Indigenisation law to be amended

 Minister Chinamasa

Minister Chinamasa

Lloyd Gumbo Senior Reporter
Amendments to the Indigenisation and Economic Empowerment Act that will see line ministries approving indigenisation plans in sectors under their purview are set to be effected soon after Parliament approves some of them through the 2015 National Budget.Speaking in the Senate while steering the Finance Bill recently, Finance and Economic Development Minister Patrick Chinamasa, said the Ministry of Indigenisation and Economic Empowerment would only issue compliance certificates on the recommendation of line ministries after their assessment.

He said the line ministries and that of Indigenisation and Economic Empowerment would monitor implementation after compliance with the law.

“Madam President, the Bill also seeks to amend the Indigenisation and Economic Empowerment Act, in order to devolve to line Ministries the responsibility for approving indigenisation plans, prescribing indigenisation and empowerment assessment rating schemes and certifying transactions as being compliant with the Act,” he said.

“These amendments are motivated by the fact that line ministries are generally more knowledgeable about the dynamics of the sectors which come under their responsibility.

“They will be in a better position than the minister responsible for the Indigenisation and Empowerment Act to know the real needs of each sector, the inadequacies, strengths and weaknesses. So, it is for this reason that we devolving this responsibility to line Ministries.”

Zanu-PF senator for Manicaland,  Retired Lieutenant General Mike Nyambuya said while devolving indigenisation assessment to line ministries was a bold move, it would have been ideal to clarify the indigenisation law from a centralised authority.

“Because again, if you leave it to line ministries and officials; you might create some room for rent seeking behaviour.  It would be good if could lay down one solid policy which is friendly to the investors.

“We need fresh money in this country and FDI is one clear source of attracting fresh money into the economy.  What I am saying is that, I would have been happier if the clarity had been done from a ministry point of view, rather than delegating it to the line ministry,” said Cde Nyambuya.

Minister Chinamasa defended the proposed amendments saying line ministries were best suited to do the job but said what was important was for Government to guard against corruption by publicising ministries’ decisions in that regard.

Chief Fortune Charumbira weighed in saying foreign-owned firms were naturally against indigenisation.

“But I have one apprehension which is that, in the previous arrangement, there were some allegations and insinuations that the whole issue of indigenisation was characterised in some cases by corruption and I think it is in the way it was being done.

“When we do this, I doubt if this might take away the issue of possibilities of corruption. We have just moved from one ministry to another ministry but as I am saying, it is good that we move to the line ministry but within that ministry, we need checks and balances.

“That is the critical issue. So that they do not have to approach a particular director or officer and say, can we indigenise and then they say, no, not yet. The particular officer or director may end up being corrupted and end up saying, no, we cannot indigenise now but let us do that after 10 years or 20 years,” said Chief Charumbira.

He said it was critical that Government comes up with measures to guard against corruption if the indigenisation and economic empowerment drive was to succeed.

 

 

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  • moriartyO

    This is going to breed yet more unnecessary confusion. The ministers that are there now are loudmouths with absolutely little to no knowledge of the departments they are ‘responsible’ for

  • moriartyO

    This is going to breed yet more unnecessary confusion. The ministers that are there now are loudmouths with absolutely little to no knowledge of the departments they are ‘responsible’ for

    • Tafirenyika

      This abundantly evinces the murkiness of the entire programme. You can tell that the shift from one core ministry to line ministries has not been well thought-out. This is fodder for accelerated corruption.

    • Tafirenyika

      This abundantly evinces the murkiness of the entire programme. You can tell that the shift from one core ministry to line ministries has not been well thought-out. This is fodder for accelerated corruption.

    • Tafirenyika

      This abundantly evinces the murkiness of the entire programme. You can tell that the shift from one core ministry to line ministries has not been well thought-out. This is fodder for accelerated corruption.

    • Judas Iscariot

      After 6 months then they will be making amendments to the new amendments.Asi wati mukuamenda chete ZANU PF inyanzvi chaidzo.

    • Judas Iscariot

      After 6 months then they will be making amendments to the new amendments.Asi wati mukuamenda chete ZANU PF inyanzvi chaidzo.

  • moriartyO

    This is going to breed yet more unnecessary confusion. The ministers that are there now are loudmouths with absolutely little to no knowledge of the departments they are ‘responsible’ for

  • Dickens

    Makes sense. Good move. Government has listened at last. Nothing wrong with indigenisation. Let’s make it easy and attractive to in invest in Zimbabwe and not hard and unattractive. We need jobs for the thousands of unemployed youths. This could help. Of course we have to have measures to deal with corruption. But this is a positive move

  • Dickens

    Makes sense. Good move. Government has listened at last. Nothing wrong with indigenisation. Let’s make it easy and attractive to in invest in Zimbabwe and not hard and unattractive. We need jobs for the thousands of unemployed youths. This could help. Of course we have to have measures to deal with corruption. But this is a positive move

  • Dickens

    Makes sense. Good move. Government has listened at last. Nothing wrong with indigenisation. Let’s make it easy and attractive to in invest in Zimbabwe and not hard and unattractive. We need jobs for the thousands of unemployed youths. This could help. Of course we have to have measures to deal with corruption. But this is a positive move

  • nonsense

    Yes indeed the talk about amendments and then saying bring your investments, it will be safe, only we know how this governemnt operates once the businesses are productive – they turn around and seize with the big wigs taking over to reap where they did not invest time, effort or money. Ask Pachedu and his estate which was EPZ designated and all the farmers that invested in the agro-industry post-independence at this government’s invitation.

  • nonsense

    Yes indeed the talk about amendments and then saying bring your investments, it will be safe, only we know how this governemnt operates once the businesses are productive – they turn around and seize with the big wigs taking over to reap where they did not invest time, effort or money. Ask Pachedu and his estate which was EPZ designated and all the farmers that invested in the agro-industry post-independence at this government’s invitation.

  • nonsense

    Yes indeed the talk about amendments and then saying bring your investments, it will be safe, only we know how this governemnt operates once the businesses are productive – they turn around and seize with the big wigs taking over to reap where they did not invest time, effort or money. Ask Pachedu and his estate which was EPZ designated and all the farmers that invested in the agro-industry post-independence at this government’s invitation.

  • Simba

    Moving the responsibility to the line ministries without clearly defining the new thresholds for each sector will just create more confusion and fuel corruption. It would be best to leave the responsibility to the indigenisation ministry. Rather revise the required indigenisation thresholds per sector downwards in consultation with the line ministries. The new thresholds should then be gazetted clearly without any ambiguity so that investors clearly know what is required per sector. To prevent corruption, investors should not be required to negotiate indigenisation thresholds with anyone.

  • Simba

    Moving the responsibility to the line ministries without clearly defining the new thresholds for each sector will just create more confusion and fuel corruption. It would be best to leave the responsibility to the indigenisation ministry. Rather revise the required indigenisation thresholds per sector downwards in consultation with the line ministries. The new thresholds should then be gazetted clearly without any ambiguity so that investors clearly know what is required per sector. To prevent corruption, investors should not be required to negotiate indigenisation thresholds with anyone.

  • Simba

    Moving the responsibility to the line ministries without clearly defining the new thresholds for each sector will just create more confusion and fuel corruption. It would be best to leave the responsibility to the indigenisation ministry. Rather revise the required indigenisation thresholds per sector downwards in consultation with the line ministries. The new thresholds should then be gazetted clearly without any ambiguity so that investors clearly know what is required per sector. To prevent corruption, investors should not be required to negotiate indigenisation thresholds with anyone.

    • Marc

      @Simba – well articulated Sir

    • Marc

      @Simba – well articulated Sir

  • dubes

    indeginise communal lands too ,no more ma chief or ma thief give people true independence and title deeds

  • dubes

    indeginise communal lands too ,no more ma chief or ma thief give people true independence and title deeds

  • dubes

    indeginise communal lands too ,no more ma chief or ma thief give people true independence and title deeds

  • eddie

    Veduwe dai matipa mari dzechibage chedu chatakaendesa kuGMB

  • African

    I agree with Nyambuya in that there is need for an overall policy clarity at Government level.True we can’t have a one-size-fit-all policy, but there has to be some guidance from the central Government.

    My opinion is to do away with indigenisation, and instead mandate every company involved in farming, resources, and manufacturing sector to value add their products before exporting. By so doing we are not only creating employment but also making the investment climate in our country competitive–cornerstone for spurring sustainable economic growth.

  • Somadoda Shoko

    Why not just scrap the legislation? We all know that the goal was to enrich a few thousand well-connected individuals through assets access but for the benefit of millions just scrapp the damn thing to allow FDI inflows.

  • Somadoda Shoko

    Why not just scrap the legislation? We all know that the goal was to enrich a few thousand well-connected individuals through assets access but for the benefit of millions just scrapp the damn thing to allow FDI inflows.

  • Mimi

    Indigenization will just be hijacked by the Bigwigs because they tend to want to get their fingers in the till all the time. At this point I begin to miss my President to sort out these issues once and for all. Indigenization laws should be to aid those financially able (no matter who these people are) to create jobs not to just amass companies and run them down. The issue of judging one by colour has proved ineffective.

  • Mimi

    Indigenization will just be hijacked by the Bigwigs because they tend to want to get their fingers in the till all the time. At this point I begin to miss my President to sort out these issues once and for all. Indigenization laws should be to aid those financially able (no matter who these people are) to create jobs not to just amass companies and run them down. The issue of judging one by colour has proved ineffective.

  • tawanda

    Unfortunately this is not going to have any immediate effects. Knowing ZANU PF most investors are going to take a very long time to watch and see. Zanu is well known for shifting goal posts. We won’t be surprised if someone else says the opposite even today or tomorrow. Zanu has a long way to go to establish good trust with the investors. Investment is a win win deal. The investor gets something and you equally get something from it. If you are poor like Zim you have to compromise more. If we were the old better Zim we would hv to compromise less. Zimbabwe for Zimbabweans or Africa for Africans is a non statement. You have to share it with pple who help you enjoy the resources. The benefits are immense. The investors help you to have an economy even after the natural resources are gone.

  • tawanda

    Unfortunately this is not going to have any immediate effects. Knowing ZANU PF most investors are going to take a very long time to watch and see. Zanu is well known for shifting goal posts. We won’t be surprised if someone else says the opposite even today or tomorrow. Zanu has a long way to go to establish good trust with the investors. Investment is a win win deal. The investor gets something and you equally get something from it. If you are poor like Zim you have to compromise more. If we were the old better Zim we would hv to compromise less. Zimbabwe for Zimbabweans or Africa for Africans is a non statement. You have to share it with pple who help you enjoy the resources. The benefits are immense. The investors help you to have an economy even after the natural resources are gone.

  • JSMadhir’

    kwaaaaaa, talk about clueless

  • JSMadhir’

    kwaaaaaa, talk about clueless

  • Nyambirai Chihota

    My concern rather, is the unwarranted confusion this whole unnecessary legislation is causing. We also happen in the process to be wasting valuable time. VP Mnangagwa says one thing today, tomorrow it is Mushowe (I forgive him cause on his transfer he had not given himself time to study the dynamics which had taken place with the whole indigenisation legislation), now Chinamasa comes with another angle. One thing the investor hates is confusion. Let the powers that be sit down and decide conclusively, the way forward. We have altogether wasted time and resources on this legislation, it is time to move on. I understand, some of the Ministers are scared to go off-side or rather against the grain for fear of being thrown in the dust-bin. But if you are man enough, stand up for want you believe in and not be swerved by the wind. A situation we unfortunately, find ourselves in today. It is not about Z-PF it is about the economy.

  • Nyambirai Chihota

    My concern rather, is the unwarranted confusion this whole unnecessary legislation is causing. We also happen in the process to be wasting valuable time. VP Mnangagwa says one thing today, tomorrow it is Mushowe (I forgive him cause on his transfer he had not given himself time to study the dynamics which had taken place with the whole indigenisation legislation), now Chinamasa comes with another angle. One thing the investor hates is confusion. Let the powers that be sit down and decide conclusively, the way forward. We have altogether wasted time and resources on this legislation, it is time to move on. I understand, some of the Ministers are scared to go off-side or rather against the grain for fear of being thrown in the dust-bin. But if you are man enough, stand up for want you believe in and not be swerved by the wind. A situation we unfortunately, find ourselves in today. It is not about Z-PF it is about the economy.

  • Sekuru Murehwa

    some policies are better not there. just scrap it and let investors come. we need jobs we need food. this indegenizations has only brought suffering and only sufffering

    • maita

      Sekuru Murehwa zvenyu, hese indegenous business people don’t pay their workers, we go months without salaries but look at their life styles, you will understand why we are apprehensive when we say let us indegenise.

    • maita

      Sekuru Murehwa zvenyu, hese indegenous business people don’t pay their workers, we go months without salaries but look at their life styles, you will understand why we are apprehensive when we say let us indegenise.

  • Sekuru Murehwa

    some policies are better not there. just scrap it and let investors come. we need jobs we need food. this indegenizations has only brought suffering and only sufffering

  • Zakaman

    I dont know what Zanu pf and Kasukuwere were thinking when they initiated this anti-investors piece of law. Ill-timed, ambiguously written, dragging the nation including purported beneficiaries. It is not about its implementation, the legislation is unclear written by a grade 7

    • maita

      They thought they were fixing MDC yet they were destroying Zimbabwe.

    • maita

      They thought they were fixing MDC yet they were destroying Zimbabwe.

  • edward

    A failed rebel Chihara can not be called a bigwig publish the names and shame the bigwigs

  • edward

    A failed rebel Chihara can not be called a bigwig publish the names and shame the bigwigs

  • maita

    Just remove it and think again, maybe come up with another blueprint were locals are provided with some sort of loans to start their own factories rather than grabbing other people’s companies.

  • maita

    Just remove it and think again, maybe come up with another blueprint were locals are provided with some sort of loans to start their own factories rather than grabbing other people’s companies.

  • Vanoba Samare

    Where is stupid NIEEB in this set-up? My foot!!!

  • Vanoba Samare

    Where is stupid NIEEB in this set-up? My foot!!!

  • Vanoba Samare

    Where is stupid NIEEB in this set-up? My foot!!!

  • Anon

    Utter nonsense. Past plans, even new ones are not going to help indigenization. How much water can you squeeze out of a stone? Face reality about-turn on your Govt policy and just maybe you might survive starvation and couple of other unseen deadly hurdles.

  • Anon

    Utter nonsense. Past plans, even new ones are not going to help indigenization. How much water can you squeeze out of a stone? Face reality about-turn on your Govt policy and just maybe you might survive starvation and couple of other unseen deadly hurdles.

  • Anon

    Utter nonsense. Past plans, even new ones are not going to help indigenization. How much water can you squeeze out of a stone? Face reality about-turn on your Govt policy and just maybe you might survive starvation and couple of other unseen deadly hurdles.

  • Anon

    Utter nonsense. Past plans, even new ones are not going to help indigenization. How much water can you squeeze out of a stone? Face reality about-turn on your Govt policy and just maybe you might survive starvation and couple of other unseen deadly hurdles.

  • Anon

    Utter nonsense. Past plans, even new ones are not going to help indigenization. How much water can you squeeze out of a stone? Face reality about-turn on your Govt policy and just maybe you might survive starvation and couple of other unseen deadly hurdles.

  • Anon

    Utter nonsense. Past plans, even new ones are not going to help indigenization. How much water can you squeeze out of a stone? Face reality about-turn on your Govt policy and just maybe you might survive starvation and couple of other unseen deadly hurdles.

  • Chabvonga

    It does look like a climb down from the blanket 51%/49%, which is not practical.
    It is however good that the line Ministries should negotiate the thresholds on a case by case basis. The Indigenization Ministry should just keep a database and monitor implementation.
    The starting point with every prospective investor should be that we have an indigenization policy, but we are not gona put you in a box, we can negotiate the thresholds on a case by case basis.

  • Chabvonga

    It does look like a climb down from the blanket 51%/49%, which is not practical.
    It is however good that the line Ministries should negotiate the thresholds on a case by case basis. The Indigenization Ministry should just keep a database and monitor implementation.
    The starting point with every prospective investor should be that we have an indigenization policy, but we are not gona put you in a box, we can negotiate the thresholds on a case by case basis.