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The facts of the Zimbabwean Indigenisation law clarification

Very few will require persuasion in order to accept the importance and significance of empowerment of indigenous Zimbabweans and all historically disadvantaged people of Zimbabwe. Corporate social responsibility and balancing the interests of investors and those of communities where the investment takes place are indeed important emerging human rights issues particularly in the area of extractive industries.

Furthermore, few will require a lecture to appreciate the negative impact on investment inflows into Zimbabwe, of an empowerment programme focused on equity and transfer of control from the investor. Consequently, the Zimbabwian cabinet ministers ought to be congratulated for identifying the nexus between the implementation of our indigenisation laws and the poor inflows of investment into our country. The current law has many philosophical and technical defects which require urgent attention.

That is not, however, the subject matter of this article today. Sternford Moyo confines himself to clarify the recent clarification of the indigenisation law and leave you to determine whether more should have been done.

On January 8, Youth, Indigenisation and Economic Empowerment minister, Patrick Zhuwao, published a government notice executed by him on the January 4 in which he replaced and substituted in its entirety the notice published in the Government Gazette Extraordinary on December 24 2015.

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Article written by: Sternford Moyo – Corporate lawyer and a Senior partner at our member firm  Scanlen & Holderness.

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