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Harare - The rift between Reserve Bank of Zimbabwe governor Dr Gideon Gono and Empowerment Minister Saviour Kasukuwere over the "unprocedural" signing of indigenisation deals for foreign mining companies in Zimbabwe is widening.
There have been differences between the two officials over the empowerment policy, with President Robert Mugabe intervening last week by ordering that lower indigenisation thresholds be implemented for the banking sector.
Kasukuwere wants all foreign firms to cede 51% stakes, while Gono wants this threshold lowered for banks.
The dispute between Gono and Kasukuwere over the implementation of the controversial policy has led to concerns over the manner in which empowerment deals were rolled out for Zimplats, the Zimbabwean subsidiary of Impala Platinum Holdings [JSE:IMP] (Implats), and other foreign-owned mining companies.
Gono said on Thursday that some indigenisation deals had been signed behind the back of the central bank, despite the institution having final authority to pass any transactions involving transfer of value and the subsequent payment for the exchanged value.
"If you do things out there, we will not let you pass because we are the final line of defence.
"If it involves transfer of value, subsequent payment, deals with externals or locals, it’s important that we dialogue and we give guidance on what will or what will not pass," said Gono at a briefing of Zimbabwean industrialists on Thursday.
This further fuelled sentiment that Implats may have to renegotiate its indigenisation plan after it agreed to provide vendor financing - which has to be paid back - for indigenous Zimbabwe groups to acquire 51% in Zimplats, a significant unit that employs about 10 000 people in Zimbabwe.
- Fin24
There have been differences between the two officials over the empowerment policy, with President Robert Mugabe intervening last week by ordering that lower indigenisation thresholds be implemented for the banking sector.
Kasukuwere wants all foreign firms to cede 51% stakes, while Gono wants this threshold lowered for banks.
The dispute between Gono and Kasukuwere over the implementation of the controversial policy has led to concerns over the manner in which empowerment deals were rolled out for Zimplats, the Zimbabwean subsidiary of Impala Platinum Holdings [JSE:IMP] (Implats), and other foreign-owned mining companies.
Gono said on Thursday that some indigenisation deals had been signed behind the back of the central bank, despite the institution having final authority to pass any transactions involving transfer of value and the subsequent payment for the exchanged value.
"If you do things out there, we will not let you pass because we are the final line of defence.
"If it involves transfer of value, subsequent payment, deals with externals or locals, it’s important that we dialogue and we give guidance on what will or what will not pass," said Gono at a briefing of Zimbabwean industrialists on Thursday.
This further fuelled sentiment that Implats may have to renegotiate its indigenisation plan after it agreed to provide vendor financing - which has to be paid back - for indigenous Zimbabwe groups to acquire 51% in Zimplats, a significant unit that employs about 10 000 people in Zimbabwe.
- Fin24
