Local assets in Zimbabwe ‘are secure’

THE SOUTH African government was adamant that investments in Zimbabwe “are secure”, Trade and Industry director-general Lionel October said yesterday.

He said this after being pressed on whether Impala Platinum (Implats) subsidiary Zimplats – required by the Zimbabwean government to transfer 29.5 percent of its shares to a state fund by the middle of this month – would also be protected by an investment protection agreement between South Africa and Zimbabwe.

When asked why Zimbabwean Youth Development, Indigenisation and Empowerment Minister Savior Kasukuwere had demanded the handover and why he had accused them of delaying tactics, October suggested that matters were not dire. The minister had also threatened to cancel mining licences held by firms that did not carry out the indigenisation policy.

“They can come up with various forms (of indigenisation) such as restructuring the companies. It does not mean that you lose any assets or investments,” he insisted.

“For instance, (it could involve) setting up joint ventures or different shareholder arrangements.”

It could even mean setting up new mines to expand the existing asset base.

“There are many ways to skin a cat but it won’t be a reduction in assets and investments,” he said.

October acknowledged that the Implats investment in Zimbabwe was South Africa’s biggest investment in that country. That is why the bilateral agreement between the two countries was hurried along last year.

“There is a bilateral agreement (between South Africa and Zimbabwe). Last year our directorgeneral of international relations did visit his counterpart there. But we are aware of the issues there,” he said, noting that whatever investments and assets were in the country would “be protected”.

The bilateral agreement was law, he said, noting that there was a process of negotiation over the matter. “It is sacrosanct.”