3 July 2012

Zimbabwe: Statement On the Indigenization of Banks and Private Educational Institutions

Photo: IRIN
Hope in Harare.

press release

The Ministry of Youth Development, Indigenization and Economic Empowerment last Friday gazetted a notice announcing that all foreign-owned banks and other sectors including privately-owned educational institutions will be grabbed in line with the controversial indigenisation laws.

The Prime Minister would like to inform the public and the concerned stakeholders that there is no such government position because no such issue has been discussed and agreed upon by Cabinet.

Government has not sanctioned the Minister’s actions that are a threat to investment in the country.

The Indigenisation and Economic Empowerment Act does not empower the Minister to act and to project an image of a voracious government keen to compulsorily grab
almost all institutions and companies in the country.

Section 21 (1) of the Act gives the Minister the mandate to make regulations to give effect to the Act. The Minister has not issued a Statutory Instrument but a Notice which in itself is unlawful and the contents of which are ultra vires the Act.

We reiterate the position that the Prime Minister of Zimbabwe has executive powers and the Constitution of Zimbabwe bestows him with the authority to oversee and supervise “policy formulation and implementation.” The government forum that deals with implementation of government policy is the Council of Ministers, which has not discussed or approved the purported government position captured in the public notice.

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