Minister Biti may have assured the Euromoney Investment Conference that there will be no indigenisation of foreign-owned banks. The following day the Minister of Inidgenisation, Hon Saviour Kasukuwere, made his opinion clear that foreign-onwed banks will be required to give majority owenership to indigenous Zimbabweans. There is now a direct conflict on this matter between Minister Kasukuwere on the one hand and Minister Biti and the Governor of the Reserve Bank of Zimbabwe, Dr Gideon Gono, on the other hand.
Minister Kasukuwere has also now said that Government will not make any payment for the mineral resources owned by foreign-owned mining companies. He was quoted a saying, “We are converting mineral resources in the ground in exchange for equity in mines. Where we are going to have shareholding, we are not going to pay.” It is quite clear that the Zimplats saga is far from over. The CEO of Impala Platinum, David Brown, has made it clear that no shares in Zimplats will be transferred without payment.
As the general election in Zimbabwe, anticipated to be held in 2013 at the latest, draws nearer, the level of rhetoric on the subject of indigenisation can be expected to increase. It is, after all, a major part of the policy platform of ZANU(PF). What does remain to be seen is how far Minister Kasukuwere will go with the limited legal powers that he has to enforce his threats. There is also the question of the Bilateral Investment Protection and Promotion Agreement (BIPPA) between South Africa and Zimbabwe – how will this be used to protect major South African investments in Zimbabwe? While Ministers Biti and Mashakada emphasise the positive aspects of Zimbabwe as an investment destination, the on-going disputes over indigenisation will only work against their efforts.
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