In a major climb-down, the Government is in the process of reviewing the indigenisation and empowerment policy to facilitate sector-specific implementation. The developments will be viewed as an apparent victory for policy moderates like Dr Gideon Gono who was a vocal dissenter during his time at the Reserve Bank against indiscriminate implementation of the policy in the banking sector.
Ultimately, the review will allow investors to recover initial capital investment, receive an appropriate return on investment and recoup operational costs.
Information, Media and Broadcasting Services Minister Professor Jonathan Moyo told The Sunday Mail in an interview that the Production Sharing Model (PSM) and the Joint Empowerment Investment Model (JEIM) have been identified as the foremost vehicles through which the indigenisation policy will now be implemented.
PSM is a broad cover for an assortment of production sharing agreements signed between governments and extraction companies concerning how much of a resource extracted from the country each will receive.
The agreements are popular in the oil-rich Middle East.
Following this model, Zimbabweans would retain 100 percent ownership of mineral resources and agricultural land.
Investors will be allowed to recover their initial capital investment, an appropriate return on investment and operational costs before the sharing of production outputs or profits.
Under the JEIM, outside mining, agriculture and particular tourism investments, locals will be encouraged to enter joint ventures as a way of generating capital to build wholly Zimbabwean-owned enterprises.
The proposed amendments to the Indigenisation and Economic Empowerment Act are a significant departure from the previous Government position which insisted on a blanket approach in which foreign companies would have controlling stakes to indigenous Zimbabweans, regardless of sector.