By Terrence Mawawa| President Emmerson Mnangagwa is moving to severely alter Robert Mugabe’s controversial Indigenisation Act which blocked foreigners from investing unless they cede 51% of their total shareholding.
Analysts had for years called for this Act to be repealed.
The development was revealed by Finance Minister Patrick Chinamasa in his budget which included the new bill proposal. (FULL LIVE REPORT & ANALYSIS TO FOLLOW ON ZimEye.com).
The proposed Finance Bill now restricts the 51% shareholding factor to “diamonds and platinum. These two are now the only sub-sectors to be 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.
Reserved Sector
The Reserved sector is only for Zimbabwean citizens, and for non-Zimbabweans, entry into the Reserved sector will only be by special dispensation granted by Government.
As we seek to attract both local and foreign investments, existing and potential investors become fully guided by the Amendments we seek to effect through the Finance Bill that is being brought to this August House.
11 Replies to “BREAKING NEWS – Mnangagwa Moves To Rip Out Mugabe’s Indigenisation 51% Act, & Amend It”
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Views might differ but on this one Charlie hazvidi chikoro ..This is the only way ED canmake u eat Charlie
While a local reaps 0% and condemned to poverty, without investors.
President Emmerson Mnangagwa is moving to severely alter Robert Mugabe’s controversial Indigenisation Act which blocked foreigners from investing unless they cede 51% of their total shareholding.
Analysts had for years called for this Act to be repealed.This was one stupid act that should have never ever been passed.
The proposed Finance Bill now restricts the 51% shareholding factor to “diamonds and platinum. These two are now the only sub-sectors to be designated as ‘extractive.’
Who owns the diamonds other than some men in green uniform?
Your last paragraph is spot on. Ignorant people don’t understand capital markets. We are competing for capital with investment opportunities elsewhere that are far less risky and have greater rewards than ours, then you hear someone saying “sellouts” to those who want to attract that capital.
If you the Zimbabwean national don’t have the capital to extract value, you will reap 0% of the Gold & Land.
Its smarter to let the foreigner buy and own 100% of the asset then we tax them and benefit from skills and technology transfer and employment.
EFF are young inexperienced and irresponsible Theorists – we can only listen to realistic and practical people. They were misled by Mugabe who ruined his own country!!
Some people have no brain surely!
Well, empowerment is not only about ownership. It can and should be demanded that the foreign investor ensure employment equity from the shop floor right up to the executive leadership; skills transfer; Community Social Investments – e.g. housing, sanitation, transport and education for employees.
Capital is a very scarce commodity and there is competition for it in this global village – so, you cant discourage it by imposing impossible ownership ratios. This has to be done rationally. I would advise you to study the De Beers and Government of Botswana strategic Partnership in Diamond mining and what it has done for Botswana’s economic development and the brimming government coffers.
Locals don’t have the capital of the magnitude most of these projects demand; and you have to compete for it with other investment destinations whose investment regime is far more attractive than yours!!
Its no brainer, That means a foreigner can reap 100% of our Gold& land while the indegenous Zimbabweans have no say. This is a far cry to what even EFF in SA are demanding. This regime is actually full of sellouts and traitors.
do it ED in style we need investors in this country