Business / Local
Zimbabweans US$3 billion worth of shares from foreign-owned companies
12 Oct 2014 at 10:26hrs | Views
More than 1 089 applications since 2010 have been processed according to the latest National Indigenisation and Economic Empowerment Board compliance report.
This has enabled Zimbabweans to secure US$3 billion worth of shares in over 1 000 foreign-owned companies.
The report also reveals that 600 companies in various sectors transferred US$535 million worth of shares to local hands.
These sectors include energy (US$6 million), transport (US$40 million), services (US$3 million), real estate (US$4 million), financial services (US$16 million), and construction (US$57 million).
The law compelled mining companies to work towards indigenising within a year of the gazetting of Statutory Instrument 21/2010.
The manufacturing sector should comply within four years, and the remaining sectors within a year.
Every affected company is required to submit to Government plans detailing its share transfer structure.
Once authorities approve, the company should apply for an indigenisation compliance certificate.
Applicants must assist vocational training centres and enable youths to acquire entrepreneurial skills in setting up their own enterprises or secure employment.
Youth Development, Indigenisation and Economic Empowerment Minister Francis Nhema recently told The Sunday Mail that the ministry was focusing on skills development.
Business analyst Mr Sebastian Mubvumbi said: "It is very important for the country to benefit from its resources, but the most important thing is for the benefits to cascade down to the village and ordinary man in the street. We don't want a situation where only the well-connected benefit at the expense of the majority."
This has enabled Zimbabweans to secure US$3 billion worth of shares in over 1 000 foreign-owned companies.
The report also reveals that 600 companies in various sectors transferred US$535 million worth of shares to local hands.
These sectors include energy (US$6 million), transport (US$40 million), services (US$3 million), real estate (US$4 million), financial services (US$16 million), and construction (US$57 million).
The law compelled mining companies to work towards indigenising within a year of the gazetting of Statutory Instrument 21/2010.
The manufacturing sector should comply within four years, and the remaining sectors within a year.
Every affected company is required to submit to Government plans detailing its share transfer structure.
Once authorities approve, the company should apply for an indigenisation compliance certificate.
Applicants must assist vocational training centres and enable youths to acquire entrepreneurial skills in setting up their own enterprises or secure employment.
Youth Development, Indigenisation and Economic Empowerment Minister Francis Nhema recently told The Sunday Mail that the ministry was focusing on skills development.
Business analyst Mr Sebastian Mubvumbi said: "It is very important for the country to benefit from its resources, but the most important thing is for the benefits to cascade down to the village and ordinary man in the street. We don't want a situation where only the well-connected benefit at the expense of the majority."
Source - SundayMail
