GOVERNMENT has withdrawn indigenous and empowerment regulations barely a week after gazetting far reaching changes to the policy widely seen as an anathema to foreign direct investment as confusion continues to dog the controversial policy.
Zimbabwe in 2008 enacted the indigenisation and empowerment law, which compels foreign investors to sell at 51% stakes to locals.
Critics have in the past criticised the piece of legislation for spooking foreign direct investment in an economy badly in need of fresh funding.
Addressing a joint press briefing with Finance minister Patrick Chinamasa and Reserve Bank governor John Mangudya, Indigenisation minister Patrick Zhuwao said the new Frameworks, Procedures and Guidelines for Implementing the Act were meant to give clarity following weeks of ‘robust’ debate.
“We have agreed on the Frameworks, Procedures and Guidelines for Implementing the Act and as we move forward emphasis is now on implementation of the Indigenisation Law starting with the submission of the indigenisation implementation plans which every affected company must submit with immediate effect but no later than March 31,” said Zhuwao.
Chinamasa said the new frameworks would replace those he gazetted on December 24 adding that they were now a better document, which he was prepared to land his weight.
“That’s why I am here,” he said.
“In this matter there has been robust debate… following this robust debate we have now come out with a much improved product, which is very conducive for investment. So I want us to consider the frameworks as a milestone in the turnaround of our economy,” said Chinamasa.
He, however, declined to shed light on the proposed changes which seemed immaterial.-Staff Writer