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Roberta Katunga and Dumisani Nsingo, Senior Reporters
THERE is no investor that was turned away this year due to failure to comply with the country’s indigenisation policy, which requires foreign firms to cede 51 percent of their shares to locals, an official said.
Addressing delegates during a three-day Local Government Economic Development Forum at the Zimbabwe International Trade Fair exhibition centre last week, Zimbabwe Investment Authority (ZIA) chairman Dr Nigel Chanakira said the authority engaged about 90 foreign investors this year.
“Most of the critics of the indigenisation policy are uninformed and base their assertions on history. If an investor applies through the ZIA board, we will facilitate, we do not turn away investors but negotiate on a case to case basis,” said Dr Chanakira.
He said the authority was working on ensuring that an investment licence was issued within a day compared to the current 49 days as well as producing a booklet aimed at simplifying the indigenisation policy.
“There are a lot of misconceptions on that particular law that has seen investors shying away. We will produce a simple booklet called Indigenisation in Zimbabwe,” said Dr Chanakira.
He said it was of paramount importance for each city and town to create an enabling environment to attract foreign investment and singled out Harare and Bulawayo for having impressive brochures outlining investment opportunities that exist within their confines.
Dr Chanakira said there was growing interest by South African investors to invest in the country owing to its use of a relatively stable currency in the form of the US dollar.
Indigenisation, Empowerment and Youth Development Minister Patrick Zhuwao said the indigenisation policy was pivotal towards the turnaround of the country’s economy and as such Government would not abandon it.
“The indigenisation policy shall never stop as it is the one that could stabilise the Zimbabwean economy. Depending on foreign investors destabilises the economy that’s why we are even encouraging people to buy Zimbabwean products and invest into their own businesses to boost the economy,” he said.
Competition and Tariff Commission chairman Mr Dumisani Sibanda said Foreign Direct Investment (FDI) inflows into the country would only increase in line with the ability of local firms to invest successfully.
“The country should not expect foreigners to invest in the country when locals are not able to invest. We have witnessed many intentions to invest in the country with little operationalisation of these intentions. Policy makers should create a conducive environment for local players, this will be a magnet for FDI,” he said.
The indigenisation law compels foreign-owned companies to cede at least 51 percent of their shareholding in locally-based companies to locals or specific entities designated by Government.
The Ministry of Macro-Economic Planning and Investment Promotion is in the process of drafting an investor handbook. The handbook would help in giving clarity to investors on the country’s political, economic, demographic, cultural and doing business environment. It would also outline the investment opportunities available to investors as well as the policies, regulations and incentives that can be accessed by investors. The handbook is expected to assist all ministries and Government agencies responsible for promoting investment to speak with one voice while investors coming to Zimbabwe would be given the handbooks.
Online Reporter