Empowerment credits discarded

of indigenisation thresholds, as communities where these companies operate will now get direct equity.

Mining companies had proposed to directly localise 26 percent stake, with the other 25 percent being covered under credits from social investments.
This would add up to 51 percent, which foreign-owned companies – including mines – are supposed to cede to the indigenous.
Instead of the empowerment credits, Youth Development, Indigenisation and Empowerment Minister Saviour Kasukuwere said the State, local communities, workers and management would have direct equity.

“As Government, we said ‘No to social credits’,” he said, in an address to an indigenisation indaba in Harare yesterday.
Earlier, Minister of Industry and Commerce Welshman Ncube had pointed out different approaches to the indigenisation empowerment laws.

“The indigenisation framework . . . is often contested and inadequately explained,” said Minister Ncube.
“Even where there is consensus (to empower the majority), we still don’t have the consensus on the modalities which results in Government having different voices when we explain the law. We need to speak with one voice.”

“What we want is 51 percent to be given to Zimbabweans. At least 10 percent (stake) should be given to communities where the (mineral) resources are found,” Minister Kasukuwere said.
He said the communities would be empowered to make decisions through appointment of board members to represent their interests.
“We would also want to see management and workers having direct interests while other shares would be held under the State Sovereign Fund.”

Minister Kasukuwere said Government has earmarked redistribution of concessions whose owners might not be able to develop them.
“We are not doing this because we don’t want our economy to grow,” he said.
“Let us all share the cake (national mineral resources) together.”

Contrary to conceptions that the indigenisation policy was meant to benefit certain top individuals, he said the process was addressing the economic imbalances and improving the welfare of the majority.
He likened it to the land reform, which has directly and indirectly benefited millions.
With regard to other sectors, Minister Kasukuwere said Government was studying recommendations from sectoral committees.

He said the empowerment laws were “clear” and urged companies to “adhere” to them.
Minister Ncube said it was imperative to empower those historically disadvantaged. But there was need to establish a national consensus.
Giving his own interpretations of the empowerment regulations, Minister Ncube described them as “aspirational” rather that “directive”, given the challenges that may be encountered in funding the exercise.”

The indaba was organised by a regional consultant firm, African Economic Development Strategies.
Stakeholders from the Government, private sector and civic organisations attended the event. There were also delegates from South Africa, under the auspices of Business Unit of South Africa and the Black Economic Empowerment.