this bill in the last three years while you celebrated it. Why did you not refuse to sign it into law befote it was clear and why did you keep quiet on the misinterpretation through 3 years of your peoples’ abuse mr president?

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      Roving Ambassador 8 years ago

      Where was the MDC when all this was happening? ZANU stooges. A new chapter in Zimbabwe politics is what we need.
      All the zanufied parties must disappear. We need a new beginning.
      Can the real patriots come forward please.
      The walls of Babylon are coming down.

      • comment-avatar

        Iwe ibvapo iwe… Waka to dhakwa…. wqhy are u finger pointing MDC. Ko iwe waivepi… Zigudo remunhu…Akaisa that Policy nditsvangirai here… Nxaaaaa Fool

  • comment-avatar

    As JT says ZPF needs to back track on a whole lot of things they have done. This nation will continue to fall into the pit until they do. What do these ZPF leaders think of in the quietness of the night and who will have the guts to stand up and say, “We have taken a wrong road and we must now turn and begin to do the right thing?” Is there even one person that thinks that way? What do they think of when they go to ‘church’ on Sunday and to other meetings mid week? What do they feel when they hold the bible in their hands? Do they even know what that word says? Where is the fruit of that? A good start would be to put a total stop to ever land upheavel straight away, to start a nationwide coming together, to apologise for the evil, ugly, destructive words their leaders and some others continuously speak, to go back to the drawing board with the nation and the wider community over the indiginisation act, to choose a successor with a bit of love and concern for his/her nation and a tad of conscience before God for our sin that has brought judgment down upon us. is there such a person in ZPF. If so I encourage you to stand up today for if someone does not God is going to hold ZPF responsible for the utter destruction of His nation alongside a church that needs to wake up and begin to repent.

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    Pakukutu 8 years ago

    From 1985, after Botha insisted in his Rubicorn speech that apartheid was to stay, corporates started leaving South Africa. Zimbabwe was going to be a natural destination. Then the Gukurahundi stories started filtering and in 1987 Zim became a de facto one party state with Mugabe anointing himself ‘a disciple of the one party system’. We lost out on a massive FDI opportunity.
    Will we look back at our history from 2000 as again a massive lost opportunity with things we are going to reverse. Noone in ZANU learns anything. Do they care?

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    Folded Arms 8 years ago

    Folded Arms thinks they need to backtrack back into their mothers wombs. These so called leaders have achieved nothing and will achieve nothing. Just useless policies which do not solve any of the countries mounting problems but instead exacerbate them. They think they will live forever and rule forever. Time is its own master.

  • comment-avatar

    Mugabe and zanu would not invest in their own country , they want foreigners to risk investing in an unlawful corrupt country.shame shame shame you keep your dilapidated Zimbabwe .

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    chimusoro 8 years ago

    Companies are making a loss! Not a good time to loot them.