News / National
Government backtrack on indigenisation
24 Dec 2015 at 14:13hrs | Views
Government today gave a new deadline for foreign mines and banks to submit fresh plans on how to they would comply with the indigenisation laws.
March 2016 is the new cut off time frame, the previous deadline was January 2014.
There were press reports today that Government was to announce an overhaul and remove rough edges on its controversial indigenisation and economic empowerment policy.
According to a document titled Proposed Frameworks, Procedures and Guide for Implementing the Indigenisation and Empowerment Act, the cocktail of new measures will include empowerment credits and shareholding rebates depending on the extent to which businesses would have complied with the policy.
This means compliance is no longer just going to equity-based, but will also include other considerations like supporting the country's economic objectives, empowering society by providing or reinforcing critical economic linkages, employment, value-addition and corporate social responsibility. Components of the supply-side model will also be incorporated into the policy.
Finance Minister Patrick Chinamasa said in a statement today "All companies that have not yet submitted their indigenisation implementation plans as required by the Act should submit their applications by the new deadline of 31 March 2016.
Existing foreign-owned firms could continue operating for up to five years, including a possible extension, but would be forced to pay an "indigenisation compliance levy as a trade-off for non-compliance."
March 2016 is the new cut off time frame, the previous deadline was January 2014.
There were press reports today that Government was to announce an overhaul and remove rough edges on its controversial indigenisation and economic empowerment policy.
This means compliance is no longer just going to equity-based, but will also include other considerations like supporting the country's economic objectives, empowering society by providing or reinforcing critical economic linkages, employment, value-addition and corporate social responsibility. Components of the supply-side model will also be incorporated into the policy.
Finance Minister Patrick Chinamasa said in a statement today "All companies that have not yet submitted their indigenisation implementation plans as required by the Act should submit their applications by the new deadline of 31 March 2016.
Existing foreign-owned firms could continue operating for up to five years, including a possible extension, but would be forced to pay an "indigenisation compliance levy as a trade-off for non-compliance."
Source - Zimbabwe Independent/ Reuters
