I have not seen Gono's banking sector empowerment model - Kasukuwere

Indigenisation minister Saviour Kasukuwere claims he has not seen RBZ governor Gideon Gono's banking sector empowerment model. The Zanu-PF minister, who has been on a warpath to seize banks including Barclays, Standard Chartered Bank and others, went even further to say he would not bother to look at the paper as he had no time to read it.

"What model? I have not seen it… and besides I don't read models," Kasukuwere said, in a clear sign of disdain. Gono and Kasukuwere have differed sharply on the implementation of the controversial localisation laws, with the former arguing for caution and the latter pushing for a more aggressive approach to the indigenisation of the key sector.

In his model, the Central Bank boss proposes a supply-chain based approach as opposed to the equity seizures.

Meanwhile, RBZ governor Gideon Gono says mines will face liquidity challenges under the 51% ownership and argues another model should be adopted instead. In his "supply-chain based indigenisation" proposal Gono addresses the issue of avoiding company closures due to the high cost of borrowing.

The proposals promotes employment creation through the support of new projects and expansion of existing ones, providing funds for capital expenditure and stimulated additional export earnings.

The biggest expenditure in the mining industry is in purchases and operations, he says arguing therefore Zimbabweans should be actively involved in that area, providing a service so that they get to benefit more than what they would get from mere profits.

Under the 51% indigenisation takeover, not all profits will be  directed to dividends, and indigenous owners would get less than 5.6% of the profits.

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