Published On: Wed, Apr 3rd, 2013

Live Update – Transfer of shares is not based on charity: Mashakada

Minister Timba, Deputy Minister Chimanikire and Minister Mashakada

Minister Timba, Ambassador Mavimbela and Minister Mashakada

Boksburg, Johannesburg, April 03, 2013 – Zimbabweans should not think that companies will be handed to them on a silver platter through indigenisation, Economic and Planning minister Tapiwa Mashakada has warned.

Gift Chimanikire

Gift Chimanikire

We do not have Chinese colonisers in Zimbabwe, but the Chinese came when no one was coming: Deputy Minister of Mines Gift Chimanikire

Addressing the Zimbabwe high level annual investment conference being held here, Mashakada said: ” When we talk of indigenisation…transfer of shares is not based on charity. The local partner has to put something on the table.”

He said it was unfortunate that the indigenisation had been packaged negatively although its intention was not to drive investors away.

“It’s because of the way we have packaged it. It’s not about nationalisation or expropriation but its aspirational,” he said.”We aspire to get 51 percent of shares in the long term.”

The Indigenisation law requires foreign companies to give 51 percent shares to locals.

Mashakada said Zimbabwe’s foreign direct investment had increased from $60 million in 2009 to 450 m in 2012.

 

 

Mashakada said this showed that Zimbabwe was now open for Zimbabwe.

He said Zimbabwe’s targeting of investors in South Africa was not by mistake but by design because South Africa was Zimbabwe’s largest investor and trading partner.

He noted that 50 percent of Africa’s purchasing power lied in South Africa, making it an economic giant.

At present South Africa is the second largest country that has brought foreign direct investment to Zimbabwe after China. Other countries are Mauritius, which is the third largest trading and investment partner, followed by Australia and Lebanon.

Addressing the same meeting the Minister of Economic Planning and Investment Promotion Dr Tapiwa Mashakada noted that Zimbabwe was revising laws that have in the recent past scarred away the much needed investment.

South Africa accounts for more than 60 percent of Zimbabwe’s international trade volumes.

Permanent secretary for Economic planning and investment promotion, Misheck Sibanda said trade volumes between Zimbabwe and South Africa reached $5,8 billion last year from $4,6 billion in 2011.

Zimbabwe incurred a trade deficit of $532 million after importing goods and services worth $3,2 billion from South Africa compared to exports valued at $2,7 billion.

Zimbabwe has since 2009 had an average annual economic growth rate of 7 percent except for 2012 where this was revised to five percent. Inflation is an average three and a half percent.