Youth Empowerment

Today we updated the nation on the indigenisation of the mining sector.Like I said ,the progress to date is very encouraging and it has dawned upon all that the law of the land must be upheld.The cooperation and goodwill are key features in successful transformations.The empowerment program me is a very important development in the history of our nation and i am certain that at the end of the process ,we must see an empowered nation benefitting from her natural endowments.The world over,nations have developed on the back of their resources and endowments,Zimbabwe is no exception.The journey has been tough and ahead of us lie trying times as we implement the program me aimed at broad based and inclusive participation.The communities and workers occupy an important role in a democratic economy.The energies of our youths being called upon to embrace the mining industry as the future.


The visit to my office by the MDC(T) Youth leadership was interesting and illuminating.I came out of the meeting with a sense that the challenges that confront our young people are common.Empowerment of the youths and skills are key to developing young people who will be central in national development.The 1:30 hr meeting has opened to all communication that is vital in youth work and l commend them for the courage and desire to engage positively.A lot can be done to develop the youths and the meeting today has set on course a trajectory that we should build on.

Trusts set up for empowerment

Deputy Business Editor Fanuel Kangondo GOVERNMENT is engaging community leaders around the country on the setting up of trusts to form part of the process for broad-based indigenous empowerment, two Cabinet ministers have said. As part of the empowerment programme, foreign-owned mining firms that have filed acceptable plans to meet the indigenisation thresholds in line with the law have undertaken to release a portion of their equity to local communities where they are operating. The empowerment laws compel foreign-owned firms, including banks and mines, to transfer at least 51 percent ownership to locals by 2014. Under the new ownership structure, workers are also set to benefit. Youth Development, Indigenisation and Empowerment Minister Saviour Kasukuwere, alongside his Local Government, Rural and Urban Development counterpart, Dr Ignatius Chombo, last week met traditional chiefs in the Mhondoro-Ngezi area where Zimplats is operating. The ministers explained how the trusts would operate. They said the benefits should be there for all to see in the respective communities. Minister Kasukuwere dispelled fears that the programme had been hijacked by influential individuals for their own benefit. He said the programme was broad-based and would be in existence for future generations. "We have taken a risk and you, as the custodians of these mineral resources, should be rewarded," he said. "We have to strike a balance between the aspirations of the people and our investors. There will always be challenges along the way and you must be mindful of those trying to derail the progress." Addressing the people in Zvishavane after touring Mimosa Platinum Mine, Minister Kasukuwere said they should have the courage to say "We can do it" and prepare themselves to play a meaningful role in the company once their stake had been placed on the table. Aquarius Platinum and Impala Platinum of South Africa jointly own Mimosa. The company's managing director, Mr Winston Chitando, said Mimosa had submitted its indigenisation plan but he could not give details as it was still being considered by the ministry. The delegation visited Mimosa and met five local chiefs and Member of the House of Assembly for the area, Mr Obert Matshalaga, and former Midlands Governor Mr Cephas Msipa. The management team was praised by Minister Kasukuwere for employing locals and engaging local entrepreneurs to supply up to 70 percent of consumables for the mine. Besides providing housing that has transformed the Zvishavane town that nearly collapsed with the closure of SMM Mines a few years ago, the nearly 2 000-strong workforce is upbeat about what they expect to achieve with the latest developments at the mine. They chose not to talk much about it at this stage, opting instead to wait for the official announcement, expected anytime soon. Minister Kasukuwere, accompanied by the chairman of the National Indigenisation and Economic Empowerment Board, Mr David Chapfika, toured the newly-opened Unki Mine in Shurugwi, owned by the Anglo- American plc group. The company's country director, Mr James Maposa, and its finance director, Mr Collen Chibafa, assured the local community that negotiations with the ministry over compliance issues would be concluded soon.

Minister Saviour Kasukuwere setting up Indeginization Community Trusts with support of ZIMPLATS MD

Today yet another wonderful day.Was in Ngezi and we are on course setting up the Community Trust .I was excited that the community and the Chiefs will now benefit from the resources that have been extracted for years in their area.Zimplats attended and the MD made a good speech that indicated a desire to engage on a win win basis.Better days are within reach for our people,the very cause of years of struggle and sacrifice.


Yesterday l spoke of the fund and we are moving.These are patternships that should allow our youths and communities to fight poverty and unemployment.


We should build a great nation of believers.


There is no going back.

Hon S Kasukuwere (M.P)

Minister of Youth, Indigenisation and Empowerment

Old Mutual Agrees Deal With Zimbabwe to Meet Ownership Law

It's been a good day in the office.Old Mutual has started complying with the laws of the land and a fund to the tune of 11 million dollars has been agreed to.This meant for the young people in our country and l am sure it will go a long way in meeting the expectations of our youths.
Good day.

Old Mutual Plc (OML) said it reached an agreement with Zimbabwe’s government about how the insurer will comply with a law to sell a majority stake in its local operations to black Zimbabweans.

“We have reached a deal and we feel this is a sensible one,” Ralph Mupita, Old Mutual’s Chief Executive of Life and Savings, said in an interview in Harare, the capital, today. “It’s a broad-based proposal we have put forward and this is something we are happy with.”

The southern African nation’s government have asked foreign companies to submit plans on how they will meet a law to sell 51 percent of local assets to black citizens. The law is focused on mining and financial services companies in a country with the world’s second-biggest reserves of platinum and chrome.

Old Mutual’s Zimbabwe unit will cede 25 percent of its assets through grants and shares to pensioners, staff, partner companies and a youth fund, Empowerment and Indigenization Minister Saviour Kasukuwere told reporters in Harare.

The company will also support a state agriculture fund and help fund housing projects, while agreeing to invest $20 million in its local operations, Kasukuwere said. The agreement will be reviewed in November, he said.

To contact the reporter on this story: Godfrey Marawanyika in Johannesburg atgmarawanyika@bloomberg.net

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net

Zimbabwe welcomes youth voices in constitutional review

By Tapuwa L. Mutseyekwa

HARARE, Zimbabwe, 30 September 2010 – Among his peers, Simba Chikukwa, 13, is hardly noticeable. His small stature is overshadowed by the others. It is only when he stands up to speak that all eyes and ears focus on the young man from Gutu district, some 250 km from Harare, Zimbabwe’s capital.

VIDEO: 23 September 2010 - UNICEF correspondent Anja Baron reports on the special children’s consultative outreach programme conducted in Zimbabwe by the Constitutional Parliamentary Select Committee, with support from UNICEF. Watch in RealPlayer

Speaking with skill and confidence, Simba is helping to ensure that the voices of thousands of other children in Zimbabwe can be heard and considered. Zimbabwe is currently redrafting its constitution and young people will play an integral role in the process.

Children represent children

“As children, we are often excluded when decisions about our lives are being made,” said Simba. “We hope that this new constitution will guarantee every right that we have as children and ensure that we do not suffer because of the choices, decisions and beliefs of our parents or elders.” 

Zimbabwe’s constitution is currently being reviewed as part of the Global Political Agreement signed by the three main political parties in September 2008 and young people are actively being included in the process. 

© UNICE/2010/Mutseyekwa

Simba Chikukwa, left, speaks during a children’s national consultative outreach programme in Harare, Zimbabwe.

Simba was among the more than 160 children from across Zimbabwe who were part of a special children’s national consultative outreach programme, which was conducted in Harare by the Constitutional Parliamentary Select Committee (COPAC) with support from UNICEF. The young people called for a new constitution guaranteeing the rights and best interests of every child – especially with regard to education, religion, health and social protection.

The abolition of corporal punishment in schools, free and equitable access to education, mandatory immunization, the elimination of discrimination and freedom of speech were among other main issues which the children identified as key to ensuring that their rights are well protected through the new constitution. 

Contributing to the process

The participating children – representing all 63 districts of Zimbabwe – were drawn from the Zimbabwe Junior Parliament, representatives from the Ministry of Constitutional and Parliamentary Affairs’ capacity building programme, and children from special interest groups including those living with HIV, children with disabilities and children living on the streets. 

“The children have been consulted and rightfully so, as they constitute a majority of Zimbabwe’s population,” said Minister of Youth Development, Indigenization and Empowerment, Hon. Saviour Kasukuwere. 

© UNICEF/2010/Mutseyekwa

Minister of Youth Development, Indiginisation and Empowerment Hon. Saviour Kasukuwere (left) and UNICEF Representative in Zimbabwe Dr. Peter Salama.

Not only powerful orators like Simba contributed to the consultation process. Children were encouraged to voice their ideas directly to the Consultative Outreach Team through a combination of games, small group discussions and formal parliamentary debates – an innovative and child-friendly departure from the formal consultation process that is available to adult Zimbabweans.

“Children’s voices and contribution to the constitution-making process is critical,” said UNICEF Representative in Zimbabwe Dr. Peter Salama. “All Zimbabwean children have a legitimate claim to make contributions to this process.”

Dr. Salama commended the Government of Zimbabwe for its “bold undertaking,” adding that “the issues tabled in the constitution will affect [children’s] lives today and in future.”

Guaranteed a voice

“Traditional practice has generally not considered children’s opinions and views to be important,” said COPAC Co-Chairperson Hon. Paul Munyaradzi Mangwana. “But we have decided that in this historic process, their views should be considered because children are the future.

© UNICE/2010/Mutseyekwa

Children at Zimbabwe's national consultative outreach programme used games and other techniques to highlght important issues in country's new constitution.

“COPAC is committed to its mandate of producing a true people-driven constitution,” he added.

At the conclusion of the programme, children presented COPAC with a formal record of their discussions and recommendations. In accepting the official submissions, COPAC Co-Chairperson Hon. Douglas Mwonzora guaranteed the children that their contributions would find their way into the chapters of Zimbabwe’s constitution.

“By including children in the constitution making process, Zimbabwe is bench-marking itself against the best in the world,” said Mr. Mwonzora. “The participation of children in this process has certainly marked a victory for human rights and children’s rights in Zimbabwe.”


http://www.unicef.org/infobycountry/zimbabwe_56270.html

Zimplats to proceed with expansion plan

PLATINUM mining giant Zimplats says it will proceed with its US$460 million expansion plan after agreeing with Government on a process to produce an acceptable revised indigenisation plan by November 15 this year.


Zimplats chairman Mr David Brown said this after a joint Press briefing with Youth Development, Indigenisation and Empowerment Minister Saviour Kasukuwere.
Minister Kasukuwere said he was happy with the process agreed with Zimplats as that will see the mining firm fulfilling the objectives of indigenisation.
The Government had last week resolved to cancel Zimplats' licence after the mining firm had failed to come up with an acceptable indigenisation plan.


The giant platinum miner had earlier indicated that the move by Government to localise 51 percent of its shareholding could affect its expansion plans.
Foreign-owned companies are required, in terms of the Indigenisation and Economic Empowerment Act, to cede for value at least 51 percent of their equity.
Sticking points to earlier discussions centred on the insistence by Zimplats that Government should recognise mineral reserves the firm released to the State as part fulfilment of indigenisation and empowerment requirements.




The Government had declined to award credits for the block of mineral reserves the platinum mining companies valued at an estimated US$150 million.
But both parties emerged from two days of discussions yesterday with consensus and a view to ensure the indigenisation process is mutually beneficial to all.
"I am happy to say that as a ministry and as a Government we have agreed on a process that will see us now move to achieve the empowerment objectives in line with the objectives of the laws of the land," said the minister.


As such, Zimplats and the Ministry of Youth Development, Indigenisation and Empowerment will immediately set up a community share ownership scheme.
After the joint press briefing Mr Brown pledged that Zimplats would continue with its current expansion drive to ramp up annual production by 90 000 ounces.
"We are working on a revised (indigenisation) plan and we will submit the plan by November 15. We will obviously know at that stage what the position is, so we can't comment on the details.


"With regards to our expansion plans we are busy with phase II at the moment and the cost is about US$460 million. That should add about 90 000oz of platinum per annum," said Mr Brown.
He said the ongoing phase II expansion programme would be completed by 2014 and any further expansion would be discussed with the Government.
Zimplats is currently producing about 180 000 ounces of platinum per annum, but the Ngezi Phase II expansion programme would raise output to 270 000 ounces per year.


This followed the successful completion of the US$340 million Ngezi Phase 1 expansion project, which raised platinum output by 88 percent to 180 000 ounces.
Continuous expansion investment has positively translated into increased revenue.
Zimplats recorded a 64 percent jump in full year after tax profit to US$200 million while revenue rose 30 percent to US$527 million.


http://www.herald.co.zw/index.php?option=com_content&view=article&id=21121:zimplats-to-proceed-with-expansion-plan&catid=41:business&Itemid=133

Empowerment rules: Zim to set up equity fund

BY NDAMU SANDU
ZIMBABWE is set to establish a Sovereign Wealth Fund (SWF) to hold shares in various entities acquired by the government under the empowerment legislation signifying its intentions to move ahead with the programme that has rattled foreign investors.




The move comes after major mining companies buckled under pressure and resolved to sell controlling shareholding to locals in line with the Indigenisation and Economic Empowerment Act.


Initially, mining houses under the Chamber of Mines umbrella had offered 26% to locals. According to information obtained last week, the country’s SWF, Zimbabwe Investment Corporation (ZIC) will be launched before the end of the year to house resources for the future generation.


The fund will be the baby of the Ministry of Youth Development, Indigenisation and Empowerment with oversight responsibility from the Ministry of Finance. ZIC will hold shares in various entities acquired by government as part of the empowerment legislation as well as revenue from an SWF super tax of 5% on mineral production.


It also seeks to raise over US$5 billion in assets over the next three to five years. An independent body would be established to oversee the management of the fund.
Before the fund is lau-nched, the promoters would visit renowned funds in Asia and the Middle East.


In Asia, the team would visit the Singapore Investment Corporation and China Investment Corporation. In the Middle East, the team would visit Abu Dhabi Investment Authority (ADIA) and Qatar Investment Authority.


ADIA is the world’s largest fund with assets of over US$620 billion. There are currently 51 funds with combined assets of over US$4 trillion. According to the Sovereign Wealth Fund Institute (SWFI) since 2005, at least 19 funds have been created.


SWFI studies the funds and their impact on global economics, politics, financial markets, trade and public policy. It said globally, the financial and utility sectors in direct investments were white hot for sovereign investors.


“In the first half of 2011, US$7, 09 billion was invested by SWFs in the financial sector. “This was followed by U$3,13 billion in utilities. Year-to-date from 2011, we have recorded US$3, 41 billion in energy sector direct transactions,” it said.


WHAT IS A SOVEREIGN WEALTH FUND?


An SWF is a state-owned investment fund composed of financial assets such as stocks, bonds, real estate or other financial instruments funded by foreign exchange assets.


SWFs may be created through commodity exports, either taxed or owned by the government or non commodities through transfers of assets from official foreign exchange reserves.


http://www.thestandard.co.zw/business/31543-empowerment-rules-zim-to-set-up-equity-fund.html