adminThe law faced resistance in its early days with the Government temporarily closing Caledonia Gold mine due to non-compliance.
Government is intensifying efforts to implement the Indigenisation and Economic Empowerment Act which stipulates that no foreign investor should own more than 49 percent of any business venture valued at $500 000 or more.
Mining companies such as Mimosa, Zimplats and Caledonia have since complied with the indigenisation regulations.
Implats, the South African company that owns Zimplats, recently agreed to transfer 51 percent of its shares to the Government in compliance with the indigenisation law.
Speaking at the Confederation of Zimbabwe Industries’ International Business Expo, Youth Development, Empowerment and Indigenisation Minister Saviour Kasukuwere said investors were beginning to fully understand the policy and its implications.
“A great number of the major mining firms have seen the light and are now complying with the policy because at first they thought we were not serious. Anglo Platinum is submitting its plan this week.
“Our minerals have a value contrary to some reports. Once exploited the minerals will not come back so we want stronger and sustainable partnerships for locals to benefit,” he said.
There has been a lot of misconception surrounding the policy as some sections of the Western media demonised it, equating it to nationalisation.
This however did not deter the government from implementing the policy.
Minister Kasukuwere said the policy was not meant to drive away investors but to support local industry and promote inclusive investment.
“Through this policy we want to improve domestic industry, not victimise foreign companies.
“Our resources are what oil is to the likes of Kuwait, Iran and Saudi Arabia. They have the value to develop this economy,” he said.
“Indigenisation is not nationalisation as most of you have been made to believe, instead we are saying share the proceeds, partner with the locals,” he said. — New Ziana.
Online Reporter