Home » Governance » Indigenisation – Nhema Urges Consistency, Clarity

INDIGENISATION Minister Francis Nhema said Thursday that there is a need for more clarity and consistency on the country’s indigenization law to allay foreign investors’ concerns.

The country’s indigenization law, enacted in 2010, requires foreign businesses to cede 51 percent of the share-holding to black Zimbabweans.

A centre-piece of its policy, the ruling Zanu PF party said the law is necessary to empower the black Zimbabweans who were marginalized during colonization prior to the country’s independence in 1980.

Nhema said while most investors were not complaining about the law itself, they are concerned by the lack of clarity and consistency by government in implementing the law.

“What the foreign investors have been arguing about – those who have come to my office – is that we need clarity, persistence and consistence. What the investors have been saying is that we want to know what it means, what the law says,” he said.

Since 2010, the government has pushed for implementation of the indigenization law in the mining sector, but there have been different versions of how the government would move from there which are the next prioritized sectors to be indigenized, how will foreign investors cede the shares, and can investors apply for exemption?

Addressing a parliamentary committee, Nhema denied claims that the law was scaring away investors, arguing that most countries in the world had a similar law.

Source : New Zimbabwe