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INVESTORS have no reason to “lose sleep” over indigenisation regulations as the government is open to negotiations in their implementation, a Cabinet minister has said.
Speaking in Bulawayo last Friday, Economic Planning and Investment Promotion Minister, Simon Khaya Moyo, said indigenisation regulations were enacted for economic empowerment and should not be viewed as a barrier to progress.
“I don’t think we should be losing sleep over this. The 51/49 percent (company) share ownership ratio never meant that we can’t discuss. We know many companies who are yet to comply but they’re operating freely. We know that responsible ministries are allowed to discuss compliance issues with companies,” said Khaya Moyo.
“The major issue with 51/49 pertains to mining because there is no point in extracting minerals and leaving holes with no benefit to locals.”
He was responding to a question from participants during a business meeting who sought clarity on the effect of empowerment laws on foreign direct investment.
The minister said the government set up the Zimbabwe Investment Authority (ZIA) to address investor concerns in any sector and explain any areas that need clarity.
He, however, said the government was very cautious hence the creation of a law to ensure unscrupulous investors were brought to account.
Historical experience has shown some big corporates siphoned billions of the country’s mineral wealth and got away with it because of the absence of proper legislation.
“We’ve to go step by step in these matters. Each line ministry will explain their way in terms of a particular investment,” Khaya Moyo added.
He challenged Zimbabweans to take drastic measures to curb corruption, which he said was a major barrier to progress.
The minister said Zimbabwe was a rich country in terms of natural resources.
He said his ministry would soon launch a global campaign to entice investors to set up shop in Zimbabwe and help improve the country’s economy.
Khaya Moyo urged Zimbabweans to play their role and partner government in bringing about the desired economic transformation.
He said the attainment of Zim-Asset economic target of 7,1 percent growth by 2018 was possible as long as the nation works together.
The minister admitted to some delays in implementing development programmes due to several factors and pledged government’s commitment to improved operations going forward.
“Industry and government are partners and this idea of us and them won’t work. We must learn to work together and respect each other,” he said.
Online Reporter