Zhuwao, Chinamasa agree on indigenisation

HARARE - President Robert Mugabe’s Cabinet ministers yesterday agreed on the implementation of the Indigenisation Act in a move aimed at clarifying the controversial policy to attract foreign investors.

Finance minister Patrick Chinamasa and Indigenisation minister Patrick Zhuwao — who have been at loggerheads over amendments to the law — yesterday buried the hatchet and agreed to work together to grow the country’s moribund economy.

In a departure from his usual combative stance, Zhuwao, who is also Mugabe’s nephew, concurred with Chinamasa that all foreign-owned companies must submit their indigenisation compliance proposals “as soon as possible” in line with the new deadline.

“All companies that have not yet submitted their indigenisation implementation plans as required by the Act should submit their applications through ZIA (Zimbabwe Investment Authority) by the new deadline of  March 31, 2016,” he said.

Enacted in 2008, the indigenisation policy, which forces foreign-owned firms to cede 51 percent shareholding, is largely blamed for low foreign direct investments inflows in the country which stood at $543 million this year compared to $12 billion and $5 billion that went to South Africa and Mozambique.

Speaking at the same occasion, Chinamasa said he will be withdrawing the indigenisation frameworks and guidelines published in an extraordinary government gazette published on December 24, 2015.

“In this matter there has been robust debate and this is how it should be,” he said, adding that the new and improved regulations would be published soon in the government gazette.

The Finance minister said he closed ranks with his junior partner in government to emphasise the need to speak with one voice for economic growth.

Reserve Bank of Zimbabwe governor John Mangudya said the new amendments were flexible and investor-friendly and there was no need for stakeholders to continue complaining.

“With these new amendments we are looking at creating employment to create fiscal space,” he said.  

Mangudya added that there was need for increased production and enhanced local investor participation in the economy.

“Without a high local participation there is no economy to talk about. Foreign participation must complement local participation,” he said.

Comments (4)

It would have helped if the report told us what has changed from Chinamasa's draft.

Gonzo - 5 January 2016

I am pretty sure this is just cheap talk as usual, nothing will change as long as the morons are still in charge.

misty - 5 January 2016

what you want to do u are free to do but i can smell the winds of change."Behold,the days are coming", says the Lord,"that i will make a new covernant with the house of Israel and the house of Judah.Not according to the covernant i made with their fathers in the day that i took them by hand to bring them out of the land of Egypt;which my covernant they break,although i was a husband to them", says the Lord.

blackprophet - 5 January 2016

what you want to do u are free to do but i can smell the winds of change."Behold,the days are coming", says the Lord,"that i will make a new covernant with the house of Israel and the house of Judah.Not according to the covernant i made with their fathers in the day that i took them by hand to bring them out of the land of Egypt;which my covernant they break,although i was a husband to them", says the Lord.

blackprophet - 5 January 2016

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