Nyashadzashe Ndoro
Chief Reporter
In a significant policy shift, President Emmerson Mnangagwa's government has announced plans to increase local shareholding in major mining projects to 26%.
This move marks a departure from Mnangagwa's 2017 decision to abandon the 51% local ownership rule for foreign investors.
According to Mines Secretary Pfungwa Kunaka, the government aims to secure a 26% stake in future mining projects, with negotiations already underway with current operators.
The policy reversal is viewed as a shift towards resource nationalism, aligning with efforts by many African economies to derive greater benefits from their mineral resources.
Kunaka stated that the government would negotiate with investors to structure the shareholdings, acknowledging that previous decisions made under different frameworks cannot be changed unilaterally.
“There is a general position, like in the case of mining, where we need to move to a level where we reach 26% shareholding in most of the big projects,” Kunaka told Bloomberg in an interview.
“We have some situations where there are already existing mines and new mines that will come on board. A lot of these things would require negotiations with the investors already on the ground.”
“Obviously, when you have decisions that were made some years back based on a certain framework, you cannot just, willy-nilly, go and change that. It takes negotiations,” Kunaka added.
This development comes after previous attempts to enforce the "indigenisation law" failed, with many companies choosing to exit Zimbabwe.
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