Mugabe settles indigenisation row, burns Zhuwao’s fingers

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Youth minister Patrick Zhuwao

PRESIDENT Robert Mugabe yesterday came out to clarify the government’s position on the indigenisation policy, and settled the dispute between Finance minister, Patrick Chinamasa and his Indigenisation counterpart Patrick Zhuwao.

BY RICHARD CHIDZA

Finance minister Patrick Chinamasa
Finance minister Patrick Chinamasa

In a statement last night, Mugabe made it clear that Zhuwao’s role was merely to co-ordinate implementation of the legislation by line ministers.

The veteran leader admitted the policy has poisoned the country’s business environment.

“This has caused confusion among Zimbabweans, the business community, current and potential investors, thereby, undermining market confidence. The situation has also led to increase in cost of doing business, thus, further weakening the country’s economic competitiveness,” Mugabe said.

He said in the resource sector, government had a sacrosanct duty to ensure they were exploited in a manner that safeguards current and future generations.

“As such, in terms of the policy government and/or its designated entities, will hold a 51% stake in business in natural resources sector, with the remaining 49% belonging to partnering investor(s). The need for investors in the sector to comply with the prescribed indigenisation obligations is, therefore, non-negotiable,” Mugabe said.

He said as far as existing businesses, in which government does not have 51% ownership, “compliance should be through ensuring that the local content retained in Zimbabwe by such businesses is not less than 75% of gross value of exploited resources”.

“Local content here refers to the value retained in Zimbabwe in the form of wages, salaries, taxation, community share ownership schemes and other activities such as procurement and linkage programmes,” Mugabe said.

Zhuwao last month issued a decree ordering compliance by foreign-owned companies or risk losing their operating licences, resulting in near panic in the economy.

Mugabe literally called on Zhuwao to keep his hands off, the financial services sector.

“The banking sector shall continue to be under the auspices of the Banking Act, which is regulated by the Reserve Bank of Zimbabwe and the insurance sector under the auspices of the Provident and Insurance Act,” he said.

“This policy position is essential for the promotion of financial sector stability, confidence and financial inclusion. These institutions will, nonetheless, be expected to make their contributions by way of financing facilities for key economic sectors and projects, employee share ownership schemes, linkage programme and such other financial empowerment facilities as maybe introduced by the RBZ.”

Mugabe added that sector-based empowerment credits or quotas would be granted “to reflect the contribution of investors in such businesses to national development efforts” to be achieved through negotiation “involving line ministries and private investors”.

23 COMMENTS

    • Poor Patrick, he thought he was pleasing his uncle by calling Chinamasa names. The unpredictable uncle would have none of Zhuwao’s idiocy given that the other Patrick is abroad trying to trick the IMF to release more chikwereti!

    • @Short. Small boy indeed especially if a 90+ year old man can think more pragmatically and lucidly than his 40 something year old nephew. If these “Underwear G-Stringers sized 40” factionalists think Patrick is one of the best brains within their scheming midst then the President has clearly exposed them as nothing but kindergarten politicians who will only consign Zimbabwe to the sewer if he were to bequeath the Presidency to them. Crocodiles 10/ Underwears (G-Stringers) 0!

  1. At last, some sanity of some sort has prevailed, it has been unbearable torture listening to & watching Zhuwaos madness in the past months

  2. The damage had already been done. Zhuwao gained a lot from what he was pushing for. Surely he gained fortunes during the confusion he created for companies. now that they have gained what they wanted his uncle bob clears the air. Ungavadii vasina tsitsi ava. the whites were much better than this bunch of thieves squandering as ministers. zvichapera chete

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  3. Mugabe is saying this after the horses have bolted so to speak. The confidence in Zimbabwe has already been lost. The best way to avoid confusion is to amend the Act so that it can be adhere to. The problem in Zimbabwe is that there is too much policy inconsistencies.There is no guarantee that the President, his Ministers and officials will not contradict this statement very soon. Trust is earned. How does a foreign investor trust this govt given its poor and atrocious record? Its cadabra cadabra for sure!

  4. okay lemme get this straight, so The president did not know or was not aware despite all the press coverage that Zhuwawo was forcing even the banks to indiginize? why wait all this while to clear the air when in fact this indiginization move was started by Kasukuwere. investors have been calling for a clearer view of this bill for ages only to be revealed now when the damage has already been done.

    having said that its still commendable that we now have some clarity around the issue. Zhuwawo has however proved kuti hapana zvinozivikanwa

  5. This is exactly why no investor will ever take us seriously. Mugabe and his cronies always create diversions and confusion that they may continue to loot the country’s resources and use the loot to bribe the rural folk through food hampers to blindly vote for them.

  6. the problem is anytime, we can get a new “clarification” form Mugabe, a different one from this…having forogotten that he clarified it before. and the inconsitencies will contiue, as they want to cause confussion and loot in the midst of it! vana Joao and Tyson negang reG40 vari kuda kulumawo mudhara asati afa.

  7. Its just taking cover, remember Chinamasa and Mangudya are currently in Washington for a spring meeting with the IMF. Sugar coating at play

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  9. A government in total disconnect.How can you inspire confidence in long term investors with such mixed messages hey?

  10. great leaders are always at their greatest when they joyfully and peacefully handover power. opportunists tend to hold on forever until they are ruined

  11. I tend to agree with @investor and others. The only clarification Zimbabweans, local and international investors want is through legislation. The Act should be amended such that it reflects exactly what Mugabe has said here. Otherwise no sane investor will take these clarifications seriously because tomorrow there shall be other clarifications.

  12. Confused statements from the same ruling party…you confuse the investors you ZANUPF maniacs!
    Moda mainvestors aunze mari yawo sei pasinganzvisisiki kuti chii chiri kutora nzvimbo? Let your YES be YES mhani kwete kuti nhasi uri mumuti, mangwana mugomo…! Wake up mhani!

  13. that is what Mugabe should have said first because his voice matters. From what he has said it means that the policy is not well understand by his people in government. I also hope that he doesn’t change his words when he is angry as he always done when burying someone.

  14. Mugabe thinks we are fools. He is trying to be the good guy by throwing his nephew under the bus. His ideals are wrong, his policies are wrong, his minister arent well educated. Of all the people, u remove Muchena & replace her with someone who doesnt have an educational background.

    Its very sad he looks down upon us when we put him there in the first place. He has to respect the electorate & vacate his office sooner rather than when he dies.

    He doesnt know who’s G40, he doesnt know where our 15 billion went. Now he tells us he didnt know about Juao’s indigenisation error. People like Mugabe give teachers a bad name.

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