• Nene's SAA nemesis

    No political figure seems to have the guts to speak out against Dudu Myeni, says Solly Moeng.

  • The mp3 revolution

    Ian Mann takes a look at the war between digital music and the compact disc.

  • Don't take us for fools

    It's time for businesses to stop thinking consumers are gullible, says Mandi Smallhorne.

All data is delayed
See More

Zim equity laws must benefit poor - Gono

Jun 01 2012 22:36

hHarare - Laws forcing foreign companies to sell majority stakes to black Zimbabweans should be used to benefit the country's poor and not just the rich elite, the country's central bank chief said Friday.

And he warned that the so-called indigenisation process should exclude banks.

"The indigenisation programme should benefit the majority of the people of this country," Gideon Gono, governor of the central bank, told a conference on black empowerment.

"The programme must be transparent," he said.

"Indigenisation shouldn't be used for indiscipline, for economic banditry or for the cake going to the same people who benefited yesterday," he said.

Zimbabwe passed laws two years ago requiring foreign companies to cede 51% of their shares to "indigenous Zimbabweans".

These include Unki, owned by the biggest producer of platinum in the world, the British-South African combine Anglo American; and Zimplats, the local unit of the world's second-biggest platinum miner, South African's Impala Platinum.

But some fear only a privileged few will profit from these measures, in the same way just a few benefited from laws that expropriated white-owned farms a decade ago.

"Those who have already benefited must give others a chance," Gono argued, adding that the banks should not be subject to the indigenisation process.

"The money that is in the banks does not belong to Gono, or [George] Guvamatanga [managing director] of Barclays Bank here," he said. "It belongs to shareholders.

"It would be a great act of irresponsibility not to respect shareholders' money."

The indigenisation programme is at the centre of a dispute between President Robert Mugabe and Prime Minister Morgan Tsvangirai, who formed a coalition government three years ago after disputed polls.

Tsvangirai has said the indigenisation drive will drive away foreign investment, just as the country is recovering from a decade-long economic collapse.


Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Company Snapshot

We're talking about:


Marketing is a big concern in SA's small business community, followed by a lack of confidence and partnering with the wrong people, according to a survey.

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

The 25 basis points interest rate increase is:

Previous results · Suggest a vote