Indigenisation not about expropriation
By Editor
Sunday, 08 May 2011 15:15
HARARE – Zimbabwean Prime Minister Morgan Tsvangirai yesterday voiced
support for his country’s controversial indigenisation policy, which
stipulates that locals should own at least 51 percent 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,” Tsvangirai told
reporters. “Across the political divide, we agree on the principle of
citizenship empowerment.”
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,” he said.
Tongue in cheek, 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.” – businesslive.co.za