The Sunday Mail
Enacy Mapakame Business Reporter
GOVERNMENT believes that the Zimbabwe Stock Exchange (ZSE) has to enact regulations that allow indigenous players exclusive room to buy shares, particularly in foreign companies that are yet to reduce their shareholding in local companies to 51 percent as stipulated by the law.
Youth, Indigenisation and Economic Empowerment Minister Mr Francis Nhema told a parliamentary portfolio committee last week that changes to ZSE regulations would be another dimension to add oomph to the current indigenisation drive.
“You will find that you can have a foreigner with more than 51 percent in the first year of operation, the plan is they reduce that shareholding in five years. We want listed foreign companies eligible for indigenisation to offer shares exclusively to our people.
“If they (foreign investor) cannot find an indigenous partner, we ask National Indigenisation and Economic Empowerment Board (NIEEB) and local pension fund to buy that shareholding and keep it in custody until such a time when our locals can afford to buy it.
“Eventually, those shares can then be disposed to individuals with money, say one paying US$100, another US$300 and the other US$200 until we achieve the 51 percent threshold,” he said.
Currently, Athe ZSE is an open market where those who are financially able can enter or exit the market at will.
Foreign investors account for more than 60 percent of trades on the local bourse.
Minister Nhema said the indigenisation agenda was meant to broaden the participation of indigenous people in economic activities.
Community share ownership trusts, launched by Government three years ago, are one of the dimensions that enable indigenous people to participate in mainstream economic activity.
This, however, does not relate to the seed capital that companies pledged to communities.
“The idea of seed capital is that these companies have been operating without giving sufficiently to the communities,” said Minister Nhema.
To date, 15 out of 29 companies have already paid seed capital amounting to US$31 million.
Diamond companies operating in the Marange area are yet to meet their commitment.
Recently, representatives of Jinan Diamonds confessed ignorance of the existence of the Zimunya Marange Community Share Ownership Trust, arguing they never got formal communication on the Trust.
More than US$120 million worth of community trusts were established by Government in eight districts across Zimbabwe last year, which are predominantly mining areas.
The schemes were implemented in Masvingo, Mhondoro Ngezi, Marange, Hwange, Shurugwi, Gwanda, Zvishavane and Mashonaland Central, to empower indigenous people and ensure they fully benefit from mining activities in their locality.
Minister Nhema said all groups that were formerly marginalised by successive settler regimes were considered indigenous people.
