…as investors fret on indigenisation
http://www.theindependent.co.zw/
October 19, 2012 in Business
SOUTH African businesspeople in Zimbabwe on a trade and investment mission
have expressed apprehension over the country’s Indigenisation Act, saying it
exposed policy inconsistencies and contradictions within the coalition
government.
Report by Faith Zaba
The businesspeople, part of the delegation of 33 companies led by their
Trade and Industry deputy minister Elizabeth Thabethe, said they are worried
that parties in the inclusive government are not speaking with one voice on
the empowerment drive.
Zanu PF has vowed to force all foreign-owned companies to hand over 51% of
their shareholdings to locals while the two MDC formations have opposed the
legislation charging it is retrogressive.
The businesspeople said the implementation of the policy was ill-timed as it
scared away investors.
Kagiso Jansen, chief executive officer of Mission Point, a hydraulics
company based in Bloemfontein in the Free State province, said they were
concerned local partners would not have money to pay for a 51% stake.
“So the main concern is that we need to find a way of working around the
capitalisation of their shareholding,” said Jansen. “The general concern is
that most of these guys want to do business and they are willing to partner,
but capitalising their shareholding portion is one thing to look at, but I
am sure there is a way.
“It’s beyond our control, but you cannot just come with a project and give
shares for free. If maybe, for example, we can say to the guys this is your
shareholding but you will pay for it with your dividends and we agree on a
timeframe,” said Jansen.
He said they would determine the monetary value of the shares and every time
there is a dividend, their portion of the dividend would be paid back like
an internal loan.
Jansen said investors should take up political risk insurance to protect
their investments.His views are shared by many investors.