Nestle, the Switzerland headquartered food and beverages giant which in 2009 was forced to buy milk from the First Family’s dairy farm had offered to dispose of 25 percent equity through Nestle Zimbabwe Pension Fund and an Employee Share Ownership Trust. Under the proposal Nestle wanted to dispose of 19.99 percent through Nestle Zimbabwe Pension Fund and %.01 percent through the firm’s Employee Share Ownership Trust.
But in a letter written to Nestle recently, Youth Development, Indigenisation and Empowerment Minister, Savior Kasukuwere, turned down the food giant’s proposals saying they don’t satisfy the indigenisation and empowerment regulations which compels all foreign owned companied to parcel out 51 percent shareholding to indigenous Zimbabweans.
“Your plan therefore falls short of the 51 percent indigenous shareholding requirement. In terms of Section 5 (1) (b) (iii) of the Indigenisation and Economic Empowerment (General) Regulations 2010, as amended, we hereby reject your Provisional Indigenisation Implementation Plan, as it does not meet the requirements of the indigenisation and economic empowerment legislation,” Kasukuwere said in his letter written to Nestle managing director, Kumbirai Katsande.
Kasukuwere’s indigenisation regulations have rattled several foreign owned firms who at one time halted investment and infrastructural development projects in protest against the populist directives.