THE Affirmative Action Group (AAG) has asked government to reconsider its position on the indigenisation law, proposing that the threshold be reduced to between 10% and 30% for locals to benefit.
BY MTHANDAZO NYONI
Presenting a $5,7 billion National Budget in Parliament last week, Finance minister Patrick Chinamasa proposed to scrap some provisions of the country’s controversial indigenisation law in an effort to promote foreign direct investment.
He said the proposed amendments would confine the 51/49 indigenisation threshold to only the two minerals, namely diamonds and platinum, in the extractive sector.
However, the empowerment lobby group, AAG, said while it welcomed the proposals, scrapping the law altogether would disempower Zimbabweans economically.
“While we welcome the proposals to lure foreign direct investment through the scrapping of the threshold of indigenisation, we believe the Finance minister Patrick Chinamasa is taking it too much. Indigenisation cannot be allowed to die a natural death,” AAG Matabeleland Chapter president Reginald Shoko said.
“We require the locals to partake in the expansion of our economy and we propose that the threshold be reduced to between 10% and 30% and in some cases, management contracts must be given to locals in order to utilise the human capital we have as a country.”
Shoko said the government should conduct consultations before implementing the proposal.
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The indigenisation law, which requires at least 51% control by locals in all businesses with a net asset value of at least $500 000, has been blamed for Zimbabwe’s inability to attract significant foreign investment and create employment. The regulations being crafted are set to be introduced in April 2018.
