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Participation of locals and protection of investors' right
National Association of Non-Governmental Organisations in Zimbabwe (NANGO)
June 30, 2012

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Introduction

This study critically analysis the implementation of the Indigenization and Empowerment Act (Chapter 14:33) in the mining sector with particular focus on how the participation of locals can be enhanced in the sector and how investors' rights can be guaranteed. The paper acknowledges the critical role of the mining sector in the economy in terms of its contribution to national output, exports and employment.

Background

The mining sector consists of around 40 major mining companies. Currently state, state-owned enterprises and indigenous people hold mineral rights totaling 50 percent to 60 percent of total mineral rights. Since the policy of indigenization and economic empowerment in Zimbabwe was promulgated when the Indigenization and Empowerment Act (Chapter 14:33) was first introduced as a Bill in October 2007, and subsequently passed as an Act of Parliament in April 2008 there have been numerous amendments to the Statutory Instruments (SIs) and policy pronouncements by the responsible Minister in an effort to try and implement the Act. Since April 2008 when IEE was passed as an Act of Parliament to date, it is evident that there has been general lack of coordination within government on the implementation of the IEE, particularly as it relates to the mining sector. Although the political environment in which the IEE Act was enacted was unique to Zimbabwe, the use of legislation and specific policy instruments to engender the economic empowerment of indigenous populations and/or restrict foreign ownership is not unique. On the contrary, it is quite common place throughout the world. Examples from Angola, Zambia, South Africa, Ghana, Indonesia and other countries testify to this fact.

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