Zimbabwe’s indigenisation conundrum – a timeline

October 15, 2014 – Indigenization Minister Francis Nhema says only one foreign-owned banking institution operating in the country had not complied with country’s local ownership requirements

December 2014 – Newly appointed Indigenisation Minister Chris Mushowe says Zimbabwe will not beg for foreign investment and urges foreign investors to comply with the local ownership law. Later that month, during the 2015 National Budget presentation, Finance Minister Patrick Chinamasa announces that the indigenisation law would be amended to give more discretion to line ministries “that are more knowledgeable about the dynamics of sectors which come under their responsibility.

January 15, 2015 – Government amends the Act, giving businesses 60 days to amend indigenisation agreements with the state, and also empowers line ministers to assess plans and issue certificates of compliance to business.

September 2015 – Mugabe appoints Patrick Zhuwao, his nephew, to the indigenisation portfolio

December 2015 – Finance Minister Patrick Chinamasa and Indigenization Minister Patrick Zhuwao have a public fallout over implementation of the law. A planned joint press conference to clarify the law degenerates into farce and Chinamasa later releases a unilateral statement outlining ‘revisions’ to the law, which is published in the Government Gazette under his signature.

January 2016 – Finance Minister Patrick Chinamasa and Indigenization Minister Patrick Zhuwao declare a truce, hold a joint press conference announcing a new framework for implementation of the law. While there were no fundamental differences between the two sets of guidelines, the revised text dropped, from the list of objectives for the new guidelines, a reference to “encourage private sector investment” from Chinamasa’s earlier public notice.

An expanded list of ‘objectives’ in Zhuwao’s text also gave priority to raising cash for a raft of state-run funds and firms.

March 22, 2016 – Zhuwao announces that Cabinet unanimously resolved that line ministries would revoke the operating licences of all firms deemd to be non-compliant with the Indigenisation Act after a March 31 2016 deadline.

March 31, 2016 – Minister Zhuwao backs off threats to take precipitous action and close foreign firms deemed to be non-compliant with the country’s local ownership law, but accuses the central bank governor of misleading foreign banks over the regulations.

April 3, 2016 –  Finance minister Patrick Chinamasa releases a statement stating that foreign banks operating in Zimbabwe have complied with the country’s indigenisation law, prompting Indigenization Minister Zhuwao to issue a counter-statement accusing Chinamasa of trying to shield non-compliant banks from complying with the law.

April 12, 2016 – President Mugabe releases statement acknowledging the confusion created by conflicting positions by his officials on the indigenisation policy and indicating the government could amend the law to reflect a new relaxed position on mine and bank ownership. Existing foreign-owned mines could maintain current shareholding on condition they keep upwards of 75 percent of their earnings in the country. Banks could gain exemption from local ownership rules if they supported key economic sectors, Mugabe said.

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