Zim targets Tongaat Hulett in indigenisation scheme

The latest ultimatum issued by the National Indigenisation Economic and Empowerment Board comes a week after Indigenisation Minister Saviour Kasukuwere acquired shares under the community share ownership scheme from mining companies operating in Hwange. Coal giant Hwange Colliery is the largest mining company in the Hwange area to have been affected by the 51% indigenisation law as it was forced to cede shares to the community.

A part of the letter sent to Triangle by Zimbabwe's empowerment board said: "We request that Triangle submit a compliant plan to the ministry of indigenisation as soon as possible, and in any event, not later than 14 days from receipt of this letter … ". 

The board wants Triangle to comply with the indigenisation policy immediately by ceding shares to two schemes; to the company's employees and to the surrounding community where it carries out its operations. Triangle has been advised that "with respect to the creation of community ownership trust, the government position is that your business is involved in the exploitation of natural resources, including state land".

Economic observers have warned that the ultimatum could see Triangle halt plans to increase sugar production and was an indication that the indigenisation programme was spreading beyond the mining sector.

Economist Eric Bloch, a senior partner at H&E Bloch said; "This [the spread of indigenisation programme] is a natural occurrence as Zanu-PF prepares for the elections next year".

Impala Platinum's Zimbabwe operations were forced to give 51% of its shares to the government in March.

But reports circulated that the government didn't have enough money to pay for shares in companies in the country.

In March, empowerment board chairperson David Chapfika was quoted in local media as saying it urgently needed $6-million to help finance the purchase of shares offloaded by foreign companies under the controversial empowerment laws.

"We have been lobbying the finance ministry to give us the money to meet our requirements," Chapfika reportedly said.

Economists told the M&G that it was "no secret that the government is broke".

Kasukuwere has indicated that the indigenisation programme would target foreign-owned banks, which he accused of refusing to lend money to locals to finance start-up ventures. The empowerment law was promulgated in 2007 and has been condemned by political and economic observers and foreign investors who say that it bears the hallmarks of the country's land seizures of 2000.

Advertisting

Steenhuisen takes the lead in DA race while Ntuli falters

‘If you want a guarantee buy a toaster. This is politics’

Ramaphosa bets big on infrastructure to boost economy

Sona was a mixed bag but there were some meaningful announcements

Stranded commuters say Ramaphosa’s rail promises ring hollow

Cape Town’s largest passenger rail line has been closed for months, hitting people’s pockets and adding to road traffic congestion

EFF ‘circus’ becomes contagion as MPs heckle Malema

ANC MPs test the EFF’s disruptive tactics on the leader of the Red Berets in Sona reply
Advertising

Press Releases

Response to the report of the independent assessors

VUT welcomes the publishing of the report of the independent assessors to investigate concerns of poor governance, leadership, management, corruption and fraud at the university.

NWU student receives international award

Carol-Mari Schulz received the Bachelor of Health Sciences in Occupational Hygiene Top Achiever Award.

Academic programme resumes at all campuses

Lectures, practicals, seminars and tutorials will all resume today as per specific academic timetables.

Strategic social investments are a catalyst for social progress

Barloworld Mbewu enables beneficiaries to move away from dependence on grant funding

We all have a part to play to make South Africa work

Powering societal progress demands partnerships between all stakeholders

So you want to be a social entrepreneur?

Do the research first; it will save money and time later

Social entrepreneurship means business

Enterprises with a cause at their core might be exactly what our economy desperately needs

Looking inwards

Businesses are finding tangible ways to give back – but only because consumers demand it