Chronicle Editor
Bruce Ndlovu, Sunday News Reporter
THE Government has struck off provisions of Section 36 of the Finance Act that had caused some misconception among some investors that the country was re-introducing the indigenisation law in the mining sector.
In joint statement, Minister of Finance and Economic Development, the Minister of Mines and Mining Development and the Minister of Industry and Commerce acknowledged the misconception that might have been caused by the wording of the insertion.
“It has come to Government’s notice that the amendment to the Indigenisation and Economic Empowerment Act [Chapter 14:33] (IEE Act) contained in the Finance (No 2) Act, 2020 (section 36) may have caused some misconception to some investors and other stakeholders in the Mining Sector.
“Government announced the policy position to remove the requirement for 51 percent of the shareholding of businesses involved in the extraction of Platinum and Diamonds to be owned through a designated entity. That requirement has been removed through the amendment to the IEE Act, in section 3(1). There are no minerals the extraction of which require a business extracting same to have 51 percent of its shareholding being owned by a designated entity. This is consistent with Government’s position that there is no mineral, the extraction of which, Government considers requires mandatory shareholding participation through a designated entity,” the statement read.
The offending insertion, government said, would therefore be deleted in line with the “Zimbabwe is Open for Business” mantra.
“The provision in Section 36 of the Finance (No 2) Act, 2020, to the effect that the Minister responsible for the IEE Act, may, in consultation with the Ministers responsible for Mines and Finance prescribe a mineral, the extraction of which would be subject to 51 percent shareholding by a designated entity, has been interpreted by some to represent a departure from Government’s stated position to open the mining sector to investment without the requirement for 51 percent of the shareholding being held by a designated entity.
“To enhance certainty in relation to investments in the Mining Sector, and consistent with Government policy, this insertion will be deleted. These amendments are designed to buttress the Mantra “Zimbabwe is open for business.”
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