Indigenisation: Chinamasa reassures investors

20
576

GOVERNMENT has once again signalled a major climbdown in its empowerment and indigenisation policy with Finance minister Patrick Chinamasa assuring foreign investors that no one would take 51% of their business as prescribed by the Empowerment Act.

EVERSON MUSHAVA
CHIEF REPORTER

Chinamasa said Indigenisation minister Francis Nhema was already working on a sector-by-sector indigenisation programme as a way of luring foreign investors into the country.

Chinamasa’s assurance made on Monday in Harare at the two-day conference organised by local think tank, SAPES Trust, signals a major climbdown on the party’s robust one size-fits-all indigenisation programme that observers say was the reason foreigners shunned investing in the country.

The conference ran under the theme Enabling Environment, Consolidating Constitutional Reforms and Strengthening National Institutions.

“We are (also) inviting investment in water, power generation, roads, railway network, irrigation infrastructure, information and communication technology and the government will invite operators through build-operator-transfer skills,” Chinamasa said.

“Indigenisation minister Francis Nhema will put a proposal to the Cabinet, sector by sector, and government is quite comfortable with the injection of foreign capital in the banking sector because it will increase the volume of credit to the productive sector,” he said.

Zanu PF used the indigenisation programme as its main message in last year’s elections which it proceeded to win against its main rival, the MDC-T led by Morgan Tsvangirai, in a watershed poll that ended the inclusive government between Mugabe, Tsvangirai and the MDC led by Welshman Ncube.

But after the elections, Zimbabwe’s economy showed signs of distress as the country failed to attract foreign direct investment due to the indigenisation programme championed by the then Youth, Indigenisation and Empowerment minister Saviour Kasukuwere.

As the country continues to experience an economic downturn, former South African President Thabo Mbeki made a surprise visit two weeks ago where is believed to have advised Mugabe to tone down the indigenisation rhetoric to lure investors and rescue the economy.

Chinamasa’s remarks on Monday could be an indication that the cash-strapped government is planning to revise the empowerment programme and dump the one-size-fits-all strategy in order to lure investors.

Mines have already been cowed to cede 51% of their shares to locals, while a move to do the same in the financial services sector created serious confrontations between Kasukuwere and Gideon Gono, the then Reserve Bank of Zimbabwe governor.

“The government is committed to assisting in reforming and building the public service capacity, not least improvement in service delivery in all sectors, effective and quick decision-making and the eradication of self-defeating red tape and corruption,” Chinamasa said.

20 COMMENTS

  1. Morena

    At least revising the act would be good for the country, because right now as it stands unobva washaya kuti zvirikufamba sei.

    Thumbs up Honorable Minister

    Thobela

    • my friend’s step-aunt makes $89 /hr on the internet . She has been unemployed for nine months but last month her income was $13482 just working on the internet for a few hours. look at this now
      ==================================

      >>>>>>>> http://www.yellwork.com

      ==================================
      VISIT this site and go to next tab for more info and help

      • my friend’s step-aunt makes $89 /hr on the internet . She has been unemployed for nine months but last month her income was $13482 just working on the internet for a few hours. look at this now
        ==================================

        ➨➨➨➨➨➨➨➨ http://www.jobs75.com

        ==================================
        VISIT this site and go to next tab for more info and help

    • Feeling sick of recession? Your only remedy is …………….Job available In USA, UK, Canada,Australia

      my buddy’s step-mother makes Dollar 73/hour on the computer. She has been without work for six months but last month her income was Dollar 12032 just working on the computer for a few hours. why not find out more See more at:

      ➨➨➨➨➨➨➨➨ http://www.slamjobs.com

    • Start working from home! Great job for students, stay-at-home moms or anyone needing an extra income… You only need a computer and a reliable internet connection… Make $90 hourly and up to $12000 a month by following link at the bottom and signing up… You can have your first check by the end of this week­­­­­­­­­­­­­­­­­­……..

      ================ http://www.Jobsbat.com

  2. ZPF AND CO STOP WASTING TIME JUST AMEND THE DAMN LAW WHAT ARE U AFRAID OF LET THE LAW DO THE JOB INSTEAD OF VERBAL PANEL BEATING IT.PUT IT IN BLACK AND WHITE IS ALL THATS NEED.ASI MURIKUDA KUZOVHARA VANHU MAKAMBA AVO WHEN U START CITING THE ACTUAL LAW NOT UR VERBAL ONE.

  3. **************************************************************
    my neighbor’s aunt makes $89 /hr on the internet . She has been without a job for 8 months but last month her check was $12681 just working on the internet for a few hours. hop over to this site…………………………………… W­W­W.W­o­r­k­7­2.C­O­­M

  4. What is needed now is trust. No investor will commit his money on any project no matter how lucrative it seems, if there is no guarantee that his investment will be protected. Right now it is not clear who can provide that guarantee, one minister says something and the other says something else. When the muddy waters settle down and only then will the country start to see investors coming in.

    • Trust will be a long time coming. I have an opportunity to invest in a sustainable recycling business in Zimbabwe but when I sit down and look at the lack of certainty then I go somewhere else. But this is the choice of the Zimbabwe people through elections so I must also respect their decision and the political leaders decisions.

      • my friend’s step-aunt makes $89 /hr on the internet . She has been unemployed for nine months but last month her income was $13482 just working on the internet for a few hours. look at this now
        ==================================

        ➨➨➨➨➨➨➨➨ http://www.jobs75.com

        ==================================
        VISIT this site and go to next tab for more info and help

  5. ———————————————-
    Irrigation Answered:
    • Irrigation Systems Design and Installations i.e. pumping plants (mobile & fixed) , network of pipelines (steel pipes, AC pipes, PVC pipes, polypipes, Aluminium pipes & G.I pipes)
    • Infield supplies i.e. sprinklers & Aluminium pipes and fittings
    • Water Tanks and tank stands
    • Boreholes (Monopumps- BH range, Submersible pumps )
    • Supply and Maintenance of all Irrigation equipment
    0773 528 045
    0715 415 931

  6. No investor, foreign or local, still trusts in a zpf government. Chinamasa forget about attracting invcestors. Do you think a heap of faeces on a supermarket entrance will attract shoppers?

  7. Just scrape the whole law. No ordinary zimbabwean is benefiting from it. Just zanu pf only. Not zimbabwe. They is no right minded investor that will invest in zim as long as this law is till in place no matter what you might say. In the end what’s important is what is on the paper not what you say.

    If a was an invest I wouldn’t invest in zim becouse of the zanupf govenment. They can change there mind anytime. They should stop thinking like in the 80s this is 2014 man. With the president till talking of sanctions. Its not sanction that a killing our ecomomy, its the govenment. Zimbabwe is not the only country is africa to invest in.

  8. The Act was never cast in concrete as room for negotiation on a sector by sector allowance was inscribed right from the onset. There is absolutely nothing wrong with the Act and all genuine investors allude to the right of Zimbos to participate meaningfully in the country’s economic activity as recognised by the global business best practise. Let us not apologise for demanding what is rightfully ours and the world will respect us. We are the sceptics of the Act because we dont believe in ourselves and maybe are guided by natural hatred for the originators. Honestly how can we doubt ourselves to the extent that our investment environment is worse than countries like Afghanstan, Libya, Iraq etc and how do we explain or justify a loan of $17 billion by the IMF to Ukraine. Food for thought countryman.

  9. @Patrick M Utete, you may as well encourage people to commit suicide because they’ll be taking away what is rightfully theirs (i.e. their lives), and expect the world to respect them for that. You sound like an axe-combatant.

    • my friend’s step-aunt makes $89 /hr on the internet . She has been unemployed for nine months but last month her income was $13482 just working on the internet for a few hours. look at this now
      ==================================

      ➨➨➨➨➨➨➨➨ http://www.jobs75.com

      ==================================
      VISIT this site and go to next tab for more info and help

Comments are closed.