‘Indigenisation law will not be amended’
http://www.thezimbabwemail.com
Staff Reporter 3 hours 37 minutes ago
INDIGENISATION and Economic Empowerment minister Saviour Kasukurewere has
vowed not to amend the country’s controversial indigenisation laws,
threatening to take stern action against foreign-owned banks which are yet
to comply with Zimbabwe’s equity laws.
Addressing guests at the signing ceremony for the terms agreement between
the country’s largest platinum miner, Zimplats, and government, Kasukuwere
warned that the State would rein in banks that fail to dispose of
controlling stakes in line with empowerment laws.
Foreign-owned companies are required to sell a 51% stake to locals under the
country’s indigenisation and empowerment legislation enacted in 2008.
Zimplats is a unit of Johannesburg Stock Exchange-listed Impala Platinum
(Implats).
“I would like to encourage other companies, particularly in the banking
sector, to comply with our laws as no-compliance will no longer be
tolerated,” said Kasukuwere.
“Uncalled-for defiance and arrogance will not be tolerated as all companies
must respect the law and desist from provoking the State.
“There will be no sacred cow spared, no stone unturned to ensure that the
policies are fully implemented”
His remarks come as the MDC-T insists government was working on amending the
equity law amid criticism that it was discouraging foreign direct
investment.
Yesterday Zimplats agreed to dispose of its 51% shareholding to locals in a
transaction valued at $971 million. The National Indigenisation and Economic
Empowerment Fund will have 31% while the Zimplats Employee Share Ownership
Trust and Community Share Ownership Trust will have 10% apiece.
Kasukuwere said some government officials “have been peddling falsehoods
that the law will be amended to make exemptions for investments in certain
areas of the economy”.
“The law will not be amended and not the least because there is no need to
do so,” he said.
“. . . We have shown that the provisions of the law allow government to
lower the threshold of indigenisation in areas such as massive investments
for a certain period of time.
“Unfortunately, despite our overtures to implement this regime, our
colleagues have continued to engage in cheap politicking and unnecessarily
confusing the investors.”
Speaking at the same function, Implats group chief executive officer
Terrence Goodlace said the signing of the deal was expected to ease investor
uncertainty on Zimbabwe.
“I am, despite the hard times, excited about the future for Zimplats and
platinum mining in Zimbabwe. To start with, the uncertainty that had dogged
Zimplats during negotiations is now hopefully a thing of the past,”Goodlace
said.
As of November, the white metal dominated mineral exports contributing $689
million out of $2,4 billion total ex
ports made by the capital-intensive sector.
According to the National Indigenisation and Economic Empowerment Board,
over 1 300 firms have submitted compliance plans and out of this, only 350
applications have been approved.