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Zim: We won't grab foreign firms' shares

Harare - Zimbabwe says its indigenisation policy is not necessarily cast in stone, and government will not grab foreign-owned companies’ shares.

True to those words, Zimbabwe has seen several companies coming in and investing more than the 51% stake.

On Tuesday Afrasia Bank Mauritius and an unnamed international partner said they will invest $20m into the local subsidiary, Afrasia Bank Zimbabwe. The new investment will see the Malaysian bank increasing its shareholding to beyond 63%.  

Addressing journalists on the $20m capital injection into Afrasia Bank Zimbabwe by the bank’s Mauritius controlling shareholders, Finance Minister Patrick Chinamasa said the government does not intend to grab 51% of investors’ money, as was claimed in some sections of media.  

"What is sometimes peddled is that you bring in your $20m and we take 51% of it. That’s nonsense. We have never said it and we will not do it. What we have said is that we want to encourage local participation on the basis of a given framework. The investors will pick their partner and also decide the price.

"That I think needs to be emphasised again and again. We are not going to get 51% of anyone's money. It's not the policy of this government," said Chinamasa.  

No one-size-fits-all model

He added that the Zimbabwean cabinet will soon consider a comprehensive indigenisation plan that will determine local ownership in foreign-owned companies on a sector by sector basis.  

According to the Financial Express, Chinamasa said Youth Development, Indigenisation and Empowerment Minister Francis Nhema will soon table proposals before cabinet to deal with foreign ownership on a sector by sector basis.

“Our understanding is that while there is temporary dilution, we will have a plan through which they can increase local participation over a given period. I have had discussions with my colleague, Minister Nhema, who is going to bring to cabinet a comprehensive plan which will handle this issue sector by sector.

"There is no one-size-fits-all - the only application of one-size-fits-all is that all sectors of the economy will have an equity model but that threshold will depend on sector to sector; over what timeline will also depend on sector to sector," said Chinamasa.  
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