Mnangagwa to relax Zimbabwe indigenisation threshold

The government is removing indigenisation thresholds for productive sectors of the economy in a move that will see more foreign companies setting up projects across the country, the Minister of Finance and Economic Development, Professor Mthuli Ncube has confirmed.

The second republic has set an agenda of economic transformation that entails the need to ensure more utilisation of existing projects across the country by removing challenges impacting mainly foreign investors.

While notable progress has been attained after the government relaxed the 51:49 percent local : foreign shareholding structure save for the diamond and platinum mining sectors, the government is  further relaxing the rules, according to Minister Ncube.

In an interview with Bloomberg Television in Washington, USA this week, Professor Ncube, hinted that the government plans to remove the existing indigenisation thresholds to increase foreign direct investment (FDI) inflows.

"We are not just stopping there but we are going further to ensure foreigners can control even up to 100 percent stake," he said.

Affirmative Action Group Advisor, Dr Davison Gomo said while the move to remove challenges to FDI inflows is a critical model, stakeholder consultation is equally needed to ensure satisfaction of both parties.

"It is a model that requires our input so that once it is there, everyone is satisfied," he said.

During the interview, Professor Ncube told Bloomberg that the Zimbabwean economy is on the right track to recovery

"Our fiscal discipline is paying dividends and we are happy with the progress to date," he said.

Presenting the 2019 national budget, Professor Ncube said Zimbabwe's economy is projected to grow by 3,1 percent this year compared to last year's 4 percent target due to subdued agriculture performance  and unfavourable weather conditions.