Tuesday, 23 Aug 2011
Reuters reported that Zimbabwe’s government has given foreign companies including miners and banks a 14 day ultimatum to submit plans on how they propose to transfer majority stakes to local owners or risk losing permits.
However, immediately thereafter the country’s central bank governor Mr Gideon Gono launched a scathing attack on the minister responsible for the indigenization policy saying the threats could irreparably harm the nerve centre of the recovering economy.
Before a new unity government in 2009 Zimbabwe economy had shrank by as much as half over the preceding decade amid hyperinflation, property seizures and civil unrest. The country is the number two platinum producer in the world and rich in gold and diamonds.
Mr Gono’s comments is a clear sign of the divisions that still exists within the unity government between the opposition MDC and President Robert Mugabe who has been leader of the country for more than 30 years and championed the legislation which was enacted in 2008.
Under Zimbabwe’s indigenization policy mining companies were granted until the beginning of June to submit proposals about transferring majority ownership but the government then rejected 175 of these plans from mines because they had proposed selling only a 25% stake and making social responsibility investments to obtain credits for the remainder.
The targeted firms include platinum miners Zimplats, which is majority owned by Impala Platinum (Implats), and Mimosa, an Implats' 50:50 joint venture with Aquarius Platinum.
Others include Rio Tinto's Murowa diamond mine, British American Tobacco and local units of British banks, Standard Chartered and Barclays.
Indigenisation and Empowerment Minister Saviour Kasukuwere wrote to the companies on July 28, informing them they had failed to provide acceptable details of how they propose to transfer 51 percent shareholdings to local people within the five years stipulated by law, the state controlled Herald newspaper said.
The newspaper reported that the companies risk losing their operating licences if they do not submit plans on transfer of ownership that are deemed acceptable.
(sourced from Reuters)
Reuters reported that Zimbabwe’s government has given foreign companies including miners and banks a 14 day ultimatum to submit plans on how they propose to transfer majority stakes to local owners or risk losing permits.
However, immediately thereafter the country’s central bank governor Mr Gideon Gono launched a scathing attack on the minister responsible for the indigenization policy saying the threats could irreparably harm the nerve centre of the recovering economy.
Before a new unity government in 2009 Zimbabwe economy had shrank by as much as half over the preceding decade amid hyperinflation, property seizures and civil unrest. The country is the number two platinum producer in the world and rich in gold and diamonds.
Mr Gono’s comments is a clear sign of the divisions that still exists within the unity government between the opposition MDC and President Robert Mugabe who has been leader of the country for more than 30 years and championed the legislation which was enacted in 2008.
Under Zimbabwe’s indigenization policy mining companies were granted until the beginning of June to submit proposals about transferring majority ownership but the government then rejected 175 of these plans from mines because they had proposed selling only a 25% stake and making social responsibility investments to obtain credits for the remainder.
The targeted firms include platinum miners Zimplats, which is majority owned by Impala Platinum (Implats), and Mimosa, an Implats' 50:50 joint venture with Aquarius Platinum.
Others include Rio Tinto's Murowa diamond mine, British American Tobacco and local units of British banks, Standard Chartered and Barclays.
Indigenisation and Empowerment Minister Saviour Kasukuwere wrote to the companies on July 28, informing them they had failed to provide acceptable details of how they propose to transfer 51 percent shareholdings to local people within the five years stipulated by law, the state controlled Herald newspaper said.
The newspaper reported that the companies risk losing their operating licences if they do not submit plans on transfer of ownership that are deemed acceptable.
(sourced from Reuters)
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