Breaking: Indigenisation law to be relaxed

Government will expedite a process to amend the Indigenisation and Economic Empowerment Act to liberalise most sectors of the economy, Finance minister Patrick Chinamasa has said.

BY TAPIWA ZIVIRA

Presenting the 2018 National Budget, Chinamasa said only the diamond and platinum mining sectors will be affected by the requirement to have at least 51 percent local ownership.

“Government is, through the Finance Bill being submitted to this August House for the 2018 financial year, amending the Indigenisation and Empowerment Act, to bring the following into effect from April 2018:

Extractive Sector

• Diamonds and platinum are the only sub-sectors designated as ‘extractive.’

• Accordingly, the proposed Amendments will confine the 51/49 Indigenisation threshold to only the two minerals, namely diamonds and platinum, in the extractive sector.

• The 51/49 threshold will not apply to the rest of the extractive sector, nor will it apply to the other sectors of the economy, which will be open to any investor regardless of nationality,”said Chinamasa.

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15 Comments

  1. I guess you are leaving yourselves room to keep plundering and stealing the proceeds from these minerals.Will the locals be ponying up 51% of the costs of the operations?

  2. It must apply to all minerals not selected ones

  3. This indegenisation policy must be abolished. Make Zimbabwe investor friendly country. Chinamasa it’s pointless to say diamonds and platinum the policy will exist cancel in every sector and start a new chapter. Mugabe policies were ruthless because of promotion of corruption and misgovernence.

  4. josphat mugadzaweta

    while they still hold the 49% that they looted in the last 5 years. anyway investors are not monkeys that just celebrate after any silly announcement like this. they will take they time because the zanu monkeys are known for their insincerity.

  5. Comment…learn to appreciate if something has improved do not be negative always,you might not be a zanu supporter but be impartial on your judgments .Ghost workers are being fired,toxic economical policies are being amended and on precious minerals check with botswana de beers are getting 30 percent of diamond the rest is for botswana so there is no way foreigners will get more than 50 percent.

  6. this is a commendable move, a better budget so far since the GNU era.

  7. I thought they would implement a lower percentage for local owners for everything example Ghana have minimum of 10% local ownership. There is a youtube video of ED praising this joint venture policy which helps locals build their own entrepreneurship portfolio back in 2015 what has changed so drastically. There are lots of people in the diaspora with small capital that would like to invest in these partnerships with foreign investors and this would create an even stronger economy for Zimbabweans and remove the burden of job employment for the government. This new stance is very unfair because many Zimbabwe cant afford 100% capital for start up business and will be relegated to being organ grinders again in their own country. This is a let down for Zimbabweans, we need something that is fairer and inclusive especially for Zimbabweans

    1. @shanna, no need for any percentage. Think in terms of the investor. Say you go to Zambia, do your research and due diligence and then decide to build a factory. You use your money and borrow some and then finish building the factory. After all that work, do you think it will be fair for you to be forced to give a percentage of your investment to the locals who contributed nothing and took no risk?

  8. lovemore manyengawana

    Comment…thumbs up on getting rid of 300000 ghost workers…. Now proper land audit :many unproductive farms around… They must be put in hands of those capable to utilise them. Once we produce a lot on the land, everything wil fall in place

  9. Why not take a serious look at the successful countries in the world. Singapore is an example. It has done and continues to do away with all impediments to business including eliminating import duties and taxes. Zimbabwe is well placed geographically to be a duty free economic hub serving the whole of southern and central Africa. The expat diaspora would return with their capital and expertise gained overseas and the country would boom beyond belief. Government officials could afford to pay themselves handsomely and not have to resort to theft from the national treasury. All that is required is some intellectual political vision and strict adherence to the rule of law, not the law of the jungle as at present.

  10. The very word indigenisation is a misnomer. The Indigenous people of this land are the Khoisan/Basarwa people. Bantu people, of which the Shona are a part are not indigenous to Southern Africa. Unless those who come up with these programmes dont really know the meaning of the English word INDIGENOUS!!

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