Govt won’t grab foreign-owned companies’ shares: Chinamasa

By The NewsDay | Apr. 23, 2014 | 2 Min read

FINANCE minister Patrick Chinamasa yesterday emphasised that the government would not grab shares or impose investors in foreign-owned companies.

Tarisai Tahungai

Speaking at a Press briefing where Afrasia Zimbabwe Holdings Limited announced the injection of fresh capital amounting to $20 million, Chinamasa said the indigenisation policy would not be used to unfairly disadvantage foreign companies.

He said the companies should partner investors of their choice and negotiate the right price for their shares.

“What is sometimes said, you bring in your $20 million and we take 51% of that, it’s nonsense,” Chinamasa said.

“We have said it and we will not do it. What we have said is we want to encourage local participation. They will do it on the basis of a framework and also that they pick up a partner and also they decide the price.

“That I think needs to be emphasised again and again. We are not going to get any 51% of anyone’s money, it’s not the policy.”

The development would see ABL increasing its shareholding in Afrasia Zimbabwe to 62,5% from 36%.

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The capital injection is made up of $10 million from ABL and another $10 million from the unnamed investor.

Chinamasa said the development came after a meeting which was held in April last year where it was decided to increase capital injection.

“I am very aware that with this increased injection of capital by foreign players, it will lead to a dilution of local participation shareholding and I am fully aware of that,” he said. “Where l stand right now I am quite comfortable with the dilution, it increases the volume of credit to the productive sector at a time when our own people have no capacity to buy the equity. So it’s going to be an incremental issue with respect to increase local participation.”

However, Chinamasa said government has a more comprehensive plan to increase local participation in various companies.