New Indigenisation Minister Signals At Approach Shift

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By Zimbabwe Investor on October 11, 2013. No Comments

New indigenisation Minister Francis Nhema

New indigenisation Minister Francis Nhema

LONDON (Zimbabwe Investor) – Newly appointed Minister for Indigenisation, Francis Nhema who swapped portfolios with Saviour Kasukuwere, has said that key to the success for the indigenisation and empowerment policy was the creation of wealth and business underpinned by access to skills and training.

The former environment minister has hinted at the shift in approach to the indigenisation implementation away from transfer of wealth in a post on his Twitter account.

“Creation of new wealth and business is critical for the success of economic empowerment”, Minister Nhema said.

Zimbabwe’s indigenisation and empowerment law, introduced by the Zanu PF government, has in cases caused jitters among some foreign investors as it requires that foreign owned businesses transfer up to 51% of their equity to locals.  The idea of transferring assets of existing foreign owned businesses to indigenous Zimbabweans has been criticised for not addressing the economic growth needs of the country critical for employment creation.

The new minister’s approach shifting away from transfer of assets to creation could mark a turning point in the way the controversial law is viewed paving way for the much need Foreign Direct Investment.