Zimbabwe: Indigenisation Law to Be Amended
<![CDATA[By Lloyd Gumbo [caption id="attachment_15107" align="alignleft" width="290"] Photo: New Zimbabwe
Finance Minister Patrick Chinamasa and IMF’s Domenico Fanizza (file photo).[/caption] Amendments to the Indigenisation and Economic Empowerment Act that will see line ministries approving indigenisation plans in sectors under their purview are set to be effected soon after Parliament approves some of them through the 2015 National Budget.Speaking in the Senate while steering the Finance Bill recently, Finance and Economic Development Minister Patrick Chinamasa, said the Ministry of Indigenisation and Economic Empowerment would only issue compliance certificates on the recommendation of line ministries after their assessment. He said the line ministries and that of Indigenisation and Economic Empowerment would monitor implementation after compliance with the law. “Madam President, the Bill also seeks to amend the Indigenisation and Economic Empowerment Act, in order to devolve to line Ministries the responsibility for approving indigenisation plans, prescribing indigenisation and empowerment assessment rating schemes and certifying transactions as being compliant with the Act,” he said. “These amendments are motivated by the fact that line ministries are generally more knowledgeable about the dynamics of the sectors which come under their responsibility. “They will be in a better position than the minister responsible for the Indigenisation and Empowerment Act to know the real needs of each sector, the inadequacies, strengths and weaknesses. So, it is for this reason that we devolving this responsibility to line Ministries.” Zanu-PF senator for Manicaland, Retired Lieutenant General Mike Nyambuya said while devolving indigenisation assessment to line ministries was a bold move, it would have been ideal to clarify the indigenisation law from a centralised authority. “Because again, if you leave it to line ministries and officials; you might create some room for rent seeking behaviour. It would be good if could lay down one solid policy which is friendly to the investors.