Harare – The Zimbabwe Government on Thursday denied reports that it is in the process of amending the Indigenisation and Empowerment Act.
Recent media reports indicated that the Government was in the process of reviewing the indigenisation and empowerment policy to facilitate sector-specific implementation.
The Production Sharing Model (PSM) and the Joint Empowerment Investment Model (JEIM) were reported to have been identified as the principal mediums through which the indigenization policy would now be implemented.
PSM is a broad cover for an assortment of production sharing agreements signed between governments and extraction companies concerning how much of a resource extracted from the country each will receive.
Under this model, Zimbabweans would retain 100 percent ownership of mineral resources and agricultural land.
Investors would be allowed to recoup their initial capital investment, an appropriate return on investment and operational costs before the sharing of production outputs or profits.
Under the JEIM, outside mining, agriculture and particular tourism investments, locals would be encouraged to enter into joint ventures as a way of generating capital to build wholly Zimbabwean-owned enterprises.
Youth, Indigenization and Economic Empowerment Minister Francis Nhema told the Parliamentary Portfolio Committee on Indigenization and Empowerment that although there had been debate in Cabinet about the issue, no concrete position had been reached yet.
“I never said I want to amend the indigenisation law. If we decide that there should be something done to the law we shall make an announcement,” he said.
“It is a matter that has come under discussion in Cabinet, we have people bringing in ideas but we have not reached a stage where we agree that we should amend. Right now we have not agreed on any amendments.”
Nhema was responding to a question from Mkoba MP Amos Chibaya who wanted to know when the amendments would come into force.
The Indigenisation and Empowerment Act, which was introduced in 2008, requires all foreign owned businesses operating in Zimbabwe to sell 51 percent equity to locals.