Deputy Prime Minister Arthur Mutambara Supports Youth Development, Indigenisation and Empowerment

Deputy Prime Minister Arthur Mutambara has thrown his weight behind Youth Development, Indigenisation and Empowerment minister Saviour Kasukuwere’s indigenisation crusade, saying there was no reason why foreign banks should be regarded as sacred institutions.

Kasukuwere’s calls for the indigenisation of foreign banks have courted the ire of Finance minister Tendai Biti and Reserve Bank of Zimbabwe governor Gideon, Gono who have argued that the financial services sector was sensitive.

Speaking on Wednesday night during a debate organised by Sapes Trust in Harare, Mutambara said there was need to indigenise the banking sector in line with national interest.

“The financial sector must be indigenised. It must be aligned to the national interest,” he said.

Mutambara said it was “a travesty of justice” for banks such as Standard Chartered to bank money raised locally in England.

Foreign-owned banks have been accused of ignoring calls to support local farmers, arguing the latter had no collateral, so the banks could not gamble with their clients’ savings. Mutambara said since agriculture was a key pillar of the country’s economy, it was wrong to have a financial sector not supportive of agriculture.

“We need a new financial sector law as the current ones are inadequate. New instruments must be given to the financial sector,” he said.

“Banks must support agriculture because there is money to be made there. You can’t have banks in the country that don’t support agriculture. Whose interests are they serving?”

Biti told journalists last month that there was no need to indigenise the financial sector since it was already dominated by local banks. Standard Chartered, Barclays, Stanbic and Ecobank are the only foreign-owned banks in the country.
Foreign-owned firms operating in Zimbabwe are required in terms of the Indigenisation and Economic Empowerment Act to sell at least 51% stake to locals.

Kasukuwere has in the past said after the mining sector had been fully indigenised, he would turn his focus to the financial sector.

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Joint Press Release between Implats and the Ministry of Youth Development, Indigenisation and Empowerment.

Following a meeting between the Minister of Youth Development Indigenisation and Empowerment, the Chairman of the Implats Board of Directors and CEO of Implats, the new Zimplats Indigenisation Implementation Plan that was presented to the Minister meets the minimum requirements of the Indigenisation and Economic Empowerment Act and Indigenisation and Economic Empowerment Regulations of 2010 and is acceptable in principle to the Government of Zimbabwe.

The details for the transfer of 51% shareholding in Zimplats, comprising 10% shares to community, 10% share to employees and 31% to the National Indigenisation and Economic Empowerment Fund (NIEEF) will be addressed by a joint technical team comprising Zimplats, the Ministry responsible for indigenisation and the NIEEB, but will be at appropriate value.

…………………………………………………………………………………………
Honourable Minister S. Kasukuwere ( M.P)
Minister of Youth Development, Indigenisation and Empowerment
…………………………………………………………………………………………
Dr. K. Mokhele
Chairman of Implats

                                                                              13 March 2012

Zimbabwe Indigenisation moves to the Manufacturing Sector

1 November 2011

PRESS STATEMENT BY THE MINISTER OF YOUTH DEVELOPMENT, INDIGENISATION AND EMPOWERMENT,HONOURABLE SA VIOUR KASUKUWERE (MP) ON THE PUBLICATION OF THE SECTOR SPECIFIC FRAMEWORK FOR INDIGENISATION IN THE MANUFACTURING SECTOR.

The indigenisation and economic empowerment programme seeks to create opportunities for increased participation by indigenous Zimbabweans in the mainstream economy.

The Indigenisation and Economic Empowerment Regulations of 2010 provide the general operational guidelines forimplementing the indigenisation and economic empowerment legislation in Zimbabwe. These regulations require that I gazette sector-specific notices laying out the minimum requirements for indigenisation in the various sectors of the economy.

In terms of the above, I would like to inform the public that, on 28 October 2011, I gazetted the sector specific notice for the manufacturing sector, namely General Notice 459 of 2011. This notice lays out the minimum requirements for indigenisation of businesses in the manufacturing sector.

General Notice 459 prescribes the following:

All businesses in the manufacturing sector with a net asset value of at least $ 100 000 shall comply with the indigenisation and economic empowerment legislation.

There shall be a lesser share of 26% indigenous shareholding.

Businesses have to comply with the 51% indigenous shareholding requirement over a period of 4 years from the date of publication of the General Notice.

The following are the annual indigenisation targets:

Year 1: 26% indigenous shareholding.
Year 2: 36% indigenous shareholding.
Year 3: 46% indigenous shareholding.
Year 4: 51% indigenous shareholding.

Eligible businesses are expected to submit their Indigenisation Implementation Plans within 45 days from the date of publication of General Notice 459 of 2011 in terms of section 5 (6) of the Indigenisation and Economic Empowerment (General) Regulations 2010, as amended.

General Notices on the remaining sectors will be published in due course.

Honorable Saviour Kasukuwere (M.P)

Zimbabwe Minister of Youth, Indigenisation and Empowerment

Minister Kasukuwere Responds to MDC President Morgan Tsvangirai Statement on Violence

A recent press statement by the MDC President Morgan Tsvangirai alleging that l participated or organized the violence that took place in Chitungwiza on Sunday,is completely false and an unfair attack on me. I have since approached him and he has assured me that he will check with his sources and take the necessary action to put the the record straight.

On my part, I travelled to Mutare with Hwata and the entire day l was attending to my business in Mutare. It is unfortunate that malice will drive people to accuse others or make baseless and unfounded allegations. I will defend myself on this allegation and l will get my name cleared. Its been a very painful moment to have such allegations labelled on me by the MDC President. I hope we will all be matured enough to handle this matter in a manner that is honest and fair. I am sure the PM will have the integrity of stating publicly his findings.

My stance is clear: Violence is unnecessary and must be condemned.Young people must not  allow themselves to be instruments of destruction and aggression. Differences must not be resolved in violent confrontation and the events of last weekend are unnecessary.

I wish a speedy recovery to all the young people who were affected and call upon the law enforcement authorities to bring the culprits to book.


Hon Saviour Kasukuwere 

Minister of Youth, Indigenisation and Empowerment

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

http://www.voanews.com/zimbabwe/news/Zimbabwe-Accepts-Foreign-Mining-Companies-Black-Empowerment-Proposals-125906343.html#comments