• Caught in the debt trap?

    Help us help you by taking our second annual Debt survey and you could win R3 000.

  • Rich man, poor man

    Culture change from below is the only way to overcome poverty, says Leopold Scholtz.

  • Tech bubble talk

    After the tech euphoria of 2013, the fast-moving sector has hit a speed bump.

Data provided by McGregor BFA
All data is delayed
Loading...
See More

Zimbabwe mines seek compromise

May 19 2010 15:23

Related Articles

Tsvangirai: No political crisis

Zim's Gono keeps top job

Zim mining stakes to be 'grabbed'

Mugabe: Zim law to stay

Zim halts controversial law

Zim likely to cut growth forecast

 
Harare - Zimbabwe's Chamber of Mines on Wednesday proposed a compromise in the government's drive to force foreign firms to give a 51% stake to locals, saying 15% local shareholding for mines was enough.

Chamber president Victor Gapare said government should recognise that most mining companies built schools and roads in the areas where they operate, benefiting nearby communities.

"From a broad-based empowerment point of view, you have to look at things like schools, hospitals, roads and all the developments which takes place around mining communities, and in our minds that's true empowerment," Gapare told a news conference.

An indigenisation law that took effect on March 1 requires foreign firms valued at more than $500 000 to cede at least a 51% stake to locals.

Firms had been given 45 days to report their efforts at complying, but the deadline has been extended indefinitely.

The government says mines will be the law's first target, but Gapare said Harare should consider requiring only 15% local shareholding.

"The position which we put together says a minimum of 15% equity," Gapare said. "The rest to make up 51% will be in the form of social responsibility programmes" like building schools and hospitals.

"The mining companies are finding it very hard to attract capital. What we hope is that as the perceived country risk of Zimbabwe comes down, companies will be able to attract capital," he said.

In the first month after the law was published, Zimbabwe's stock market fell about 10%, while mining shares dropped 20%.

- AFP

 

NEXT ON FIN24X

 
 
 

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
16 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're Talking About: Small Business

Standard Bank is looking for 12 entrepreneurs to participate in a 10-part TV series. They could win a R1m investment into their dream.
 
 

The rich will pay - Mpofu

The EFF in Gauteng will focus all its energy on improving the lives of the poor, the party's premier candidate Dali Mpofu says.

 
 

Latest elections multimedia

Watch what happened when we blindfolded Helen Zille and asked her to eat random things
13 days to elections - news you need to know
11 Julius Malema quotes you'll never forget
DA won't get 30% - Zille

Money Clinic

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