adminOne of the examples cited is the apparent rift between Reserve Bank of Zimbabwe Governor Dr Gideon Gono and Youth Development, Indigenisation and Empowerment Minister Saviour Kasukuwere on the indigenisation thresholds for the baking sector.
At the same time, the Government seems to have shifted goalposts on the Essar deal by directing that Essar Holdings should enter into a joint venture ownership arrangement with the Zimbabwe Mining Development Corporation. This entails Essar ceding 51 percent of its equity to the parastatal in line with the indigenisation law.
The development appears to be a shift from an initial stance in which the Essar deal was said to be an exception to the indigenisation of foreign-owned firms.
In a statement, ZNCC president Mr Oswell Binha said policy inconsistency was stifling business and investor confidence in the economy.
“The continued lack of co-ordination on these issues is denting investor confidence and is certainly not in the interest of business. On a number of issues Government ministers have spoken in parallel with no convergence of viewpoints.
“We are appealing to the President, Prime Minister, Cabinet and relevant ministers to deal with, and send out a clear and consistent message on the two following issues in particular indigenisation and the Essar deal,” he said.
ZNCC called upon the Government to implement the indigenisation programme in a manner that takes cognisance of the long-term objectives of all key stakeholders including foreign investors.
“It is correct that indigenisation is a principle to ensure that indigenous Zimbabweans have a share of natural resources at individual, corporate and community level.
“However, the manner of implementation must take into account the long-term interests of all key stakeholders — current investors, Zimbabwe’s growth trajectory and foreign investors.”
The ZNCC president also urged the Government to expedite the Essar transaction by transferring the mine claims.
“The citizens of Midlands and the construction sector are the biggest beneficiaries of a functional Ziscosteel. We urge the relevant ministries expedite transfer of mine
claims, so that investment that has already been put in the project yields intended results,” he said.
“If there is a dispute on the value of shares transferred to the foreign investor, let this be sorted out while the company is running.”
Another analyst believes that some of the policy inconsistencies are largely reflective of the fragile state of the inclusive Government.
“A greater portion of the discord being emitted by policymakers in the current Government shows that there is too much competition for space and relevance which has, however, done some major damage to the economy.
“Potential foreign investors would be forgiven for thinking that Zimbabwe is not investment grade,” said the analyst.
Online Reporter