A Zimbabwe government minister on Wednesday sought to assure foreign firms, saying a new equity law requiring them to sell 51% stakes to locals did not entail “xenophobic dispossession”.
“This policy is not intended for xenophobic dispossession, but to ensure meaningful participation by the local people in economic activities such as mining,” said Indigenisation Minister Saviour Kasukuwere.
“Indigenisation and economic empowerment has become an emotive subject as a result of misconceptions regarding the government’s intention,” he told a mining conference in the capital, attended by 300 foreign delegates.
“We are not declaring a one-size-fits-all for black empowerment in Zimbabwe, cognisant that situations differ across sectors.”
Deadline extended
The new law took effect on March 1, requiring large foreign corporations to give majority stakes to local shareholders.
The government had given the firms 45 days to report their efforts at complying, but the deadline was extended indefinitely.
The government has also dropped the term “cede” from the law and replaced it with “business transaction”, which was welcomed by foreign embassies in the country, although they still expressed reservations about the law.
The Chamber of Mines has proposed selling 15% to locals, saying government should recognise that most mining companies build schools and roads in the areas where they operate, benefiting nearby communities.
Some of the foreign firms operating in the country include British Petroleum, Total, Chevron, Barclays Bank, Standard Chartered and platinum giant Zimplats. — AFP