adminmining unit Freda Rebecca and has directed it to come up with a revised plan that complies with the law.
Several other foreign-owned mining and non-mining companies that submitted indigenisation plans below requirements of the empowerment legislation also received a two-week ultimatum to come up with revised plans.
The London Alternative Investment Market-listed conglomerate said: “Discussions between management and the relevant authorities in this regard are ongoing and shareholders will be advised of any developments.”
“Shareholders should note that several other companies from the mining, financial and industrial sectors in Zimbabwe, have received letters similar to the one received by Freda Rebecca,” said Mwana Africa in a statement.
Foreign-owned mining companies with a net asset value above US$1 million are required in terms of the Indigenisation and Empowerment Act to sell at least 51 percent of their shareholding to indigenous investors.
Government’s drive to localise shareholding in foreign-owned companies is aimed at economically empowering previously marginalised Zimbabweans by ensuring they participate in mainstream economic activities.
Other high profile foreign-owned mining firms that have been given two weeks to provide regularised empowerment plans include Zimplats, Mimosa Mining Company, Murowa Diamonds, Duration Gold and Blanket mines.
Non-mining firms British America Tobacco, food giant Nestle and Cargill Zimbabwe were also affected are required to respond in two weeks or risk licence cancellation with Government assuming ownership. In total 14 companies have to date been directed to draw up acceptable indigenisation roadmaps.
Affected companies are required by law under the General Notice 114/2011 to submit indigenisation plans detailing how they intend to meet the 51 percent direct equity shareholding by locals within the next five years.
Youth Development, Indigenisation and Empowerment Minister Saviour Kasukuwere told a Confederation of Zimbabwe Industries congress last month that 700 foreign-owned firms had submitted indigenisation plans.
Of these, 175 were mining companies which had previously proposed that they were only prepared to sell 26 percent direct equity to locals, while the balance adding to 51 percent would be met through social credits.
This was rejected by Government, which said credits could not be used to meet indigenisation thresholds.
Online Reporter