Moyo Calls for Reinstatement of Indigenization Laws to Protect National Interests
The government has been urged to reconsider the Indigenization and Economic Empowerment Act to protect Zimbabwe’s mineral wealth, Mining Zimbabwe can report.
By Rudairo Mapuranga
According to Zimbabwe Miners Federation (ZMF) Secretary for Gemstones, Mr Privelage Moyo, the current investment landscape, which allows foreign investors to hold majority stakes in mining projects, undermines Zimbabwe’s long-term economic interests.
Speaking at the Zimbabwe Alternative Mining Indaba (ZAMI) 2024, Moyo argued that Zimbabwe’s abundant mineral resources far outweigh the value of foreign investment. He highlighted the example of small-scale miners who, despite limited capital, can extract substantial amounts of gold, whereas foreign companies with only modest capital investments are able to extract even more valuable minerals.
“With our vast mineral wealth, we cannot just give away equity to whoever comes simply because they have money. The value of our minerals far exceeds any investment brought in,” Moyo said.
Moyo emphasized the need for inter-ministerial coordination to ensure mining operations align with the needs and aspirations of local communities. He criticized the lack of consultation with local authorities, especially traditional leaders, which often leads to social tensions and conflicts.
“Civil organizations must push for better synchronization between government ministries, ensuring they work hand-in-hand on issues affecting communities. When one ministry operates independently of another, problems arise. This disconnect can result in local chiefs feeling sidelined, as they often only learn about new investments once they are already established, creating a lack of trust and increased tension,” Moyo added.
Furthermore, Moyo called for greater regional integration and value addition within Africa. He urged Zimbabwe, as the current Southern African Development Community (SADC) chair, to advocate for policies that encourage mineral processing within the continent rather than exporting raw materials. This, he argued, would create jobs, stimulate economic growth, and ensure the benefits of mineral wealth are shared across African nations.
“Africa needs to process its minerals here, ensuring that communities and people are not deprived,” Moyo asserted, stressing the need for a structured approach to retain the value chain within Africa.
Moyo’s insights highlight the urgency of reinstating indigenization laws to protect Zimbabwe’s mineral resources and promote sustainable economic empowerment. By advocating for a balanced approach to foreign investment and prioritizing local needs, Zimbabwe can ensure that its mineral wealth translates into tangible benefits for all citizens, fostering a prosperous and equitable future.
In 2018, the Zimbabwe government amended the Indigenization and Economic Empowerment Act to limit its application to designated diamond and platinum mining businesses. These amendments, published in a March 14 Government Gazette Extraordinary, expanded ownership of businesses in the 12 reserved sectors to “citizens of Zimbabwe” rather than “indigenous citizens.”
Non-citizens who commenced business before January 1, 2018, are permitted to continue operating, provided they register with both the Zimbabwe Revenue Authority and the Indigenous and Economic Empowerment Unit and Fund. The new fund, housed within the designated ministry and staffed by civil servants, replaces the former National Indigenization and Economic Empowerment Board, which functioned autonomously outside the civil service.
Additionally, non-citizens operating businesses in designated areas are required to open and maintain bank accounts in compliance with the law. The amendments also extend certain pre-existing tax incentives and offer businesses the opportunity to revise indigenization implementation plans previously approved under the 2010 law.
The extent to which the Indigenization and Economic Empowerment (General) Regulations of 2010 remain in force is currently unclear.