Indigenisation and Empowerment Minister Saviour Kasukuwere said that the government of Zimbabwe had not thrown out all 175 indigenization proposals that it had received from mining companies.
There were rumors that the government had done so and that the firms that did not meet the September 31 deadline for transferring the majority stake of 51% to the blacks in the country would be booted out.
President Robert Mugabe's Zanu-PF party, to which Kasukuwere belongs, says the policy is necessary to ensure that black Zimbabweans benefit from the country's lucrative mineral resources. Kasukuwere said in an interview that they had received 175 proposals from mining companies and while they were not entirely happy about it, they had received the bids and were proceeding and doing their job.
He added that the proposals were that 26 percent would be done through social credits and 25 percent direct equity. The government had rejected the offer of 26 percent in social credits. Social credits were the notional equity points that a company could earn by investing in infrastructure and local development projects for roads, schools and hospitals.
As per the minister it was the job of the government to provide infrastructure and not the mining firms so they would work with what was here now while they pursued the remaining 26 percent equity. The nation has abundant natural riches which include diamonds, uranium, platiumum, gold, chrome and methane gas. However foreign investment may be dissuaded if the current policies continue.