Indigenisation blow against colonialism: Minister

Kasukuwere, a top loyalist of President Robert Mugabe, announced in February that all foreign-owned businesses, including banks, mines and factories valued at a half a billion American dollars or more must offload their majority shareholding to locals by March 2015.

The regulations — that sent foreign-owned firms into panic with threats of imprisonment for foreign shareholders (or presumably their local representatives) who fail to comply within the next five years — gave foreign-owned companies up to the end of last month to submit proposals to the government on how they plan to bring locals on board.

Several foreign owned firms are understood to be finalising or have already submitted their indigenisation plans to Kasukuweres ministry.

In a telephone interview Kasukuwere told ZimOnline that Zimbabwe was still under colonialism as seen by the skewed distribution of wealth and ownership patterns favouring minority whites despite the country attaining independence from Britain in 1980.

The wealth imbalances derive from the system of colonialism . . . there is no way Zimbabweans can say they have overthrown colonialism when they do not control their resources, said Kasukuwere. This indigenisation is overthrowing remnants of colonialism.

The indigenisation rules have been a source of controversy dividing the unity government along party lines.

Critics fear Mugabes Zanu (PF) party wants to press ahead with transferring majority ownership of foreign-owned companies as part of a drive to reward party loyalists with thriving businesses.

But Kasukuwere denies the charges saying that the government will not impose local investment partners on foreign owned companies and blacks. My ministry will not force or impose any partner on foreign owned companies, he said.

While the coalition government has said it is reviewing the indigenisation laws, Mugabe and his party who still wield greater power in the unity government insist the empowerment drive must go ahead, ignoring warnings that this could scare away foreign investors whose funds Zimbabwe needs to rebuild its shattered economy.

The regulations that do not say where impoverished local Zimbabweans will get money to pay for stake in large mines and industries owned by foreigners are seen as a potentially fatal blow to efforts to woo foreign investors to help rebuild the countrys economy shattered by 10 years of political turmoil and acute recession.

The regulations were gazetted on February 5 in line with an Indigenisation and Economic Empowerment Bill passed in Parliament by the then sole ruling Zanu (PF) party in 2007. Mugabe signed the regulations into law in March 2008.