adminOliver Kazunga, Senior Business Reporter
THE government has concluded consultations aimed at strengthening and clarifying the process of implementing indigenisation and economic empowerment policy outside the resources sector.
Finance and Economic Development Minister, Patrick Chinamasa yesterday said this would pave the way for the announcement and gazetting of a new framework or template of procedures for implementing the policies in a manner that promotes investment.
“Consultations towards strengthening and clarifying the processes of implementing the indigenisation policies in the other sectors of the economy outside the resources sector have been completed.
“To this end, the Minister of Youth, Indigenisation and Economic Empowerment (Patrick Zhuwao) will be announcing and gazetting before Christmas the frameworks’ templates and procedures for implementing the indigenisation policies in a manner that both promotes investment and eliminates discretionary application of the law,” said Chinamasa.
He said the 51/49 shareholding ratio position on indigenisation in the resources sector has been clarified on several occasions by President Robert Mugabe.
Chinamasa said that policy thrust in the resources sector reflects the contribution of designated entities towards the 51 percent local shareholding to locals.
He said this would be effected through the resource being exploited and at no monetary cost to the government or the designated entities.
To demonstrate commitment to providing a secure environment for investment, Zimbabwe is a signatory to a number of Bilateral Investment Promotion and Protection Agreements (BIPPAs) with different countries.
To date, said Chinamasa the government has signed about 54 BIPPAs, which are at different stages of compliance with the country’s constitutional requirements.
“Sixteen BIPPAs are still under negotiation, three are awaiting signature, 19 are awaiting ratification and nine have already been ratified.
“The government has also reiterated its firm commitment to continue to negotiate BIPPAs with potential investment source countries in a bid to boost investor confidence, thereby attracting the much needed foreign direct investment,” he said.
The minister said the government was working to get outstanding Bilateral Investment Promotion and Protection Agreements (BIPPAs) with various countries signed.
It is hoped that the signing of BIPPAs would increase investor confidence through creating favourable investment conditions.
Online Reporter