The Sunday Mail
PRESIDENT Mugabe has moved in to clarify the confusion over the interpretation of the indigenisation law, which he said undermined market confidence and increased the cost of doing business while weakening the country’s competitiveness in the wake of a public spat between Cabinet ministers. The President’s intervention puts to rest squabbles pitting Finance and Economic Development Minister Cde Patrick Chinamasa on one hand and his Youth, Indigenisation and Economic Empowerment counterpart Cde Patrick Zhuwao on the other pertaining to the financial services sector.
Said President Mugabe: “The banking sector shall continue to be under the auspices of the Banking Act, which is regulated by the Reserve Bank of Zimbabwe, and the insurance sector under the auspices of the Provident and Insurance Act.
“This policy position is essential for the promotion of financial sector stability, confidence and financial inclusion. These institutions will, nonetheless, be expected to make their contributions by way of financing facilities for key economic sectors and projects, employee share ownership schemes, linkage programmes and such other financial empowerment facilities as may be introduced by the Reserve Bank of Zimbabwe from time to time.”
Banks would use empowerment credits or quotas to contribute towards the indigenisation threshold with a greater emphasis on lending to key sectors of the economy. The President said conflicting positions on the interpretation of the law had caused confusion among Zimbabweans, the business community, and current and potential investors, thereby undermining market confidence.
He made the clarification on the Indigenisation and Economic Empowerment Policy in a statement issued yesterday through Information, Media and Broadcasting Services Minister Dr Christopher Mushohwe.
The President said businesses under the reserved sectors category were exclusively for Zimbabwean entrepreneurs except for existing ones and where a special dispensation was granted by the line minister.
Reserved sectors include transportation (passenger buses, taxis, car hire services) retail and wholesale, barber shops, hair dressing and beauty salons, employment agencies, estate agencies, valet services, grain milling, bakeries, tobacco processing, advertising agencies and provision of local arts and crafts and marketing and distribution.
The clarification limits the role of the Youth and Indigenisation and Economic Empowerment Ministry by allowing line ministries to come up with models of compliance. The President said the ministry’s role was to coordinate activities of line ministries in the implementation of the indigenisation policy through a Cabinet committee, chaired by the minister.
“Sector based empowerment credits or quotas will be granted to reflect the contribution of investors in such businesses to the national development efforts. “This will be agreed upon through negotiations involving relevant line ministries and investors.” – The Herald Zimbabwe
