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Zimbabwe: Indigenisation Act - Stakeholders Respond
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 Published by the government of Zimbabwe |
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The Herald (Harare)
21 May 2008
Posted to the web 21 May 2008
Harare
The Ministry of Indigenisation and Empowerment has received mixed responses from stakeholders on its call for submissions on the impending implementation of the Economic Empowerment and Indigenisation Act.
The secretary for Indigenisation and Empowerment Mr Ozias Hove said while some stakeholders had responded by last Friday's deadline, others had sought for an extension.
"Some stakeholders wanted time to consult to ensure that their submissions will be all inclusive because we are talking of strategic businesses. "We had assumed that all stakeholders had already done their consultations," he said.
Mr Hove said that once they have received and collated all the submissions these would be reflected upon by the minister who would then issue a Statutory Instrument. Mr Hove said they would also seek to establish how the views of stakeholders would relate to those of Government.
"If we are at variance it will cause us to call for meetings to try and find common ground. "In the event that we continue to be at variance after the meetings then the minister would have the final word," he said. The ministry sent out letters last week to stakeholders to submit their proposals on the implementation of the Indigenisation Act to the ministry in writing by May 16.
In the letters, the ministry warned that in the event that stakeholders fail to make submissions it would proceed to implement the Act as it deemed fit.
The Economic Empowerment and Indigenisation Act came into force in March when it was assented to by President Mugabe. The new law seeks to enforce the empowerment of indigenous people through the acquisition of majority shareholding in foreign-owned companies.
The law stipulates that at least 51 percent of a foreign company's shareholding should be locally owned. Organisations such as the Zimbabwe National Chamber of Commerce have already held several meetings on the new law, where participants expressed reservations on the timing of the new law and the power vested in the minister, among other issues.
Locals were expected to achieve the empowerment process through the acquisition of shares with all transactions pertaining to the acquisition being done through engagement between the companies and potential investors. The Government has insisted that no shares would be given for free as investors would agree on a price of shares with concerned companies.
Plans are already underway to set up an indigenisation fund to pool resources to assist locals meet the financial obligations for the acquisition of shares from companies in strategic areas of the economy.
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The fund would be getting its resources from the fiscus and a levy on both private and public companies.
This is such a stupid idea! Zimbabwe needs foreign investment. Forcing foreign owned businesses to give up more than half of their companies will only chase them away.
If anything the Zim govt should be encouraging indigenous business and giving them support in the way of tax breaks etc. And how about privatising all those state businesses? Strive Masiyiwa had to fight the government in court for years just for the right to start a mobile phone company.
ZANU-PF is only interesting in taking, not building.
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