Terence Goodlace and Youth Development, Indigenisation and Economic Empowerment Minister Saviour Kasukuwere sign the Zimplats Empowerment Transaction while Local Government, Urban and Rural Development Minister Ignatius Chombo and Acting Zimplats board., a photo by Pan-African News Wire File Photos on Flickr.
Over 500 indigenisation applications approved
Sunday, 03 March 2013 00:00
Zimbabwe Sunday Mail
The Government has approved 506 out of 1 119 indigenisation plans submitted by various foreign-owned companies operating in the country, a Cabinet minister has revealed.
The plans are part of the Indigenisation and Economic Empowerment regulations that seek to promote local shareholding in foreign companies in the country.
Youth Development, Indigenisation and Empowerment Minister Saviour Kasukuwere said the Government had received 397 applications from the mining sector.
He was giving oral evidence before a Parliamentary Portfolio Committee on Womens Affairs, Youth, Gender and Community Development last week,
“In the mining sector, a total of 397 companies have applied and 254 applications were not approved, we will keep encouraging them to bring acceptable plans on how they want to indigenise,” Minister Kasukuwere said.
Minister Kasukuwere said a total of 319 companies in the manufacturing sector had submitted plans on how to take locals on board and 155 were approved with 174 being turned down.
In the energy sector, 22 entities have submitted their applications with 12 being approved while in the transport sector 23 out of the 31 indigenisation plans were approved, he said.
Indigenisation: Time to take great leap forward
The minister said in the service and property sectors, the Government had received a combined 82 applications with 27 having been approved.
Minister Kasukuwere said about 22 applications were approved in the retail sector after 41 applications were made while in the finance sector 92 entities submitted their plans with 28 being rejected.
He added that other sectors which had made applications included agriculture, construction, communication and tourism.
Minister Kasukuwere said delays in approving some of the plans were a result of the process in various sectors.
“The compliance periods range from 2013 to 2015 depending on the relevant sector.
“It has been observed that most submissions in the mining and manufacturing sector are still being worked on by the companies who are yet to resubmit revised indigenised plans as required by law,” he said.
“In other instances, shareholders may be based outside the country, making the decision-making at company level a long process.”
Minister Kasukuwere said the establishment of Community Share Ownership Trusts (CSOTs) had transformed communities from passive stakeholders to significant shareholders.
“In practice, communities are acquiring a 10 percent stake in businesses exploiting natural resources.
“Such revenue is used towards community development, with the goal of improving socio-economic welfare and diversifying the local economy,” he said.
To date, President Mugabe has launched seven CSOTs, in Manicaland, Mashonaland Central, West, Midlands, Matebeleland South and North and Masvingo.