Home » Governance » Indigenisation Law – Zanu-PF Admits Flaws

FOR the first time since the implementation of the controversial indigenisation laws which forced foreign owned companies to cede 51% of share ownership to government, Zanu PF has admitted the law infringes on the rights of the investors.

A Central Committee report observed that the law “violates the declaration of rights in the Constitution, particularly section 16 wherein it is alleging that the minister, by designating entities and primary state institution, is compulsorily acquiring private property”.

This is in tandem with the concerns of the observers who have always argued that the indigenisation law infringes on the rights of the investors. The law has been blamed for contributing towards the economic meltdown.

The Zanu PF report also highlighted that “by designating entities, the minister has imposed partners on foreign investors thereby infringing their right to freedom of association.”

Recommendations to government are that “the law requires further and constant reform to suit the policy needs and imperatives of the indigenisation programme.”

“These imperatives arise in the first instance from the deficiencies in the current law and secondly from the directives of the manifesto on indigenisation and empowerment.”

The report also highlighted critical areas which call for reform and these include: “legislating to recognition of resource value in indigenisation of mining businesses, general amendments to strengthen compliance enforcement mechanism, harmonisation of investment legislation so that the ministry can propose new instruments to achieve harmony between attracting foreign investment on the one hand, and indigenisation on the other.”

Source : New Zimbabwe