Business / Companies
Francis Nhema to meet banks over indigenisation
14 Oct 2013 at 05:01hrs | Views
INDIGENISATION minister Francis Nhema is set to meet foreign- owned banks operating in Zimbabwe to discuss a possible modification of the indigenisation policy.
Nhema told Southern Eye Business on the sidelines of the just-ended Confederation of Zimbabwe Industries (CZI) congress held in Bulawayo that the meeting on a date yet to be decided, would discuss ways banks could comply with the controversial policy.
"I would be meeting banks soon and as such I cannot say much now concerning the sector compliance with the law," he said. Nhema's predecessor Saviour Kasukuwere crossed swords with Reserve Bank of Zimbabwe governor Gideon Gono over the implementation of the policy.
Kasukuwere tried to press foreign-owned banks to cede 51% of their shares to locals while Gono urged caution saying the sector was too sensitive.
Foreign-owned banks operating in Zimbabwe include Standard Chartered, Barclays, Ecobank, Stanbic and MBCA - a unit of South Africa's Nedbank.
Nhema signalled that the government was ready to modify the policy in dealing with banks.
"We never said one size fits all with regards companies complying with indigenisation, we will be flexible," he said.
Finance deputy minister Samuel Udenge told the CZI congress that the government was working on modifying the indigenisation law to provide flexible terms on capital projects including those in water and energy sectors to attract foreign direct investment.
Udenge said the government would consider giving a reprieve to foreign companies starting capital projects in the sectors of energy and water at their initial implementation stages in a move aimed at attracting investment in the sectors.
Nhema told Southern Eye Business on the sidelines of the just-ended Confederation of Zimbabwe Industries (CZI) congress held in Bulawayo that the meeting on a date yet to be decided, would discuss ways banks could comply with the controversial policy.
"I would be meeting banks soon and as such I cannot say much now concerning the sector compliance with the law," he said. Nhema's predecessor Saviour Kasukuwere crossed swords with Reserve Bank of Zimbabwe governor Gideon Gono over the implementation of the policy.
Kasukuwere tried to press foreign-owned banks to cede 51% of their shares to locals while Gono urged caution saying the sector was too sensitive.
Nhema signalled that the government was ready to modify the policy in dealing with banks.
"We never said one size fits all with regards companies complying with indigenisation, we will be flexible," he said.
Finance deputy minister Samuel Udenge told the CZI congress that the government was working on modifying the indigenisation law to provide flexible terms on capital projects including those in water and energy sectors to attract foreign direct investment.
Udenge said the government would consider giving a reprieve to foreign companies starting capital projects in the sectors of energy and water at their initial implementation stages in a move aimed at attracting investment in the sectors.
Source - southerneye
