Business / Companies
Foreign firms rush to indigenise Zimbabwean operations
18 Aug 2013 at 14:37hrs | Views
Hundreds of foreign-owned companies that have been defying indigenisation law compelling them to ensure at least 51 percent shareholding is held by Zimbabweans are now rushing to regularise their operations following Zanu-PF's emphatic victory in the July 31 elections.
This comes amid indications that the defiant firms were hoping an MDC-T victory would guarantee a reversal of the indigenisation and economic empowerment programme.
In an interview last week, National Indigenisation and Economic Empowerment Board (Nieeb) chief executive officer Mr Wilson Gwatiringa said his office received an avalanche of indigenisation plans over the past two weeks.
The full list of such companies could not be immediately made available.
"Yes, we can confirm we have been busy since soon after last month's elections. A lot of companies are coming through to regularise their operations," said Mr Gwatiringa.
"Most companies which earlier had a wait-and-see approach and also expected a different (poll) result are now falling over each other to submit their plans. They now want to comply with the laws of the land.
"As usual, we are processing them. I am sure you are aware that Minister (Saviour) Kasukuwere (outgoing Minister of Youth Development, Indigenisation and Empowerment) is on record as saying there will not be any sacred cows."
In 2008, Zimbabwe operationalised the Indigenisation and Empowerment Act.
In terms of the law, foreign-owned companies operating in the country are required to ensure that at least 51 percent of shareholding is in indigenous hands. While thousands of firms complied, many others were reluctant, ostensibly awaiting a poll outcome that would result in the reversal of the indigenisation policy.
Senior MDC-T officials were quoted as saying the party would do away with Zanu-PF empowerment policies.
Last week Kasukuwere said more than 1 000 foreign-owned companies have submitted indigenisation plans in line with the law.
He said nearly 500 plans, mainly from the manufacturing and mining sectors, have been approved.
This comes amid indications that the defiant firms were hoping an MDC-T victory would guarantee a reversal of the indigenisation and economic empowerment programme.
In an interview last week, National Indigenisation and Economic Empowerment Board (Nieeb) chief executive officer Mr Wilson Gwatiringa said his office received an avalanche of indigenisation plans over the past two weeks.
The full list of such companies could not be immediately made available.
"Yes, we can confirm we have been busy since soon after last month's elections. A lot of companies are coming through to regularise their operations," said Mr Gwatiringa.
"As usual, we are processing them. I am sure you are aware that Minister (Saviour) Kasukuwere (outgoing Minister of Youth Development, Indigenisation and Empowerment) is on record as saying there will not be any sacred cows."
In 2008, Zimbabwe operationalised the Indigenisation and Empowerment Act.
In terms of the law, foreign-owned companies operating in the country are required to ensure that at least 51 percent of shareholding is in indigenous hands. While thousands of firms complied, many others were reluctant, ostensibly awaiting a poll outcome that would result in the reversal of the indigenisation policy.
Senior MDC-T officials were quoted as saying the party would do away with Zanu-PF empowerment policies.
Last week Kasukuwere said more than 1 000 foreign-owned companies have submitted indigenisation plans in line with the law.
He said nearly 500 plans, mainly from the manufacturing and mining sectors, have been approved.
Source - sundaymail
