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Prosper Ndlovu Deputy News Editor
THE Zanu-PF Politburo has endorsed the proposed re-alignment of indigenisation laws to boost investor confidence while retaining 51/49 percent equity structure on the exploitation of natural resources. Zanu-PF national spokesperson Cde Rugare Gumbo said Wednesday’s Politburo “discussed a number of issues around reviewing the indigenisation and economic empowerment model.”
He added: “What came out was that concerning the mining sector and exploitation of natural resources, the 51/49 percent ownership ratio remains unchanged.
“Concerning the manufacturing, financial and other sectors of the economy, it was resolved that those have to be negotiated by the parties involved.”
Cde Francis Nhema, the Youth Development, Indigenisation and Economic Empowerment Minister, “was directed to take the issue to a legal committee and come up with a legal position for the fine tuning of the policy.”
The re-alignment of the indigenisation policy could see indigenous people owning 100 percent of their natural resources, with investors recovering their initial investment and operational costs before the sharing of profits.
The reforms are set to usher in a new dispensation of a sectorial approach in the implementation of the indigenisation policy in line with the ideals of the economic blue-print, Zim-Asset, by removing bottlenecks from the previously perceived blanket approach.
Last week, Finance and Economic Development Minister Cde Patrick Chinamasa said Cabinet directed the urgent re-alignment of investment and empowerment laws so that they reflect a 100 percent ownership of natural resources by locals, with investors entering into profit-sharing agreements.
Announcing the proposed policy review two weeks ago, Information, Media and Broadcasting Services Minister Professor Jonathan Moyo said a Production Sharing Model (PSM) and a Joint Empowerment Investment Model (JEIM), had been identified as the foremost vehicles through which the indigenisation policy would now be implemented.
PSM is a broad cover for an assortment of production sharing agreements signed between governments and extraction companies. The agreements are popular in the oil-rich Middle East.
Following this model, Zimbabwe will take 100 percent ownership of mineral resources and agricultural land.
The Indigenisation and Empowerment Act of 2008 requires all foreign-owned businesses worth at least $500,000 to cede 51 percent shareholding to indigenous Zimbabweans.
Cde Gumbo said the Politburo also resolved that the Ministry of Lands and Resettlement headed by Dr Douglas Mombeshora should award permits to farmers under the A-1 resettlement scheme.
“We discussed farmers in the A-1 model and they are expected to be given permits for the occupation of their land. This will assist them in terms of having security for their land and being able to access financing for their projects,” said Cde Gumbo.
Cde Gumbo said discussion on preparations for the party’s December 2014 National Congress had been deferred. “This was purely an extra-ordinary meeting to discuss economic issues and indigenisation,” Cde Gumbo said.
Online Reporter