Consistency vital in implementing indigenisation

Published: 14 June 2014

Youth, Indigenisation and Empowerment Minister Francis Nhema is satisfied with results of the Indigenisation and Economic Empowerment Act since its inception saying investors are now warming up to the Act and are now consulting in good faith.

"I am not disappointed at all, am actually happy to make it work. Therefore, let us work together, engage each other since we all at some point have solutions," he said.

Minister Nhema said investors were worried about consistency rather than existence of the law.

"The issue raised by most investors has been about consistency. It is not about indigenisation," he said.

"They say indigenisation is not new (to them)."

"We have to be consistent so that investors will come knowing what to expect and not get surprises."

He said the law was aimed at improving the standards of living for Zimbabweans by ensuring that they could afford to have basic meals, good health and education as well as creating employment.

"My appeal is that we work together in the humanly spirit in which the law was designed," he said, adding the law was not meant to be vindictive or discriminatory.

Minister Nhema called for dialogue on matters that investors did not understand.

"Most investors coming to my office are no longer questioning or concerned about the Indigenisation Act, they now need assurance and consistency to the effect that if its 30 percent it remains there."

He said the investors need this confidence so as to make informed budgets on long term investments.

Minister Nhema maintained the empowerment laws were strict on investment in natural resource sectors where the 51-49 percent threshold was not negotiable.

"I have said there won't be a one size fit all approach and I am working on that. I cannot pre-empt the details but once ready they will be communicated through formal channels," he said.

Minister Nhema said the ownership thresholds were not the only way in which foreign-owned business could comply with the empowerment laws.

Listing on the stock exchange or implementation of programmes which empowered local communities were also acceptable forms of compliance, he said.

He said the Government offered a variety of incentives which could be negotiated separately for investment in different sectors of the economy.

By end of December last year, at least 1 471 companies had complied with the indigenisation law while 700 had been certified in the reserved sectors, which are set aside for locals only.
- The Herald

Tags: Indigenisation,