Commercial Farmers' Union of Zimbabwe

Commercial Farmers' Union of Zimbabwe

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Indigenisation not about expropriation

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 

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 

“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.” –


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