By Terrence Mawawa| President Emmerson Mnangagwa is moving to severely alter Robert Mugabe’s controversial Indigenisation Act which blocked foreigners from investing unless they cede 51% of their total shareholding.
Analysts had for years called for this Act to be repealed.
The development was revealed by Finance Minister Patrick Chinamasa in his budget which included the new bill proposal. (FULL LIVE REPORT & ANALYSIS TO FOLLOW ON ZimEye.com).
The proposed Finance Bill now restricts the 51% shareholding factor to “diamonds and platinum. These two are now the only sub-sectors to be designated as ‘extractive.’
Accordingly, the proposed Amendments will confine the 51/49 Indigenisation threshold to only the two minerals, namely diamonds and platinum, in the extractive sector.
The 51/49 threshold will not apply to the rest of the extractive sector, nor will it apply to the other sectors of the economy, which will be open to any investor regardless of nationality.
The Reserved sector is only for Zimbabwean citizens, and for non-Zimbabweans, entry into the Reserved sector will only be by special dispensation granted by Government.
As we seek to attract both local and foreign investments, existing and potential investors become fully guided by the Amendments we seek to effect through the Finance Bill that is being brought to this August House.