Zimbabwe’s Nhema hints at relaxed indigenisation approach

via Govt hints at relaxed indigenisation approach | The Source April 14, 2014

The government will balance timeframes guiding the transfer of majority stakes in foreign-owned firms to locals with the new investors’ ability to pay for the shareholding, indigenisation Minister Francis Nhema said on Monday, signalling the intention to relax the controversial policy.

President Robert Mugabe’s ZANU-PF is championing the policy, using a 2008 law that requires all foreign firms, including mines and banks, to have majority control by local blacks.

Analysts say Nhema’s appointment, taking over from the combative Saviour Kasukuwere after the 2013 elections, has seen a marked change in approach to the indigenisation policy. Where Kasukuwere was given to issuing legal instruments and ultimatums, Nhema has quietly engaged industry.

Nhema told The Source in interview that he had requested mining companies to include the empowerment component, not just equity, in their plans in order to fully comply with the law.

“We have agreed on the principles and they are now finalising on it. We didn’t give them a timeline, we said they must go and make proposals though we gave them guidelines,” he said.

Nhema said the miners were expected to include an empowerment element where they outlined how they would be involved in the skills training of women and the youth, support for vocational training, skills transfer and equipping communities with necessary facilities and infrastructure.

He said Zimplats, the country’s biggest mining firm 87 percent controlled by world producer number two Impala Platinum, had now completed paying its $10 million to the Community Share Ownership Trust while Mimosa, which had so far paid $4,5 million, would make an additional payment this month.

The banks had also been asked to submit proposals on how they would achieve the 51 percent.

“We did not give them a timeframe because it also involves the indigenous people whether they will be able to meet their obligation in terms of paying for the capital requirement,” he said.

“The danger of giving timetables is that you may find that the indigenous players are not yet ready to pay the 51 percent.”

He said the indigenous people were required to prove that they had money to buy the 51 percent or to table plans on how they were going to fundraise for the equity.

Nhema said one bank had submitted its plan but was waiting for them to finalise the process before he could reveal the name.

On the reserved services sector, Nhema said new licences would only be issued to indigenous people while those non-indigenous people that already have licences must apply to the ministry indicating time of compliance.

COMMENTS

WORDPRESS: 9
  • comment-avatar
    John Thomas 6 years ago

    Nhema is minister of racism. Indigenisation and reserved sectors are plain and simple racism. Zimbabwe has a racist government. Zimbabwe is a racist state. There are no arguments that can change the truth of this. All that remains now is for the voices saying racism is ok so long as it is black against white to tune up.

    The truth is out. Freedom and equality was never on the cards.

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      Jono Austin 6 years ago

      We were lead to believe that the ‘liberation struggle’ was about fighting the system, Turns out it was about destroying the whites. Turns out the whites had every reason for fighting a war when they knew it was about survival. Zimbabwe is a through on through racist state. That is why it has been destroyed and there is no buy in by the international community-they don’t agree with that twisted ideology in the 21st century. That is the tragedy-Mugabe and his kin are locked into a ‘past sell by date’ mindset that has no traction in the current era.

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        I have to say Jono that I have come across rascists on both sides. I think for me one of the big lessons I have learned is not to paint with a broad brush. There are wonderful non racial blacks and there are wonderful non racial whites. ZPF is full of bitter people who have played the race card in a very evil way but then they have also played the tribal card in the same evil way. But then they have played the political opposition card in the same way. ZPF policies are evil in God’s eyes. They seek to divide, to bring division in their nation and to destroy. What the so called Christians in ZPF are doing is a bit of a mystery except it is suffice to say they sup with the devil.

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          Jono Austin 6 years ago

          NBS I will agree that there are racists on both sides, however I didn’t use a broad brush unless using it to describe zanu, Mugabe and his ilk. Mugabe is no Mandela who strived to bring his nation together-quite the contrary.

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    When did Nhema and Mzembi begin to emerge from their catatonic state and even begin to see a bit of common sense.

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    munzwa 6 years ago

    A bit of common sense, NBS, but still trying to provide horses for courses which smacks of selective use of the laws…

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    Roving Ambassador 6 years ago

    That ministry is an instrument for Zanu to extort funds from companies.
    if you pay your protection fee nothing happens.
    Business have been conniving with the regime for so long at our expense. Its high time they woke up and stood with us in our fight for regime change.
    Lets isolate Zanu .

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    Johnson@yahoo.com 6 years ago

    nationals must benefit first in the economy brfore Nigerians etc. However the policy should be both sane (not abnormal) and consistent. Otherwise flip flopping leads to investor skepticism

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