The Sunday Mail
Lincoln Towindo and Tinashe Farawo
Thousands of Zimbabweans have since 2010 secured US$3 billion worth of shares in over 1 000 foreign-owned companies whose indigenisation compliance applications were approved by Government.
A State-administered empowerment fund has accumulated US$1,3 billion by acquiring assets in major mining firms.
Further, deals valued at US$700 million will soon be certified.
The latest National Indigenisation and Economic Empowerment Board compliance report shows authorities have processed 1 089 applications since 2010.
About 398 mining firms applied successfully.
The report also reveals that 600 companies in various sectors transferred US$535 million worth of shares to local hands.
These sectors include energy (US$6 million), transport (US$40 million), services (US$3 million), real estate (US$4 million), financial services (US$16 million), and construction (US$57 million).
The document reads, in part, “The Ministry of Youth Development, Indigenisation and Economic Empowerment and the National Indigenisation and Economic Empowerment Board, in implementing the indigenisation and economic empowerment policy, have processed 1 089 applications since the year 2010.
“This figure includes 218 applications in the sectors of finance and tourism that are held by the ministry. The distribution of applications was tilted towards the manufacturing and mining sectors of the economy.”
The law compelled mining companies to work towards indigenising within a year of the gazetting of Statutory Instrument 21/2010. The manufacturing sector should comply within four years, and the remaining sectors within a year.
Every affected company is required to submit to Government plans detailing its share transfer structure. Once authorities approve, the company should apply for an indigenisation compliance certificate.
Applicants must assist vocational training centres and enable youths to acquire entrepreneurial skills in setting up their own enterprises or secure employment.
Youth Development, Indigenisation and Economic Empowerment Minister Francis Nhema recently told The Sunday Mail that the ministry was focusing on skills development.
Business analyst Mr Sebastian Mubvumbi said: “It is very important for the country to benefit from its resources, but the most important thing is for the benefits to cascade down to the village and ordinary man in the street. We don’t want a situation where only the well-connected benefit at the expense of the majority.”
