Zimbabwe won’t grab foreign-owned companies’ shares: Chinamasa [!?]

via Govt won’t grab foreign-owned companies’ shares: Chinamasa – NewsDay Zimbabwe April 23, 2014 by Tarisai Tahungai

FINANCE minister Patrick Chinamasa yesterday emphasised that the government would not grab shares or impose investors in foreign-owned companies.

Speaking at a Press briefing where Afrasia Zimbabwe Holdings Limited announced the injection of fresh capital amounting to
$20 million, Chinamasa said the indigenisation policy would not be used to unfairly disadvantage foreign companies.

He said the companies should partner investors of their choice and negotiate the right price for their shares.

“What is sometimes said, you bring in your $20 million and we take 51% of that, it’s nonsense,” Chinamasa said.

“We have said it and we will not do it. What we have said is we want to encourage local participation. They will do it on the basis of a framework and also that they pick up a partner and also they decide the price.

“That I think needs to be emphasised again and again. We are not going to get any 51% of anyone’s money, it’s not the policy.”

The development would see ABL increasing its shareholding in Afrasia Zimbabwe to  62,5% from 36%.

The capital injection is made up of $10 million from ABL and another  $10 million from the unnamed investor.

Chinamasa said the development came after a meeting which was held in April  last year where it was decided to increase capital injection.

“I am very aware that with this increased injection of capital by foreign players, it will lead to a dilution of local participation shareholding and I am fully aware of that,” he said. “Where l stand right now I am quite comfortable with the dilution, it increases the volume of credit to the productive sector at a time when our own people have no capacity to buy the equity. So it’s going to be an incremental issue with respect to increase local participation.”

However, Chinamasa said government has a more comprehensive plan to increase local participation in various companies.

 

COMMENTS

WORDPRESS: 7
  • comment-avatar
    Jono Austin 8 years ago

    Ja sure. I think nothing more needs be said.

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    zanu and a plan, isn’t that an oxymoron? Unless it is theft and destruction.

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    Mseyamwa 8 years ago

    If thst eas the case from the onset, there would never have been that much resistance. And why would Kasukuwere read riot acts upon foreign companies and threaten them with license withdrawals eif the ceding of shares was not forced. The multi-tongued party will is entangling itself in a mesh of confusion and investors will yet weigh who speaks the truth between the ministers of the same government. In the meantime, they will not be waiting for Zim to put its house in order, they will be going elsewhere.

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    Chaka 8 years ago

    Foreign companies are aware, as well as every Zimbabwean that this is trying to let sleeping dogs lie. No one will ever be deceived.

  • comment-avatar
    Mlimo 8 years ago

    No one is stupid enough to invest there promises today lies tomorrow theft of your investment the next.

  • comment-avatar
    Petal 8 years ago

    just waitng to pounce on the companies BECAUSE OF THEIR GREED LEOPARDS NEVER CHANGE THEIR SPOTS!!!

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    Kasukuwere made a deal with the platinum people that was found not to be the gift they thought it was. Mugabe reneged on the agreement stating the shares would not be paid for as his view was the ores unexplored was his investment. There is no thought to paying for anything – Zanu PF never has had any thought of paying for what they can steal