adminPlanning and Investment Promotion Minister Tapiwa Mashakada, said yesterday.
Minister Mashakada was responding to questions in the House of Assembly on the response of investors to indigenisation regulations.
The minister said between January and June this year, investors had made inquiries especially in the mining sector valued at over US$1 billion.
“We have told investors that the indigenisation law is flexible and this is shown by the ESSAR deal in which it got 54 percent in Zisco and 80 percent in the iron ore deposits.
“Therefore investors should come and engage, this law is flexible,” he said.
Minister Mashakada said some investors had adopted a wait and see attitude as Government forges ahead with the implementation of the Indigenisation and Empowerment Act.
The law requires foreign owned companies with minimum capital of US$500 000 to have 51 percent local ownership.
Minister Mashakada said Government would not expropriate shares in companies but would buy them at full value. He said some locals especially in capital intensive ventures were also expressing concern that they were failing to attract partners because of the indigenisation law.
“There are also domestic investors that are saying there are some projects they cannot implement because of shortage of money in the economy,” he said.
The minister said conflicting statements on the programme from members of the inclusive Government were also causing confusion among investors.
The MDC-T has been at the forefront of making conflicting statements on the programme.
In May, the MDC-T leader Prime Minister Morgan Tsvangirai supported the programme, while attending a meeting of the World Economic Forum in South Africa but has of late been critical of the policy saying it scared away investors.
Online Reporter