adminand is expected to double to $4 billion by end of the year, an official has said.
NIEEF, which is managed by the National Indigenisation and Economic Empowerment Board (NIEEB), houses shares acquired from various companies that have complied with the country’s indigenisation and empowerment laws.
The funds’ value on Friday shot up close to $2 billion after Zimbabwe’s largest miner, Zimplats, a subsidiary of global giant, Impala Platinum Holdings, complied with the empowerment laws by disposing 51 percent of its shares.
The transaction is the largest empowerment deal to date worth $971 million.
It followed hard on the heels of a similar one by Mimosa Platinum Mine which was worth $550 million.
NIEEB chairman (Retired) Lieutenant General Mike Nyambuya said the value of the fund was expected to double as more companies complied with the regulations.
“With the Zimplats transaction, the fund has amassed value in assets of close to $2 billion which is expected to grow to $4 billion with the expected acquisitions in other sectors of the economy this year,” Lt Gen Nyambuya said.
The NIEEB boss said government had since decided to use NIEEF as an equalisation fund for community share ownership trusts (CSOTs) established in areas that do not have any claim to minerals.
Several CSOTs with a combined value of around $110 million have been established in communities across the country.
The NIEEF, which is largely the financier of empowerment projects, is among other functions expected to provide start up capital for community empowerment projects as well as finance future empowerment transactions.
According to Lt Gen Nyambuya, more companies are expected to indigenise their operations this year.
NIEEB, he said, had since 2010 received over 1 300 indigenisation plans from companies across the economy, with only 350 having been approved.
Zimbabwe’s Indigenisation and Economic Empowerment Act seeks to improve participation of locals in the country’s economy as it tries to neutralise pre-independence policies which favoured foreign investors.
In terms of the law, locals are supposed to own at least 51 percent shareholding in major foreign owned companies across the economy.
The shares are sold at fair value. — New Ziana
Bongani Ndlovu
Online Reporter