Mugabe reverses on indigenisation

President Robert Mugabe has taken a surprise retraction on the 51% indeginisation programme.

Speaking at the independence celebration ceremony at the National Sports Stadium in Harare today, Mugabe said the indeginisation programme exempts foreign investors who bring in their own resources to invest in the country. Mugabe said the indigenisation policy only applies to investors that seek to use Zimbabwean natural resources as raw material which is a far cry from the original implementations of the indigenisation policy.

"Now in implementing the indigenisation programme there has been some confusion. We have said where big companies have been established mainly on the basis of our natural resources, mining agriculture, manufacturing we demand Zimbabwe...should have 51%, but if a company establishes itself and is getting raw materials from outside and the materials are not Zimbabwean...we can not demand 51% you can only negotiate with the company the usual way....to establish the percentages, we can not demand 51%," explained Mugabe.

Somehow contrary to the president's explanation, the indigenisation act as implemented and proclaimed by Mugabe in 2008 against massive resistance from the MDC factions in parliament, all direct foreign investment has been subjected to the 51% policy. This policy according to the confederation of Zimbabwean Industries has been chasing away the much needed foreign investment in the country leading to mass closure of companies in Zimbabwe.

Recently at the burial of national hero, Brigadier Misheck Tanyanyiwa, Mugabe disagreed with Mines Minister Walter Chidakwa that platinum refinery companies were exemptable from the indigenisation policy.

"The government is simply saying that the guiding principle is 51/49 percent but if the investment does something to this country that can convince us to graduate or move away from the 51/49 percent, we will do so," Chidhakwa had said during a tour of the Zimplats operations late last month.

"And I think that in so far as in establishing a platinum refinery in Zimbabwe is concerned, yes, I think there is that flexibility."

Not so, said Mugabe as he addressed mourners during the burial of national hero Brigadier- General Misheck Tanyanyiwa at the Heroes Acre in Harare recently.

"I have heard in some quarters that there can be exceptions but I am saying no. We are saying 51/49 percent. It's very clear, that is our stand," said the veteran Zanu PF leader.

The President's statement at the National Stadium today is certainly bound to cause further confusion to the indigenisation policy which was ZANU PF's election manifesto underlying statement.