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(NEWZIMBABWE) Indigenisation regulations take effect

Indigenisation regulations take effect
by Lebo Nkatazo
02/03/2010 00:00:00

A NEW law requiring “indigenous Zimbabweans” to take 51 percent shareholding in major foreign firms came into effect on Tuesday as a minister warned there was “no going back” on the controversial policy.

The Indigenisation and Economic Empowerment Regulations have caused a split in the unity government of President Robert Mugabe and former opposition rivals, Prime Minister Morgan Tsvangirai and Deputy PM Arthur Mutambara. Tsvangirai describes the policy as “dangerous” and claims he was not shown the regulations before they were gazetted.

“They were published without due process as detailed in the constitution and are therefore null and void,” Tsvangirai said two weeks ago.

But on Tuesday, Indigenisation Minister Savior Kasukuwere, a member of Mugabe's Zanu PF party, said: “The regulations are already in place. There is no going back.”

The regulations require all existing businesses with assets valued over US$500,000 to declare their shareholding status to the government within 45 days from March 1.

New enterprises would be required to do so within 60 days. Businesses that fail to meet the 51 percent shareholding are required to submit a plan within 45 days from March 1 on how they intend to meet the requirements.

The regulations give effect to the Indigenisation and Economic Empowerment Act passed by parliament in March 2008.

Labour unions and economists are warning that the new regulations will hurt the country’s chances of attracting critical foreign investment, an argument dismissed by Mugabe over the weekend.

"Our indigenisation policy, like the land reform programme, is meant to correct historical imbalances in the ownership of our resources," Mugabe said last Saturday.

Labels: BEE, CEEC, INDIGENIZATION AND EMPOWERMENT ACT (ZIMBABWE), SAVIOUR KASUKUWERE

posted by MrK @ 12:33 AM