Tsvangirai Opts For Indigenisation
07/05/2011 17:39:00
JOHANNESBURG, May 07, 2011- Zimbabwe MDC leader says at World Economic Forum
he supports indigenisation policy that stipulates locals own 51% of the
shares in foreign companies
ZIMBABWEAN Prime Minister Morgan Tsvangirai yesterday voiced support for his
country’s controversial indigenisation policy, which stipulates that locals
should own at least 51% of the shares in foreign companies.
“Indigenisation is not about expropriation or nationalisation … it’s about
setting fair value,” he said at a debate at the World Economic Forum in Cape
Town .
It was the first time Zimbabwe’s opposition leader made clear he was in
favour of the new laws, which took effect in March when foreign mining firms
were given six months to sell a majority stake to local black investors.
Mining is one of the few profitable sectors in Zimbabwe and analysts warn
indigenisation could curtail capital inflows.
“People have raised concerns about indigenisation,” Mr Tsvangirai told
reporters. “Across the political divide we agree on the principle of
citizenship empowerment.”
Mr Tsvangirai said what was important was how the new laws would be
implemented. “We are trying to model a matrix that will satisfy both the
investor and our desire to see people (participate more in the economy).
“We are contributing the mineral resource, you will exploit it and we will
exploit it to the benefit of both of us.
“Companies want political stability and policy consistency, we have been
consistent in the area of indigenisation.” Tongue in cheek, Mr Tsvangirai
asked a mining panel discussion why there was no metals exchange in Africa
or a cartel such as Opec. He criticised the lack of accountability in
Zimbabwe’s mining sector, saying that the fiscus had only received a few
dollars from the industry.
“We can’t have this …. there must be accountability for how they are
dispersed to the benefits of the population.”