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President Mugabe shares a lighter moment with Vice President Joice Mujuru, Presidential Affairs Minister Didymus Mutasa (left), Finance Minister Patrick Chinamasa and Justice, Legal and Parliamentary Affairs Minister Emmerson Mnangagwa before the presentation of the National Budget in Parliament yesterday. — (Picture by Tawanda Mudimu)

Martin Kadzere Senior Business Reporter
GOVERNMENT has abolished the central role of the Ministry of Youth, Indigenisation and Empowerment in determining indigenisation compliance as it is now the responsibility of line ministries to negotiate with investors on compliance plans.

While the 51-49 percent ownership structure would still apply across all sectors, it would be on the basis of the assessment by the line ministry responsible for the sector that the compliance certificate in respect of the investment proposal would be issued by the ministry responsible for indigenisation and economic empowerment.

Finance and Economic Development Minister Patrick Chinamasa said this when he announced the 2015 National Budget yesterday. Previously, the Indigenisation ministry had sole responsibility of approving compliance on all investment proposals.

Analysts say line ministries are better positioned to understand the dynamics and challenges bedevilling their respective sectors and therefore are capable of making the appropriate compliance framework.

On new projects, Minister Chinamasa said such investment proposals would first be processed through the Zimbabwe Investment Authority. Thereafter, ZIA would forward the proposals to the line ministry responsible for the sector to make the assessment concerning compliance with the indigenisation and empowerment policy.

Similarly, the policy would apply to the existing or brown field investments and should be assessed for compliance by the line ministry without the need to pass through ZIA.

It would be on the basis of the assessment by the line ministry responsible for the sector or sub-sector that the compliance certificate in respect of the investment proposal would be issued by the ministry responsible for indigenisation and economic empowerment.

Minister Chinamasa said monitoring compliance with the laws was also the responsibility of line ministries while amendments to new position would be made through the Finance Bill.

The Minister said given the need to continue improving Zimbabwe’s investment climate in light of the need for both domestic and foreign investment, the Budget sought to further provide clarity on the indigenisation and empowerment framework.

“This will be in order to ensure consistency and predictability in Government’s engagement with stakeholders and investors,” said the Minister. “Accordingly, it is critical that we restate that the 51-49 percent ownership structure enshrined in the Indigenisation and Economic Empowerment Act applies across all sectors of the economy.