Zimbabwe President Robert Mugabe has insisted that locals will hold a 51% stake in any big business venture involving foreign investors, in line with the country’s indigenisation legislation.
Prime Minister Morgan Tsvangirai’s Movement for Democratic Change, a partner of Mugabe’s Zanu-PF party in Zimbabwe’s government of national unity, wants this requirement relaxed, and its lobbying has seen the implementation of the indigenisation law delayed.
While Mugabe has taken a hard line, he assured investors when he spoke at this year’s annual gensale grinding mill lubrication systemeral meeting (AGM) of the Zimbabwe Chamber of Mines, at the end of May, that the mining industry would not be expropriated. He pointed out that consultations with the private sector, aimed at improving the indigenisation regulations, were under way.
“Government has3 cone crusher price accepted the principle of empowerment credits as an integral component of the 51% requirement. I am, thus, amazed by the rush of negative publicity towards the indi- genisation policy when, in fact, it provides for flexibility where necessary,” said Mugabe.
When asked about reactions towards tcompany that sell crushershe indi- genisation policy, a number of mining majors eager to expand into Zimbabwe told Mining Weekly that the government of Zimbabwe needed to clarify the issue of empowerment credits.
At the AGM, Mugabe did just that, saying that local procurement, capacitating industries and new companies oconcrete crushers price used americawned by indigenous businesspeople all qualified for empowerment credits. Corporate social investment in communities also created a visible platform for local empowerment, thus achieving broad-based and transformative empowerment. The construction of dams and irrigation schemes, amineral process flow sheet symbols well as approved scholarship and skills development programmes also qualified for empowerment credits.
“The implementation of the indigenisation programme will take cognisance of the need to promote growth of the mining industry. Such growth requires the ability to attract new investment, in particular foreign direct investment, and to facilitate working capital as well as long-term capital for exploration and mine development. Accordingly, the implementation mechanisms are being refined to ensure that investors find it attractive to expand current operations and bring new investment into the country,” said Mugabe.
He added that the process of correcting historical wrongs included the path of profitable partnerships and joint venture initiatives with foreign investors in the mining sector. He said that the Zimbabwe government believed that this had the potential for a sustainable mutually beneficial partnership framework which would benefit foreign investors and local Zimbabweans. He warned that, to receive the 51% stake in a partnership, local investors would have to demonstrate fair value for their equity stake.