Government Rejects Chamber of Mines Proposal on Indegenisation

The Chamber’s president, Winston Chitando said the chamber of mines had proposed to the government to cede 26 % of the foreign owned mining companies shares to indigenous Zimbabweans while 25% will be made from credits arising from corporate social responsibility.
“Our proposal was rejected by government. They said they preferred to handle to handle each mining company differently for them (companies) to comply with the indigenisation requirements. As we speak that exercise is being done,” he said.
Chitando said the Chamber of mines believes the exercise should be done in a way that will achieve the twin paramount objectives of growth and development of the industry and the Zimbabwe economy

“The Chamber’s own proposals to Government had been for a minimum indigenisation quota of 26 % equity with the balance of 25 % made up of credits arising from corporate quota social investments, support to the small scale mining sector, local procurement ,skills development, release of ground and establishment of new businesses,” Chitando said.

Chitando said that the mining industry requires huge capital investments which locals cannot raise. The mining group has also said the government must be consistent with its policies to attract foreign direct investments.