Govt told to focus on luring investors

HARARE - Zimbabwe Platinum Holdings (Zimplats), the country's largest
producer of platinum, has called on the government to focus more on luring
foreign investors than on its controversial economic empowerment drive.

The firm that has said it is ready to pump in a further $500 million to
expand its operations but is holding out until there is clarity on the
government's indigenisation policy said it supports any effort to empower
locals.

But Zimplats said such efforts to increase the participation of locals in
the economy should be carried out in a way that does not "compromise
Zimbabwe's desire to be seen as a preferred investment destination".

Writing in the company's annual report to shareholders, Zimplats chairman
David Brown said: "It is our firm belief that at this time, Zimbabwe's
greatest need is for increased levels of foreign direct investment to create
more employment in the country.

"We therefore urge the authorities to implement this law in a way that does
not compromise Zimbabwe's desire to be seen as a preferred investment
destination."

The government earlier this year published rules demanding that
foreign-owned companies should cede 51 percent of their shareholding to
locals, a move that scared investors and divided the unity government.

The government later revised the law and last month named committees to
recommend varying percentages of shareholding foreign-owned companies in the
different sectors of the economy must transfer to locals.

Zimplats and other firms especially in the mining sector that have invested
heavily in social infrastructure such as roads, schools and hospitals want
these to be converted into empowerment credits, which would mean they would
not be forced to cede too much stake to blacks.

President Robert Mugabe has previously said the government had accepted the
principle of empowerment credits as a vital component of the indigenisation
law.

While Mugabe insists that the empowerment programme is meant to ensure
blacks have control of the country's economy and resources, critics say the
ZANU PF leader wants to press ahead with transferring majority ownership of
foreign-owned companies as part of a drive to reward party loyalists with
thriving businesses. -- ZimOnline