HARARE Zimbabwe Platinum Holdings (Zimplats), the countrys largest producer of platinum, has called on the government to focus more on luring foreign investors than on its controversial economic empowerment drive. (Pictured: Indigenisation Minister Saviour Kasukuwer
The firm that has said it is ready to pump in a further $500 million to expand its operations but is holding out until there is clarity on the governments indigenisation policy said it supports any effort to empower locals. But it said such an effort to increase the participation of locals in the economy should be carried out in a way that does not compromise Zimbabwes desire to be seen as a preferred investment destination”.
Writing in the companys annual report to shareholders, Zimplats chairman David Brown said: “It is our firm belief that at this time, Zimbabwes greatest need is for increased levels of foreign direct investment to create more employment in the country. “We therefore urge the authorities to implement this law in a way that does not compromise Zimbabwes desire to be seen as a preferred investment destination.”
The government earlier this year published rules demanding that foreign-owned companies should cede 51 percent of their shareholding to locals, a move that scared investors and divided the unity government. The government later revised the law and last month named committees to recommend varying percentages of shareholding foreign-owned companies in the different sectors of the economy must transfer to locals.
Zimplats and other firms especially in the mining sector that have invested heavily in social infrastructure such as roads, schools and hospitals want these to be converted into empowerment credits, which would mean they would not be forced to cede too much stake to blacks. President Robert Mugabe has previously said the government had accepted the principle of empowerment credits as a vital component of the indigenisation law.
While Mugabe insists that the empowerment programme is meant to ensure blacks have control of the countrys economy and resources, critics say the Zanu (PF) leader wants to press ahead with transferring majority ownership of foreign-owned companies as part of a drive to reward party loyalists with thriving businesses.
Post published in: News