BY OBEY MANAYITI
ZANU PF youths yesterday reacted angrily to suggestions by Finance minister Mthuli Ncube that foreign investors retain 100% ownership of their investments in the mining sector, saying the move was ill-informed.
During an interview with Bloomberg last week, Ncube said the country was working on scrapping the Indigenisation Act, which restricts foreign shareholding in platinum and diamond ventures to 49% as the country seeks to attract foreign capital.
But Zanu PF youth commissar Godfrey Tsenengamu said there was no wisdom in reversing President Emmerson Mnangagwa’s decision.
“What is it we are driving at as a country? What has informed that decision by the Finance minister? What has happened to the declaration by the President which the Finance minister seems to be overturning?” Tsenengamu said.
“I don’t think 51/49% (threshold) on platinum and diamonds was really driving away investors, but here is a very good example of what drives away investors, policy inconsistency.
“The President saw reason in partially reserving that sector for the indigenous [investor] as this would ensure the empowerment and economic emancipation of the previously disadvantaged, but what’s surprising today is how the Finance minister can just change that today.