Harare, Feb 12 (NNN-NEW ZIANA) — There is confusion in Zimbabwe’s inclusive government over implementation of the recently gazetted regulations on the implementation of the country?s Indigenisation and Economic Empowerment Act.

Economic Planning and Investment Promotion Minister Elton Mangoma told Parliament on Wednesday the gazetted Statutory Instrument putting in place the regulations was void while Youth Development, Indigenisation and Empowerment Minister Saviour Kasukuwere maintained the regulations remained in force.

The Youth Development, Indigenisation and Empowerment Ministry gazetted the regulations, which spell out how the country?s indigenisation law was to be implemented.

The regulations, which take effect from March 1 this year, require existing foreign owned companies to comply with the indigenisation threshold of 51 per cent local shareholding by the end of a five-year period.

They, among other stipulations, require that existing businesses with a threshold of 500,000 USD should within 45 days from March 1 2010 declare their shareholding status to the minister while new business would be required to follow suit within 60 days.

Companies not able to meet the 51 per cent threshold would be required to submit a plan on how they will meet the threshold within 45 days from March 1 while those with acceptable reasons will be given a 30-day extension.

It, however, emerged during a question and answer session in Parliament on Wednesday that there were disagreements in government on whether or not the regulations would be enforced.

Mangoma told the House of Assembly, after being asked how the regulations would affect investment in the country, that publication of the regulations had not gone through proper procedure but was a ?unilateral act? by the indigenisation minister.

He said the regulations were supposed to go through Prime Minister Morgan Tsvangirai as well as the Cabinet before they were gazetted.

“I have had consultations with the Prime Minister (Tsvangirai) who has indicated that the proper procedure will have to be followed,? he said.

Mangoma said the regulations had caused consternation within the investor community.
“There is no reason why we should be threatening investors in this country,? he said, adding that it was critical the subject of indigenisation be handled with care as Zimbabwe was trying to attract investment.

“The issue of indigenisation and ownership must be handled with care,” he said.
“Empowering one individual to hold 51 per cent is not empowering the rest of the people of Zimbabwe.”

Kasukuwere who was not yet in Parliament when Mangoma made the remarks, however, responded later, maintaining that the regulations remained in force. He said the Indigenisation and Economic Empowerment Act gave him the powers to put in place the regulations.

“It is in the interest of the people of Zimbabwe to become shareholders. I have put in place those regulations and those regulations stand,? Kasukuwere said. “Every minister administers laws under his ambit and does not necessarily have to consult,? he told the House.

The minister, however, said he had consulted ?his colleagues? as well as the Indigenisation and Economic Empowerment Board. “I have consulted with some of the colleagues, who for political reasons might not want to confirm that they were consulted,? the minister said.

Zimbabwe enacted the Indigenisation and Economic Empowerment Act, which stipulates that Zimbabweans must hold the majority shareholding in major sectors of the economy.

Under regulations published by the indigenisation ministry, some sectors such as agricultural production of food and cash crops, transport, retail, wholesale trade, tobacco grading among others have been set-aside for locals with outsiders who want to venture into such areas requiring government permission. — NNN-NEW ZIANA

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