Zimbabwe to amend foreign ownership law

via Zimbabwe to amend foreign ownership law – finance minister | The Source May 28, 2014

Government will amend its indigenisation law, which requires foreign owned firms to cede 51 percent shares to local blacks, following a Cabinet decision to revise it to become more investor friendly, finance minister Patrick Chinamasa said in Parliament on Wednesday.

Chinamasa did not give specific details on the proposed changes, saying the responsible minister had been tasked to come up with a policy paper.

The proposed changes, which also remove discretionary powers that the current law gives officials, including the minister overseeing the Act, were largely based on President Robert Mugabe’s recent policy pronouncements signaling the need to balance asserting ownership and attracting investment, Chinamasa said during Parliament’s question time.

“Cabinet yesterday took a decision that we should align the investment laws, indigenisation law, the empowerment laws to our polices as pronounced by his Excellency (President Mugabe). To this extent, Cabinet directed the Minister of Youth and Indigenisation to take up this issue with a view to aligning the law to the policy pronouncements and has been asked to start clarifying that position at the (ZANU-PF) Politburo,” he said.

“We recognise that investors who come here are not philanthropists but we are also saying as they come to make money using our money, we want to reap the benefits of exploitation of those assets. Cde Nhema is going to do a paper to align our policy pronouncement to the law or the law to the policy pronouncements,” he said.

Chinamasa said the proposed amendments would seek to make the law clearer after what he described as confusion, misunderstanding and misinterpretations surrounding the policy.

“How do we share the fruits? If you are coming to lay a golden egg, how many eggs are you laying to leave in Zimbabwe?

That is what is going to be the issue,” he said, adding that this will apply to all sectors.

Chinamasa said there was need for transparency with the law to prevent corruption through dealing with various ministers and officials.
“We also hope that underlining the alignment of policy pronouncements to the law, we also expect that we remove as much as possible any discretionary powers that we give to officials which could be a source of corruption,” he said.

He said exploitation of land, minerals would be regulated by the policy.
Mugabe’s government passed the Indigenisation and Economic Empowerment Act in 2008, which seeks to transfer control of foreign-owned firms to local blacks in a move the veteran leader says is meant to address ownership imbalances wrought by colonial rule.

Critics of the policy blame it for Zimbabwe’s stalling economic recovery following a decade in which its economy shrank by as much as 40 percent between 2000-2009.

The economy, which went through a crisis that culminated in hyperinflation that reached 500 billion percent in 2008, rebounded in 2009 after Zimbabwe dumped its inflation-ravaged currency for multiple foreign currencies and Mugabe forged a power-sharing government with the opposition after the previous year’s disputed elections.

At an investment conference in Harare, the government’s investment promotion agency said it was lobbying for the state to give miners 30 years to comply with empowerment regulations, instead of the current five years to attract more foreign direct inflows.

“We are aiming for the fact that (mining) companies should be allowed to recover (after complying with the regulations) because mining is long term so it is not going to recover under the five year demarcated period,” the Zimbabwe Investment Authority chairman, Nigel Chanakira told delegates.

Chanakira said ZIA had received funding from trade bloc, Comesa, to carry out studies on which empowerment models could catapult the country’s economic growth.

COMMENTS

WORDPRESS: 14
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    KIBBS 8 years ago

    Too stupid, too little, too late and too “we told you so”. Pricks!

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    John Thomas 8 years ago

    At this very late stage the main imbalances that need to be restored are the ZANU clepto’s ill gotten gains.

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    What a bunch of Voortrekkers,front pullers,wankers.Too late you bunch of evil morons.Just give our country back.Rhodesia was a country where no child starved,children were educated,men were men and had a job.Look at who are you are,wake up you bunch of lazy cowards.Stand up and fight the evil.Oh sorry you are a bunch of bloody cowards.

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    zanupf fear me 8 years ago

    Serpents snakes

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    Having shown their true, racist, colors they now wish to pretend they have changed. Who will be fooled by this temporary change?

    I don’t think this little bit of nonsense will fool anybody. It is like their absurd 100 year leases, useless and pointless beyond some spin.

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    After the 2013 elections an illiterate war vet from Esigodini Matebeland South went about telling everyone that they would be employers, they would run everything, there would be a lot of money since Biti had gone. Yes MaWar vet this is how you employ, this is how there is a lot of money. Biti is gone. Chinamasa is your very own. Let him turn the leaves into US dollars or just accept that carrying a gun does not render one intelligent enough to run the country. You have condemned your own children for many decades to come by supporting looting, murder and a reactionary dictatorship.

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    Too late guys. No more free money.

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    Jono Austin 8 years ago

    Why can’t the indigenous ‘lay golden eggs’ They’ve had 34 years. Are they incapable? Why is it necessary for outsiders to do it?

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    Saddened 8 years ago

    Just loving this latest development where these clowns are being forced to pull their horns in. Let them carry on fiddling & see where it gets them. They will need to do a lot more climbing down in the months I’m sure!

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    THEY ARE REALLY DESPERATE ,34 YEARS OF WHAT..’?UTTER CONFUSION ,NO END IN SIGHT AND LOTS OF OPPRESSION ON ITS OWN PEOPLE,!

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    Zeezee 8 years ago

    Chinamasa sounds like an idiot.. seems to have contradicted himself!

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    Zim Patriot 8 years ago

    Show me which African country limits investors to 49% of their investment????Lets look at progressive economies…South Africa, Nigeria, Zambia, Uganda, Tanzania, Mocambique? Any thieves amongst them? Are their GDPs growing, are their economies booming, these are our neighbours, blessed with less natural resources than our jewel of a country and yet they are amazing….they are not a basket case with a bunch of thieves and fools …..did I mention greedy thieves and fools? Lets humble ourselves and ask the Lord for His Grace and Mercy to get us out of this mess in our country….