Zhuwao eats humble pie

HARARE - Indigenisation minister Patrick Zhuwao yesterday accepted that he “misinterpreted” aspects of the indigenisation policy, adding he respectfully accepted President Robert Mugabe’s policy statement as the new “directive” his ministry would take.

Mugabe dramatically revised rules compelling foreign firms to transfer majority control to local blacks after acrimony between Finance minister Patrick Chinamasa and Zhuwao over whether or not foreign-owned players in the banking sector had complied with the indigenisation and economic empowerment law.

Chinamasa, upholding a public statement by Reserve Bank of Zimbabwe governor, John Mangudya,  published a statement saying foreign-owned banks were compliant, prompting the Indigenisation minister to promptly and emphatically reject the Finance minister’s statement.

Mugabe then stepped in through an April 11 presidential statement, backing Chinamasa and reprimanding Zhuwao.

“As I take direction, it’s quite possible that I can misinterpret certain things and I must be able to listen to my boss when my boss explains what I have misinterpreted,” Zhuwao admitted at a news conference yesterday.

He said Mugabe’s “pronouncement has helped” pacify edgy investors.

Referring to the policy inconsistency from his ministers, Mugabe said:

“This has caused confusion among Zimbabwean, the business community, current and potential investors, thereby undermining market confidence.

“It is therefore fit and proper that I provide clarification on this very vital national policy, for the guidance of government ministries, the business community and current and would-be foreign investors.”

Government, which required foreign firms with assets worth $500 000 to cede 51 percent of their shares to black Zimbabweans within five years, is now proposing to exchange the 51 percent shareholding threshold for value in the form of wages, taxation, community ownership schemes and procurement programmes.

The regulations will no longer

apply to existing businesses in the natural resources sector where government does not have 51 percent ownership.

For banks, Mugabe’s statement did not mention 51 percent Zimbabwean ownership at all, but only implored banks “to make their contributions by way of financing facilities for key economic sectors and projects, employee share ownership schemes, linkage programmes and such other financial empowerment facilities as may be introduced by the Reserve Bank.”

Comments (7)

Why not resign

Gomba - 23 April 2016

such are the results of the ill-advised chants of a nepointed nephew who tries to run a ministry as if its his uncle's herd of nagana infected beasts! as if the wild rants are not enough, the uncle tune in with discord much to the embarassment of the zealot nephew. who is foolish to patronise such an orchestra where band members contradict on stage? which investor will wire FDI into an economy being manned by political maniacs who bicker without restraint. there is nothing to speculate in a dynasty whose superintendents have made it clear & beyond doubt that no foreigner is welcome to invest. what's left is a famine of ideology as no-one else is allowed express reason or raise a point to advise on the ills of the hot headedness! even chinamasa will receive a verbal shellacking for attempting to conceal the ignorance of the ludicrous nephew. it only takes yemudanga (blood relative) to heed the call. can that be a country??!

SaManyika Chaiye - 23 April 2016

Ganja causes hallucinations sometimes,. Try reasoning without it and quantify the results

Mukanya - 23 April 2016

the nephew is a harshish addict!

SaManyika Chaiye - 23 April 2016

@samanyika,lets agree that the policy statement is not necessarily a correct interpretation of the law,yu may hate the young minister but the problem lies with the law thats vague,and a policy is always surbodinate to the law no matter how unpalateble that law is,yu in the british sponsored party will agree with me

truth - 23 April 2016

reminds me of idi amini who used to boast he runs the country the way he feels he wants mugabe and hes family are running the country the way they want.mugabe sensing danger of the collapsing economy decided to make a u turn on this ill thought indegenisation policy

simbarashe - 23 April 2016

@truth; agreed that the law is vague and thanks for that humble admission! the trillion $ question is, why is this piece of legislation so vague that it puts an old uncle and his rasta nephew on a collision course? simple answer for me to walk away with the trillion is, zanu crafted the law without indepth consultation, a few blacklisted lawyers in zanu crafted the law overnight and gave it to parliament were the majority of rigged in zanu ministers seconded the motion to pass the law without reading a single section. in short the law was crafted to spite foreign investors and that seem to be backfiring now. such is how draconian that law is. so if there is any part that is vague, the vagueness is deliberate because the law was passed with a vendetta.

SaManyika Chaiye - 25 April 2016

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