News / National
There is nothing wrong with a law that empowers Zimbabweans: Tsvangirai
10 Apr 2011 at 06:31hrs | Views
The proposed indigenisation legislation will not expropriate ownership in foreign mining firms, says Prime Minister Morgan Tsvangirai.
"We are talking about existing business telling us how they intend to set thresholds, industry by industry, within a period of 10 years to bring the local indigenous people into the economy. There is nothing wrong in empowering citizens," Tsvangirai said.
The Chamber of Mines says the regulations gazetted last month essentially fast track indigenization, without taking into consideration the negative consequences on investment and growth. Foreigners regularly cite the law as their main concern about investing in Zimbabwe, which is desperate for external capital to rebuild an economy shattered by decades of chronic mismanagement and decline under President Robert Mugabe.
The law is silent on how payment for surrendered shareholding would be made, and observers have express concerns that the regulations would allow another land grab – this time of white-owned businesses.
But Tsvangirai said: "This is the ambiguity of the coalition. Really what I am explaining is that there is nothing wrong in a law that empowers the majority of citizens to be part of the economy. What is coming out is that this is another land reform. That is not the case. I want to say, and this is not just political rhetoric, the indigenisation regulations do not threaten existing or new business."
Mugabe has said the regulations would target foreign mining firms from countries that have imposed targeted measures against him and his henchmen and an arms embargo against Zimbabwe – to prevent him procuring armaments with which to further oppress Zimbabweans.
"We are talking about existing business telling us how they intend to set thresholds, industry by industry, within a period of 10 years to bring the local indigenous people into the economy. There is nothing wrong in empowering citizens," Tsvangirai said.
The Chamber of Mines says the regulations gazetted last month essentially fast track indigenization, without taking into consideration the negative consequences on investment and growth. Foreigners regularly cite the law as their main concern about investing in Zimbabwe, which is desperate for external capital to rebuild an economy shattered by decades of chronic mismanagement and decline under President Robert Mugabe.
The law is silent on how payment for surrendered shareholding would be made, and observers have express concerns that the regulations would allow another land grab – this time of white-owned businesses.
But Tsvangirai said: "This is the ambiguity of the coalition. Really what I am explaining is that there is nothing wrong in a law that empowers the majority of citizens to be part of the economy. What is coming out is that this is another land reform. That is not the case. I want to say, and this is not just political rhetoric, the indigenisation regulations do not threaten existing or new business."
Mugabe has said the regulations would target foreign mining firms from countries that have imposed targeted measures against him and his henchmen and an arms embargo against Zimbabwe – to prevent him procuring armaments with which to further oppress Zimbabweans.
Source - Byo24News
