"Permanent sovereignty over natural resources"

UN General Assembly resolution 1803 (XVII) of 14 December 1962, "Permanent sovereignty over natural resources"

The General Assembly,

Recalling its resolutions 523 (VI) of 12 January 1952 and 626 (VII) of 21 December 1952,

Bearing in mind its resolution 1314 (XIII) of 12 December 1958, by which it established the Commission on Permanent Sovereignty over Natural Resources and instructed it to conduct a full survey of the status of permanent sovereignty over natural wealth and resources as a basic constituent of the right to self-determination, with recommendations, where necessary, for its strengthening, and decided further that, in the conduct of the full survey of the status of the permanent sovereignty of peoples and nations over their natural wealth and resources, due regard should be paid to the rights and duties of States under international law and to the importance of encouraging international co-operation in the economic development of developing countries,

Bearing in mind its resolution 1515 (XV) of 15 December 1960, in which it recommended that the sovereign right of every State to dispose of its wealth and its natural resources should be respected,

Considering that any measure in this respect must be based on the recognition of the inalienable right of all States freely to dispose of their natural wealth and resources in accordance with their national interests, and on respect for the economic independence of States,

Considering that nothing in paragraph 4 below in any way prejudices the position of any Member State on any aspect of the question of the rights and obligations of successor States and Governments in respect of property acquired before the accession to complete sovereignty of countries formerly under colonial rule,

Noting that the subject of succession of States and Governments is being examined as a matter of priority by the International Law Commission,

Considering that it is desirable to promote international co-operation for the economic development of developing countries, and that economic and financial agreements between the developed and the developing countries must be based on the principles of equality and of the right of peoples and nations to self-determination,

Considering that the provision of economic and technical assistance, loans and increased foreign investment must not be subject to conditions which conflict with the interests of the recipient State,

Considering the benefits to be derived from exchanges of technical and scientific information likely to promote the development and use of such resources and wealth, and the important part which the United Nations and other international organizations are called upon to play in that connection,

Attaching particular importance to the question of promoting the economic development of developing countries and securing their economic independence,

Noting that the creation and strengthening of the inalienable sovereignty of States over their natural wealth and resources reinforces their economic independence,

Desiring that there should be further consideration by the United Nations of the subject of permanent sovereignty over natural resources in the spirit of international co-operation in the field of economic development, particularly that of the developing countries,

I

Declares that:

1. The right of peoples and nations to permanent sovereignty over their natural wealth and resources must be exercised in the interest of their national development and of the well-being of the people of the State concerned.

2. The exploration, development and disposition of such resources, as well as the import of the foreign capital required for these purposes, should be in conformity with the rules and conditions which the peoples and nations freely consider to be necessary or desirable with regard to the authorization, restriction or prohibition of such activities.

3. In cases where authorization is granted, the capital imported and the earnings on that capital shall be governed by the terms thereof, by the national legislation in force, and by international law. The profits derived must be shared in the proportions freely agreed upon, in each case, between the investors and the recipient State, due care being taken to ensure that there is no impairment, for any reason, of that State's sovereignty over its natural wealth and resources.

4. Nationalization, expropriation or requisitioning shall be based on grounds or reasons of public utility, security or the national interest which are recognized as overriding purely individual or private interests, both domestic and foreign. In such cases the owner shall be paid appropriate compensation, in accordance with the rules in force in the State taking such measures in the exercise of its sovereignty and in accordance with international law. In any case where the question of compensation gives rise to a controversy, the national jurisdiction of the State taking such measures shall be exhausted. However, upon agreement by sovereign States and other parties concerned, settlement of the dispute should be made through arbitration or international adjudication.

5. The free and beneficial exercise of the sovereignty of peoples and nations over their natural resources must be furthered by the mutual respect of States based on their sovereign equality.

6. International co-operation for the economic development of developing countries, whether in the form of public or private capital investments, exchange of goods and services, technical assistance, or exchange of scientific information, shall be such as to further their independent national development and shall be based upon respect for their sovereignty over their natural wealth and resources.

7. Violation of the rights of peoples and nations to sovereignty over their natural wealth and resources is contrary to the spirit and principles of the Charter of the United Nations and hinders the development of international co-operation and the maintenance of peace.

8. Foreign investment agreements freely entered into by or between sovereign States shall be observed in good faith; States and international organizations shall strictly and conscientiously respect the sovereignty of peoples and nations over their natural wealth and resources in accordance with the Charter and the principles set forth in the present resolution.

Hon S Kasukuwere (M.P)

Minister of Youth, Indigenisation and Empowerment

Entrepreneurs must embrace partnerships with foreign companies as such synergies will help local businesses to grow.

YOUTH Development, Indigenisation and Empowerment Minister Saviour Kasukuwere has urged entrepreneurs to embrace partnerships with foreign companies as such synergies will help local businesses to grow.

Speaking during the launch of Acc Tech Zimbabwe in Harare last week, Minister Kasukuwere said Government supports strategic alliances between foreign and local companies as long as such ventures adhered to the country’s laws. Acc Tech Zimbabwe, which specialises in providing accounting and financial advisory services, was launched after its original company, Dawn Advisory Services, clinched a franchise deal with Acc Tech International.

                       YOUTH Development, Indigenisation and Empowerment Minister Saviour Kasukuwere

Minister Kasukuwere said the alliance between the two companies would help enhance competition and improve the finance services sector in the country. The minister said provision of proficient accounting services would aid the country’s endeavour to achieve economic growth.
“The coming in of Acc Tech into the country will help our businesses to manage their accounting and payroll systems. In general, it will help to improve how we do business in Zimbabwe and help in our endeavour to achieve economic growth. This year our economy is forecast to grow by at least 12 percent and provision of such efficient accounting services will aid this growth,” he said.

The minister said his ministry supports partnerships between locals and foreigners contrary to the view perpetrated by the Western media that Zimbabwe is hostile to foreign investment.
“Foreign investors are very welcome in this country. There has been a lot of talk contrary to this but what we want to assure you is that once there is a partnership that is in place, the ministry will be with you.
“We want win-win solutions so that both the locals and foreigners do benefit from the businesses.

There are a lot of opportunities for investment in this country, especially in the mining and agriculture sector, and I want to urge the youth to identify partners and take advantage of these opportunities.
“Once you have made such an arrangement it will be easy to get support from my ministry,” he said.
Speaking during the same occasion, Acc Tech International CEO Mr Morne Swanepoel said the official coming of the company into Zimbabwe would make it easier for enterprises to manage their businesses.

“The coming of our company into this country means that there will be improved financial services advice to these key sectors of the economy like the tobacco industry, mining and manufacturing.
“There will be improved service in human resources management, budgeting and accounting for all these key sectors,” he said.
He also revealed that Acc Tech is the leading implementer of the Sage Software (Enterprise Resource Planning) ERP and Customer Relationship Management (CRM) solutions in the world and the company is also accredited as a Gold Partner by Microsoft.
Formed in 1995, Acc Tech International is headquartered in South Africa and has a footprint in nine countries on the continent.-The Sunday Mail

Independence not supported economically is meaningless

Political independence is meaningless without indeginisation of the economy, a Cabinet Minister has said.
Youth Development, Indeginisation and Empowerment Minister Saviour Kasukuwere made the remarks while addressing nearly 1 000 people — among them businessmen, chiefs and legislators — on Government’s indeginisation drive in Marondera on Wednesday.


“We appreciate that the land question has been addressed, but it is not enough without talking about economic empowerment for black people,” said Minister Kasukuwere.
“The whites had the objective of controlling our resources, including mineral wealth as expounded by the Rudd Concession, and they gave this control to their trusted lieutenants.”
This, the minister said, was designed to benefit a few individuals at the expense of the majority. He reiterated that democratisation of the economy was neither political nor racist but was simply meant to ensure the black majority controlled their resources.

“The legislative framework of indeginisation was debated at length in Parliament and legislators finally agreed that the President signs it into law.
“It was with consensus that we agreed to the inclusion of the majority of people in the day-to-day running of the economy, with foreign investment coming in after our empowerment,” said Minister Kasukuwere.

He cited the example of black granite, which is mined in Mutoko but is exported without the local community benefiting.

“What’s there to show we’re principals of our country when not even a single house in Mutoko has been built using granite?

“Our wealth is our natural right, hence all companies with a capital base of more than US$500 000 should have an indigenous ownership of 51 percent,” he said.
The minister pointed out that Marondera did not have many companies with the required capital base hence the aim was resuscitation of defunct entities like the Cold Storage Company.
Chairman of the National Indeginisation and Economic Empowerment Board, Mr David Chapfika, told delegates that they wanted accelerated rural development.

“We were allocated US$5 million from the budget this year, while we’ll borrow capital from markets, collect levies from companies and also contributions from individuals for implementing the empowerment programme,” said Mr Chapfika.

Scores of people were turned away as the venue proved too small for the large turn-out from across the whole of Mashonaland East Province.

Empower Youths - President Mugabe

President Mugabe has challenged United Nations member states to institute policies that will nurture and empower the youth so that they play an integral role in the socio-economic and political affairs of their nations.
Addressing the UN High-Level meeting on youth at the UN headquarters yesterday, the Head of State and Government and Commander-in-Chief of the Zimbabwe Defence Forces, said Zimbabwe has since independence in 1980 regarded youths as the vanguard of the country.

“While the high level meeting on youth is advocating for the mainstreaming of youths into contributing to issues pertaining central governance, it is of paramount importance the United Nations member states institute policies that will give proper orientation that will shape the youths to become responsible future leaders,” he said.

Cde Mugabe said Zimbabwe had since 1980-regarded education as priority in nurturing the youths and giving them preparatory skills that would empower them to contribute meaningfully to the socio-economic and political affairs of the country.

Youth Development, Indigenisation and Economic Empowerment Minister Saviour Kasukuwere

“Member states should adopt a catch-them- young concept such as the education for-free policies my Government has introduced among other policies for youth including health in the face of HIV and Aids,” he said.

President Mugabe also called on the region to form a union for youths to deal with HIV and Aids awareness programmes at regional level.

He said that through the indigenisation and empowerment Act of Parliament, Zimbabwean youth need room to become employers by establishing their own entities in mining, manufacturing and agriculture among others.
Child parliament is another policy introduced to youths whereby Cabinet ministers interacted with the young generation and shared notes on governance issues.

It is against this background that President Mugabe challenged the meeting to adopt and pluck a leaf from Zimbabwe’s experience in empowering the youths to become future leaders.
The UN High-level Meeting on Youth is part of the International Year of Youth held under the theme: “Youth: Dialogue and Mutual Understanding”.

The meeting seeks to address issues on strengthening international co-operation regarding youth and enhancing dialogue, mutual understanding and active youth participation as indispensable elements towards achieving social integration, full employment and the eradication of poverty.
It is also focusing on challenges to youth development and opportunities for poverty eradication, employment and sustainable development.

Youth Development, Indigenisation and Economic Empowerment Minister Saviour Kasukuwere said President Mugabe was attending the meeting to show Government’s commitment to youth empowerment.
According to a draft resolution adopted at the UN General Assembly on the organisation of the high level meeting, member States should pay due attention to relevant development goals, including MDGs, relevant outcomes and programmes of action including the World Programme of Action for Youth and General Assembly resolution 62/126.

Member states, observers, and representatives of UN systems entities, civil society, youth organisations and the private sector would participate in the meeting for “interactive and substantive discussions”.
The General Assembly president must produce a draft text, in consultation with member states, taking into account input from youth-led organisations.

Zimbabwe Accepts Mining Firm Indigenization Proposals - With Reservations

Kasukuwere said the government has accepted the 25 percent equity stakes the companies have offered, though it intends to vigorously pursue the remaining 26 percent on behalf of communities around the mines.

Zimbabwean Indigenization Minister Saviour Kasukuwere said Wednesday that it is not true, as reported, that Harare rejected all of the 175 local ownership proposals received from foreign mining firms while issuing warning that it will eject firms that fail to meet a September deadline on transferring majority ownership to blacks.

Kasukuwere told VOA that the government has accepted the 25 percent equity stakes offered by foreign-owned mining companies, though it intends to vigorously pursue the remaining 26 percent of equity on behalf of communities around the mines.

Reuters earlier quoted Kasukuwere as saying Harare had rejected all the proposals from mining firms that did not offer a 51 percent controlling stake for black investors.

Under the government's controversial black empowerment law, foreign miners operating in Zimbabwe must sell a majority stake to local black investors or risk seizure.

"We have received 175 proposals from mining companies and while we are not entirely happy about it, we have received the bids and are proceeding and doing our job," said Kasukuwere in an interview. "The proposals were that 26 percent would be done through social credits and 25 percent direct equity."

He said the government had rejected the offer of 26 percent in social credits.

Social credits are notional equity points credited to firms for investing in infrastructure and local development projects such as roads, schools and hospitals.

"That is the job of the government to provide infrastructure and not the mining firms so we will work with what is here now while we pursue the remaining 26 percent equity," said Kasukuwere.

Zimbabwe has the world's largest known platinum reserves after neighboring South Africa. Major foreign miners operating there include Zimplats Holdings, a unit of Impala Platinum, global mining giant Rio Tinto and Anglo Platinum.

The country's mining sector, which has been starved of capital after years of decline, also produces gold, diamonds, ferrochrome, coal and iron ore reserves.

Kasukuwere told VOA Studio Seven reporter Blessing Zulu that the government, though unhappy with the offers has accepted those received to date.

Economic commentator Rejoice Ngwenya said he does not see mining companies being booted out of the country in September even if they fail to meet indigenization targets.

Sandra Nyaira | Washington

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