Govt to revisit indigenisation: Mnangagwa

VICE-president Emmerson Mnangagwa says government is in the process of realigning indigenisation laws — widely deemed as a barrier to the much-needed foreign direct investment — as they currently lack clarity and consistency, among other shortcomings.

Elias Mambo/Hazel Ndebele

In an interview with the Zimbabwe Independent this week, Mnangagwa said he has met various stakeholders keen to invest in Zimbabwe but they have raised concerns over inconsistencies in relation to indigenisation — which is nothing new as investors have over the years repeatedly protested with government refusing to budge.

The indigenisation law of 2007 compels all foreign-owned companies to relinquish 51% shares to indigenous Zimbabweans such that they remain with a maximum 49% equity.

Mnangagwa said there was need for clarity and consistency in implementing the programme. “I have said it several times that government will look into the issues to deal with building investor confidence by re-looking our indigenisation policy,” Mnangagwa said.

“I have met various investors who have all expressed interest in investing in the country and their request and concerns remain the same. We are piling pressure on Finance minister Patrick Chinamasa who said government was going to look into such issues so that investors are comfortable and make investments in the country easy.

“Implementation of the indigenisation policy should be sector-based and that is what Chinamasa is seized with at the moment. It is not a one-size-fits all kind of arrangement.”

In a memorandum attached to a letter written to the International Monetary Fund in November last year, Chinamasa conceded clarification would help allay misconceptions on the security of investments and property rights.

“Policy clarity and consistency would significantly improve Zimbabwe’s business climate and attract much-needed capital flows,” wrote Chinamasa.

According to the memo, Indigenisation minister Chris Mushohwe is supposed to communicate the necessary clarification on the laws by way of a Notice in the Government Gazette in terms of Section 5 (4) of the Regulations (2010).

However, a fortnight ago Mushohwe told a local newspaper that he was still in the dark over the responsibilities of his ministry.

Mushohwe could not be reached for comment as his mobile phone constantly went unanswered.

According to the Chamber of Mines, since the enactment of the Indigenisation Act the country has lost at least US$4 billion worth of potential mining revenue in five years due to negative effects of the policy blamed for spooking potential investors.


5 Responses to Govt to revisit indigenisation: Mnangagwa

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  2. Zygy Greg February 28, 2015 at 11:39 pm #

    we would like to invest in Zimbabwe but the problem is someone would claim 51% of our company without putting a single cent. Ridiculous. We are an established company focusing on online trading, check us out on

  3. josphat mugadzaweta March 2, 2015 at 11:06 am #

    trust mnangagwa? has he told what happened during gukurahundi and of late what happened to his three body guards that were found dead? why is it that chombo and mushowhera who are his subordinates in zanu are singing from a very different hymn book? do not you see rwavhi Mugabe’s double standards? I would rather believe what chombo and mushohwera are saying because mboko is also saying the same thing. additionally, despite being parachuted to the VP, I believe that Mugabe is closer to mushohwera who has been his jester at state house for along time and his homeboy chombo. why do you the moza boy Patrick joao also mocking emma? Beware of whites, Mugabe will bamboozle once again! keep you money till we remove these monkeys from office. can you trust a gvt operates on instinct? how can then plan to ban kombis within 10 months? what will happen to the multitudes of stakeholders in that industry? i believe big O wants to eat with them chinese without any disturbances. the corrupt cops better resign now or buy goblins in order to sustain cash flows.

  4. citizen March 5, 2015 at 8:09 am #

    This legislation is racist, it segregates citizens by race, if you’re white you’re foreign.

  5. ndu March 5, 2015 at 5:24 pm #

    Let the investors come and dance with the bedroom coup plottinng gang of 4

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