51pc not enough: Zhuwao

Whinsley Masara Chronicle Reporter—
THE Minister of Youth Development, Indigenisation and Economic Empowerment Cde Patrick Zhuwao has said the 51 percent shareholding for locals stipulated under the country’s indigenisation law was not enough and should be reviewed upwards. He said his ministry will come up with measures in due course to ensure that Zimbabweans fully benefit from their resources.

Zhuwao said this at Mvundla Primary School in Bubi district during the handover of classroom blocks that were built using Bubi Community Share Ownership Trust funds.

“51 percent doesn’t make sense. If a mining company invests $100 million in infrastructure on the ground the resource they want underground will be having a value much higher than the investment. Shareholding for non-indigenous entities must be calculated on the basis of the infrastructure put on the ground in relation to the value of the resource in the ground, but for the time being we’ll continue using the 51 percent but we want to go to 80-90 percent because that’s the true value of our resource,” said Zhuwao.

“I say this because mining companies remain stubborn and intransigent and refuse to recognise that they don’t own a resource. All they own are pieces of steel and infrastructure on the ground that are worth only a fraction of the resource that they extract and leave us only with holes.”

He said within the next week or two, his Ministry will come up with a policy position in line with President Mugabe’s pronouncements that the contribution by mining entities must reflect the value of the resource in the ground.

“Mines in this district have been robbing the locals of their wealth and this has to end. It happened in the past, before we, Zimbabweans became a little more calculative. As the Ministry we’ve realised the need to raise these percentages so that we benefit accordingly,” said Zhuwao.

The deputy president of the chiefs’ council, Chief Mtshana Khumalo, castigated mining companies for not contributing to the community share scheme.

“It’s sad to say only one mine is giving back to the community while there are so many companies taking away the wealth of the community as well as the country. I’m glad the Minister is on the ground today to witness where pupils of such a rich environment are getting their education. Please note that this applies to the few who can manage to walk the long distances in between the schools because these small children walk more than nine kilometres to school,” said the Chief.

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  • Lunga


  • Mixed Race

    This young and inexperienced minister must realize that minerals on their natural unprocessed nature are not worth much until they are processed to steel and other finished products.This is why the president has been asking these mines to have their products processed here to add value.It takes years for a well established mining company to make real profit,because it has to pay for the initial expenditure used to build the mine.The problem is that when he talks about mining he thinks of these crooks who used simple and basic mining tools which are used by locals.Our diamonds were a gift from God because they could be picked easily from the surface.

  • Chombomanja

    If we can do more than 51% why would we need investors we may as well do it ourselves.

  • Bekithemba Ncube

    If the pieces of still that companies put up have no value, why cant the indigenous people put them up? The fact that you cant erect structures and don’t have the technology means you have to do with foreign investment. I agree with Chombomanja that if its 90%, why talk of foreign investment? Its almost 100%. Just start your 100% Zimbabwean mining company. Period. This Zhuwawo guy is dull.

    • big

      Look at his face and head? Doesn’t it speak of something funny in his brains? Kikikikikikiki!!!

  • Buffalojump

    This should be in the cartoon sector.. It’s hilarious !!!!

    So many speak with a forked tonque. We encourage investment out one side then the other side of the tongue speaks and it says “sucker, go way”.

    And in the meantime the breadbasket of Africa has a need for foodaide for 3 million people.

    Like I said, this should be in the cartoon section.

  • bexilford

    This man needs to be educated about the real world. This explains why the country is in the state it is in. Ministers should be in position according their skills, for the economy to recover. We have a government which cannot even feed or educate its people, and they keep on destroying everything they touch. The gold rush boosted the American economy, and many countries like Australia have benefited from past ten years of high commodity prices while we have nothing to show for it. I would like to remind him that we now have a Harare based company harvesting Timber in Lupane, without the people of Lupane benefiting from the Timber. Lupane Timbers was given a licence to cut the trees and process the timber in Harare leaving 50 people in Lupane without jobs they used to have when a local company lost its licence. You would have to be a fool to invest in Zimbabwe when there is no respect of property rights. Look what happened to Lupane gas when the French company lost it’s licence. Nothing has happened, since there is no sane company which will invest $100 millions if you can be booted out at any time