New youth quota system for companies
http://www.theindependent.co.zw/
January 11, 2013 in News
INDIGENISATION minister Saviour Kasukuwere says companies would soon be
required to have a 25% youth representation of those under 35 years on their
boards of directors in line with the Indigenisation and Economic Empowerment
Act.
Report by Taurai Mangudhla
This follows a 2012 cabinet decision to reserve a 25% quota of all economic,
indigenisation and empowerment facilities across the economy for the country’s
youths.
Information gathered by the Zimbabwe Independent indicates youths would be
independent board directors.
Kasukuwere said his ministry would apply the new quota system to all
companies that have recently complied with the empowerment law as they are
all expected to announce new boards soon.
“This is a way to empower our youths and we want to ensure full compliance,”
said Kasukuwere in Mt Darwin last Friday.
“I have noticed that the youths have a tendency to assume (that) sitting on
the boards of big companies is a preserve for the older generation and by so
doing they are discriminating against themselves,” he said.
Kasukuwere said the mining sector was almost in full compliance with the
Indigenisation Act, which compels all foreign-owned companies to relinquish
51% shareholding to indigenous Zimbabweans.
According to his ministry’s statistics, 120 mining companies had complied
with the indigenisation law with 400 Employee Share Ownership Trusts created
at the end of November 2012.
Compliant extractive firms include Mimosa Platinum Mine, Pretoria Portland
Cement and Unki Platinum.
Kasukuwere said government had appointed young lawyer Psychology Maziwisa as
one of the new Zimbabwe Mining Development Corporation board members in line
with the new requirement.
This is also in line with his ministry’s target to enable youths to
participate in the mainstream economy and contribute to economic growth and
development.
He said the National Indigenisation and Economic Empowerment Fund, or the
sovereign wealth fund, stood at US$4 billion as at December last year and is
expected to top US$5 billion by June this year.