(NEWZIMBABWE) 51pc stake retained in revised indigenisation regulations

Wednesday, June 23, 2010

(NEWZIMBABWE) 51pc stake retained in revised indigenisation regulations

51pc stake retained in revised indigenisation regulations
By: Floyd Nkomo
Posted: Wednesday, June 23, 2010 4:31 am

THE inclusive Government of Zimbabwe has approved and announced the new indigenisation and economic empowerment regulations maintaining the 51 percent stake reserved for indigenous Zimbabweans.

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

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

The amendments will also see the term "cede" in the previously gazetted regulations being substituted with "dispose" and will 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.

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.

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