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Minister Mike Bimha

Walter Mswazie, Business Correspondent
GOVERNMENT is working on crafting legislative provisions to clarify changes to the Indigenisation and Economic Empowerment Act.

Recently, President Emmerson Mnangagwa announced that the Indigenisation and Economic Empowerment Act will only be applicable to the country’s diamond and platinum mining sector, raising hopes for massive Foreign Direct Investment.

Initially the Act covered all sectors of the economy with foreign investors with businesses operating in the country required to cede 51 percent of their shares to indigenous investors and this has been blamed for scaring away potential foreign investors.

In an interview, Industry and Commerce Minister Dr Mike Bimha said Parliament was seized with crafting the new provisions which will give more clarity on the reviewed Act.

Minister Bimha said the revised Act is meant to instil confidence in foreign investors.

“President Mnangagwa has made it clear that the Act has been changed and the 51/49 percent threshold will only apply to the mining of two minerals (platinum and diamond).

“If a foreign investor wants to mine diamonds or platinum, the Act will be applicable.

“Parliament is sitting as we speak and we expect the legislators to come up with the new SI guided by the Finance Act, to that effect. This instils hope for more FDI,” he said.

Dr Bimha said the country is already receiving inquiries on investment with most of the investors keen on venturing into the manufacturing sector.

“Following the President’s pronouncement, we are already getting inquiries from foreign investors and most of them are into manufacturing.

“The country is open for FDI and even without  crafting of SI, their monies will be very safe in Zimbabwe.”

Meanwhile, a South African tycoon Mr Robert Matana Gumede arrived in the country on Sunday night to cement a $1.2 billion investment deal in key sectors of the economy that include infrastructure development, energy, health services, tourism and financial services.

His visit follows a meeting he held with President Mnangagwa on December 21 last year in Pretoria, South Africa.

Mr Gumede is the founder and executive chairman of  Guma Group and also the co-chair of the South Africa-Russia Business Council.

@walterbmswazie3