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(NEWZIMBABWE) Tsvangirai backs indigenisation

COMMENT - To whom is indigenisation 'controversial', Mariam?

Tsvangirai backs indigenisation
by Mariam Isa I BusinessDay
06/05/2011 00:00:00

PRIME Minister Morgan Tsvangirai has voiced support for Zimbabwe's controversial indigenisation policy, which stipulates that locals should own at least 51% of the shares in foreign companies.

"Indigenisation is not about expropriation or nationalisation ... it’s about setting fair value," he said at a debate at the World Economic Forum in Cape Town .

It was the first time Zimbabwe’s opposition leader made clear he was in favour of the new laws, which took effect in March when foreign mining firms were given six months to sell a majority stake to local black investors.
Mining is one of the few profitable sectors in Zimbabwe and analysts warn indigenisation could curtail capital inflows.

"People have raised concerns about indigenisation," Tsvangirai told reporters. "Across the political divide we agree on the principle of citizenship empowerment."

Tsvangirai said what was important was how the new laws would be implemented. "We are trying to model a matrix that will satisfy both the investor and our desire to see people (participate more in the economy).
"We are contributing the mineral resource, you will exploit it and we will exploit it to the benefit of both of us.

"Companies want political stability and policy consistency, we have been consistent in the area of indigenisation."

Tongue in cheek, Tsvangirai asked a mining panel discussion why there was no metals exchange in Africa or a cartel such as Opec. He criticised the lack of accountability in Zimbabwe’s mining sector, saying that the fiscus had only received a few dollars from the industry.

"We can’t have this .... there must be accountability for how they are dispersed to the benefits of the population."

Indigenisation Minister Saviour Kasukuwere, a member of President Robert Mugabe's Zanu PF party in the coalition, welcomed Tsvangirai's remarks.

Kasukuwere said he was glad Tsvangirai has "said very clearly" the need for local people to share in resource wealth.

"Just as we talk about civil rights, so we must talk about platinum rights... What we seek to achieve is shared growth," the minister said, calling on western countries to lift sanctions on the country.

"The real issue that faces us is sanctions. Indigenisation is secondary to western sanctions."

Labels: INDIGENIZATION AND EMPOWERMENT ACT (ZIMBABWE), MORGAN TSVANGIRAI

posted by MrK @ 7:13 PM