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Govt
further softens indigenisation
Herbert Moyo, The Independent (Zimbabwe)
November 15, 2013
http://www.theindependent.co.zw/2013/11/15/govt-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.
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.
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