President Robert Mugabe of the Republic of Zimbabwe at a 87th birthday reception on Feb. 21, 2011. Mugabe has been the leader of the southern African state since national independence in 1980. He will stand for re-election this year., a photo by Pan-African News Wire File Photos on Flickr.
Indigenisation goes a gear up
Sunday, 27 March 2011 00:14
Sunday Mail Reporter
THE country’s indigenisation and economic empowerment drive has gone a gear up following the introduction of regulations that set minimum requirements for foreign companies to implement indigenisation plans.
In terms of an Extraordinary Government Gazette published last Friday, all the concerned firms should comply with the law.
Those that had already submitted plans with a low indigenous shareholding quantum are required to adjust the figures to 51 percent within 45 days from the date of the publication of the gazette.
Every foreign company is expected to achieve the minimum
indigenisation quota following the approval of its implementation plan within six months of the publication of the notice.
The Minister of Youth Development, Indigenisation and Empowerment is only obliged to extend the deadline by not more than three months where good reason would have been shown.
The regulations affect every company whose net value is US$1 or more.
A senior official in the Ministry of Youth Development, Indigenisation and Empowerment yesterday said the regulations would ensure mineral resources are in the hands of indigenous Zimbabweans.
The official said Government expected firms to form mutually beneficial partnerships with locals.
“This ultimately means of the 13 sectors identified for indigenisation, mining has been finalised.
“We are looking at having completed everything in this sector within the next six months.”
The official said Zimbabweans would benefit through the National Indigenisation and Economic Empowerment Fund, the Zimbabwe Mining Development Corporation and a statutory sovereign wealth fund that may be created by law.
He said empowerment would also benefit management, employees and respective communities.
The envisaged sovereign wealth fund will help employees negotiate, he said, adding that the new regulations also help Government deal with speculative companies.
“We are going to scrutinise speculative tendencies in the sector. If one holds a licence for something worth a dollar, we will be able to bring them to account.”-The Sunday Mail