'Zimbabwe will forge ahead with its indigenization,' says Nhema

Zimbabwe will forge ahead with its indigenization and empowerment drive while ensuring economic benefits to be spread widely but not just to a selected few, a Cabinet minister said.

Newly appointed Indigenization and Economic Empowerment Minister Francis Nhema told Xinhua in an exclusive interview that the indigenization – which requires foreign companies to cede 51 percent of the share-holding to locals – was meant to empower Zimbabweans and that the process would be taken in considering all companies, the different sectors they were involved in and how best Zimbabweans could benefit.

"We have a law which stipulates in various categories the time- frame by which companies are supposed to comply, full-stop," said Nhema.

According to the law, no investor with a gross company value of 1 million U.S. dollars can conduct business in Zimbabwe without partnering with indigenous Zimbabweans.

Analysts and some foreign companies have been worried that the policy, if not carried out cautiously, might hurt investors' sentiment, while others allege that only a selected group of the ruling elite were benefited.

A centerpiece of the ruling party's policies, the indigenization is expected to go full throttle after veteran President Robert Mugabe won with landslide in the July 31 elections, kicking his most formidable opponents out of a four- year-old inclusive government formed after the disputed 2008 polls.

Nhema, a former environmental protection minister, was widely considered to take a softer stance in indigenization compared to his predecessor.

But Nhema was reluctant to talk about possible waivers, saying that such a practice would spur some people to look for loopholes to avoid compliance. He said companies would rather stick to the letter of the law and not fall foul of it.

According to the law, there are 13 economic sectors earmarked for indigenization, include mining, manufacturing, construction, tourism, finance, transport, communication and energy, while the retail sector is 100 percent preserved for locals.

Some foreign-owned companies have submitted compliance proposals to the government for consideration, and those involved in mining have initially set up community share-ownership trusts in the areas they operate.

Some proposals have been rejected, while others have been treated as work in progress.

Presenting his vision, Nhema said that greater focus would be placed on the youths so that they were enabled to participate in the mainstream economy through capacity building; with the thrust being on economic empowerment, creation of wealth and job creation.

"If indigenization helps us to achieve that, so be it," he said.

Roughly 70 percent of Zimbabwe's 13 million population are under the age of 35. While the unemployment rate stands at only 9 percent, many do not have stable jobs, far fewer with decent jobs. A survey earlier this year shows only 4 percent of the working population have monthly salaries over 800 U.S. dollars.

The minister said with earnings from the indigenization, the country's youths would be trained in the various aspects of agriculture. Those who would have dropped out of school at secondary level would be given courses in areas such as information technology, micro-finance and book-keeping so that they could either start their own small businesses or find it easier to get employed.

"That is the category this ministry will be looking at to ensure that they have skills, they are empowered, they have hope and have access to a decent life," he added.

Nhema also pledged that the information on who benefitted from the indigenization would be disclosed to ensure transparent and fair opportunities for all Zimbabweans.

"A register will be kept and at some point it will be opened to the public," he said.