(HERALD) Indigenisation policy amended

Wednesday, June 23, 2010

(HERALD) Indigenisation policy amended

Indigenisation policy amended
Herald Reporters

Cabinet has approved four amendments to the Indigenisation and Economic Empowerment Regulations.

Youth Development, Indigenisation and Economic Empowerment Minister Saviour Kasukuwere announced the amendments — which are an inclusive Government position — in Harare yesterday.

The amendments will see the term "cede" in the empowerment regulations being substituted with "dispose" and allow for community share ownership trusts.

The amendments will also result in establishment of committees to recommend sector-specific thresholds that foreign-owned firms must comply with.

Minister Kasukuwere said Cabinet also agreed that in the event that workers fail to purchase shares, the right of first refusal after that goes to the Economic Empowerment Fund.

However, this will only apply if the stake is over 28 percent. "The ministry has been engaged in extensive consultations with the various stakeholders.

"The process has led to amendments to the regulations to take into account sentiments expressed by the stakeholders," he said.

Some sections of the media and international community had raised concerns about certain provisions of the indigenisation and economic empowerment regulations that were gazetted under Statutory Instrument 21 of 2010 and came into force in March.

Minister Kasukuwere said all stakeholder concerns had been accommodated.

He said 14 sector-specific boards had been established to make recommendations to the main indigenisation board chaired by Mr David Chapfika.

The minister said shares not bought in employee share ownership schemes would be purchased through the Empowerment Fund and would be held in trust by the State.

Minister Kasukuwere said he was in consultations with the Finance Ministry to come up with ways of raising money for the Empowerment Fund.

With regards to community share ownership trusts, Minister Kasukuwere would ensure even marginalised people were incorporated in the mainstream economy.

"We have a duty to make sure that the country and its communities are supported," said Minister Kasukuwere.

He said Government would soon announce mechanisms to swift respond to investor concerns.

While the minimum equity threshold will generally remain at 51 percent shareholding for locals in firms with a value over US$500 000, Government would consider special waiver requests.

To date, over 600 companies — many of them listed on the Zimbabwe Stock Exchange — have submitted proposals on how they will meet the indigenisation regulations.

Minister Kasukuwere said most of submissions were satisfactory.

Government initially set March 30, 2010 as the deadline for submission of empowerment proposals, but pushed back the deadline to June 30 to accord companies more time.

Meanwhile, last week Minister Kasukuwere said Government would engage foreigners accused of pushing Zimbabweans out of urban retail space.

In a speech read on his behalf by a director in the ministry, Mr Tingaitei Fungati, at a workshop to promote economic advancement of women, Minister Kasukuwere said the Asian communities that own buildings in Harare would be engaged on the matter.

"There are too many small shops in down town overloading Zesa and affecting service delivery by council," he said.

Affirmative Action Group secretary-general Mr Tafadzwa Musarara added: "We are very worried as AAG that our citizens are plying their trade in flea markets because they have been pushed out of shops."

Labels: NATIONAL INDIGENISATION AND ECONOMIC EMPOWERMENT BOARD - ZIMBABWE, SAVIOUR KASUKUWERE