Govt further softens indigenisation

FINANCE minister Patrick Chinamasa says government will adopt a flexible approach in the implementation of the indigenisation policy, which will see foreign investors in crucial sectors such as banking, manufacturing and infrastructural development being spared the requirement of ceding 51% shareholding to the state or indigenous Zimbabweans.

By Herbert Moyo

This is a major climb-down from former Indigenisation minister, Saviour Kasukuwere’s combative approach which forced all foreign-owned companies, including banks, with a net asset value of US$ 500 000 or more to cede 51% shareholding.

During a briefing to Western diplomats on the government’s recently-launched Zimbabwe Agenda for Sustainable Socio-Economic Transformation (Zim Asset), Chinamasa admitted that the lack of clarity around the policy which was the cornerstone of ruling party Zanu PF’s election campaign for the July 31 polls, which it won, had created uncertainty that may be hindering the country’s chances of attracting foreign investment.

“We need to be very clear about indigenisation and in the coming months (Indigenisation minister Francis) Nhema will be clarifying sector by sector what the policy means,” said Chinamasa, who added that it might even be necessary to change the name due to the negative perceptions around it.

“There are examples like in power generation where we will not demand 51% from the investor. It is the same with roads and railways. Even with manufacturing you cannot say to Coca Cola I now own your business.”

However, he said there are other areas such as mining where the 51% policy may be implemented because the country needs to benefit fully from depleting non-renewable resources. Chinamasa’s remarks came after concerns raised by the Norwegian and Swiss diplomats that lack of clarity around the implementation of the policy was breeding uncertainty among potential and international investors.

He said indigenisation was necessary to create a platform for locals to participate as stakeholders in the Zimbabwean economy having been excluded by the colonial system of pre-Independence Rhodesian era.

9 thoughts on “Govt further softens indigenisation”

  1. Josh says:

    So u hav jus woken up Patrick?? How much damage has that program caused and how much suffering has it caused?? When the MDC was in Govt yo party conveniently used that program to derail programs and progress & u never saw sense in what they were complaining about? Now you realize how destructive that program is and you also complain about diamond revenue not reaching the treasury!! Which planet are you from???

    1. lovemore says:

      @Josh. That is the mistake most Zimbos make. They think that ZPF is obliviuos of the damage their policies make. The damage to the country is secondary to power and control. Real psychopaths if you ask me. Their main concern during the GNU was to look at ways of apportioning blame to the MDC on all government business. They blamed MDC for not funding agriculture as if they were not part of the government. The irony was that they would boast that Chamatama and MDC is not in control and will never be (read Nathaniel Manheru columns of the time) yet at the same blamed them for failures. The aggressive indeginisation policy was done so that there will be little success in order for the GNU to be blamed for failures. If the GNU had been a success it would have shown all and sundry that for sure it is possible to work around “sanctions”. They hope that with a softer stance they may be able to show that them only can make things happen. I think the budget delay has been due to the Zisco deal (They couldnt allow the deal to go through during the GNU for the same reasons given above. They most probably want to “announce” something major in that budget speech, it maight not be Zisco but i think something major is delaying the budget other than “wide consultations”.

  2. mapungubwe dundilabazwele says:

    I have always liked Mr P. Chinamasa because he is a great thinker.

    1. PADHIZA says:

      He is like that but he is being forced by circumstances beyond his control.

      1. PADHIZA says:

        He is not like that but he is being forced by circumstances beyond his control.

  3. Temba Peter Mliswa illegally seized Benbar on 18 December 2009 under the guise of Indigenisation. He deliberately and knowingly committed a crime. He said he was the “Chairman of a Banda trust”. No trust existed as at February 2010. He looted, destroyed company documents, removed company computers, opened a Premier bank account without permission and against company law, took cash from customers, had secret meetings at 21 Helensvale road to “appoint a new board” when he had no right to do so! Who can forget the picture on 2 July in the Herald where his powerful relative as well as lawyer Gerald Mlotshwa who was heavily involved in the whole scheme came to court to rescue him. Temba has been rewarded by becoming an MP – what an appaling example as representative to “improve” the lives of people when he is responsible for so much hardship and misery. Temba’s very actions are the definition of crimes against humanity as defined by ICC and the Rome Convention . To paraphrase Shakespeare “hypocrocy thy name is Temba Ma-THIEFWA”.
    He should be compared to MacBeth– someone who stole that which was not his; from the woods of Luton he will get what he deserves. There is no British education he likes to boast about – he was kicked out so simply awarded himself an honours degree and put it on Salt lake letterheads .Besides he hates the British so much despite his parents living there and getting benefits as well as them flying back to Zimbabwe to beg the President for a pardon for their son!. He obviously has a lot to be grateful for because of British intervention.

  4. Investor says:

    Zimbos you never cease to amaze. Damage has already been done do you think that will change how investors see you? Forget about it because we know once things are in order you will change again. And for sure we know come 2016 you will revert to that same rhetoric for you to win the 2018 elections. We are not fools. Keep your Zimbabwe and we will keep our money; its as simple as that. You believe in your people so we are giving them a chance to operate 100% of investments in Zimbabwe. We are not being rude we are only being fair. We don’t want to be seen as people taking a country’s resources; NO; they are yours and will remain yours.

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  6. Mabwe says:

    I just thought to share the words below from Glencore Xstrata CEO Ivan Glasenburg which are in line with the policy government is pursuing.

    Now we are getting some mining executives who are willing to accept government as a free carry shareholder. Look at the statement below from Glencore Xstrata CEO Ivan Glasenberg. Are these not the type of businessmen that Zimbabwean government should be courting? Among other commodities Glencore Xstrata deals with coal, a resoucrce that Zimbabwe has in abundance.

    “I don’t mind if a government wants a 10%, 20% or 30% free carry and royalties and taxes. As long as you know upfront what the rules are, it’s acceptable,” South African-born GlencoreXstrata CEO Ivan Glasenberg said. (sourced from miningweeklydotcom)

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