Deputy Minister adds to the confusion on indigenisation


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The Deputy Minister of Indigenisation and Economic Empowerment Mathias Tongofa yesterday added to the confusion on government policy on indigenisation when he told parliament that the law stipulated that all companies in Zimbabwe should ensure that 51 percent of the shares are under the indigenous people in Zimbabwe.

Tongofa said his ministry enforced the law and any amendments to the law would have to be tabled in parliament first.

“I would like to tell the hon. member that we administer the Act as it is. We do not administer pronouncements in the media. Any new changes will be tabled to you and you will amend the Act if we are to amend it,” he said in response to a question from Kambuzuma Member of Parliament Willias Madzimure.

Madzimure had asked the deputy minister to explain the policy because there now seemed to some confusion.

“We have heard several conflicting pronouncements on indigenisation. Some are saying the 51 percent is now reserved to resource areas like mining, some are saying banks will be spared and others are saying in manufacturing, it is up to the individual investors. Can you clearly spell out the actual government policy on indigenisation and which sectors will get what percentage?” Madzimure asked.

Last week, Indigenisation Minister Francis Nhema evaded answering the question when it was asked by former deputy Minister David Chapfika. Nhema was protected by Speaker Jacob Mudenda who said there was no need for him to explain because President Robert Mugabe had made at least two statements on the policy.

Mugabe said Zimbabwe was now open for business.

 

Q & A:

 

MR. MADZIMURE: Mr. Speaker Sir, my question is directed to the Minister of Youth, Indigenisation and Economic Empowerment and in his absence, I direct it to the Deputy Minister. We have heard several conflicting pronouncements on indigenisation. Some are saying the 51% is now reserved to resource areas like mining, some are saying banks will be spared and others are saying in manufacturing, it is up to the individual investors. Can you clearly spell out the actual Government policy on indigenisation and which sectors will get what percentage?

THE MINISTER OF YOUTH, INDIGENISATION AND ECONOMIC EMPOWERMENT (MR. TONGOFA): Thank you Mr. Speaker Sir. I would like to tell the hon. member that we administer the Act as it is. We do not administer pronouncements in the media. Any new changes will be tabled to you and you will amend the Act if we are to amend it. I thank you.

MR. MUNENGAMI: Thank you Mr. Speaker. I think the hon. member was very clear in wanting the Minister to explain but you only said you administer the Act. What does the Act say? Thank you.

MR. TONGOFA: Thank you Mr. Speaker Sir. I think the hon. member is aware of the Act. It stipulates that all companies in Zimbabwe should ensure that 51% of the shares are under the indigenous people in Zimbabwe. That is the Act and that is what it says.

(20 VIEWS)

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Charles Rukuni
The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

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