Tongaat says social spending should count in Zimbabwe empowerment law

HARARE, March 19 (Reuters) – South African sugar producer Tongaat Hulett said its spending on communities in Zimbabwe should count as equity to enable the firm comply with a black economic empowerment law.

President Robert Mugabe’s government is promoting indigenisation of company ownership, forcing all foreign-owned firms to sell a minimum of 51 percent shares to blacks.

Tongaat said it has trained farmers, bought them farming inputs and paid for roads, schools and hospitals in communities where it operates in the southern African country.

“I respectfully submit that the indigenisation law requires review to remove the emphasis on shareholding and focus on empowerment credits,” Sydney Mtsambiwa, Tongaat’s managing director in Zimbabwe told a committee of parliament.

Empowerment credits are points awarded to a company for investing in communities and count as equity, authorities say.

Mtsambiwa said the requirement for foreign companies to sell their shares as stipulated by the law was scaring off investors.

In October 2012, the government gave Tongaat two weeks to submit a plan showing how it planned to sell 51 percent of its shares in its Zimbabwean operations, or face forcible seizure.

The government has not followed through on its threat but Mtsambiwa said very few foreign investors would accept losing control of their investment.

Mtsambiwa said Tongaat was developing 4,000 hectares of virgin land to resettle black cane farmers and had already secured $20 million from banks to fund part of the project.

This is part of a plan by Tongaat to use a total of 24,000 hectares of land to resettle black farmers, he said.

Tongaat has a 50.35 percent stake in Hippo Valley Estates and wholly owns unlisted Triangle Sugar Corporation. Both firms own sugarcane plantations in southern Zimbabwe.

Share this:

Arts & Entertainment

58 Trackbacks & Pingbacks

  1. Google
  2. brother edm filter
  3. superior auto institute
  4. the wristwatch exchange
  5. superior auto institute
  6. Silver Bullet Vibrator
  7. Dual Vibrator
  8. free app for pc
  9. free download for windows 7
  10. free download for pc
  11. kerala
  12. Android Fixed Rom
  13. best lion kona coffee
  14. Daily News owner buys Financial Gazette – 263AfricaNews
  15. pure kona beans
  16. free download for windows pc
  17. cheap A/C
  18. Google
  19. rotating vibrators
  20. piece work from home
  21. adam and eve sex toy
  22. Διακόσμηση
  23. peru travel
  24. clitoral stimulation
  25. diet
  26. eyebrows makeup
  27. desinfectionpunaisedelit
  28. wet wabbit
  29. Toy Papi
  30. wand
  31. Pleasure Vibrator
  32. penis enlargement pump
  33. eshop cy
  34. photography
  35. Download 3X0-103 Certification Dumps
  36. 2 year old healthy recipes
  37. amazon product Seo
  38. Fitness microphones
  39. best smm panel
  40. butt plug reviews
  41. vibrators for women
  42. Buy Adipex
  43. porn stories
  44. www.phenterminedispensary.com
  45. Cheap Philadelphia 76ers Jerseys
  46. 韓国エスコートアガシ
  47. 福井脱毛
  48. 福井脱毛
  49. 福井脱毛
  50. email processing jobs 2017
  51. Cheap Detroit Lions Jerseys
  52. سرور مجازی
  53. 鄰家英雄dvd
  54. coin shop
  55. Business
  56. motu and patlu
  57. http://motuandpatlugames.com
  58. Daytona beach Margaritaville

Leave a Reply

Your email address will not be published.


*