of these laws. The industrial index which started the year at a high of 156, 52 had declined to 127, 46
by June 2010, while mining and market capitalisation fell from 209, 8 and US$3, 97 billion to 143, 08
and US$ 3, 19 respectively. Government has identified mining, energy, agriculture and agro-processing,
transport and motor industry, telecommunications and ICT, manufacturing, engineering and
construction and financial services as some of the sectors of the economy which will be targeted for
indigenisation under the law. The Indigenization regulations were also a source of conflict between
Zimbabwe and Botswana’s BIPPA negotiations18.
Meanwhile the Ministry of Indigenisation, Youth and Empowerment has been issuing out application
forms to those interested in acquiring part of the 51% equity. Of concern is the politicized and secretive
manner in which this process is being done. There are also questions as to whether resources are
available to support the purchasing of shares by locals. A worrying strand is the continual use of
political affiliation to expropriate businesses. The Herald of 2 July reported that Martin Mutasa, son
of ZANU-PF Secretary for Administration Didymus Mutasa, businessman Temba Mliswa and George
Marere, all linked to ZANU-PF, seized shareholding worth US$1 million from a company—Noshio
Investments. The trio allegedly claimed Indigenisation, Youth and Empowerment Minister Kasukuwere
had allowed them to take over the company and that they had President Mugabe’s backing. They
were arrested and later released amidst allegations that Mutasa and home-affairs co-Minister Theresa
Makone attempted to illegally secure their release.
Market Capitalisation Jan – June 2010
Mining and Industrial Index
Source: Zimbabwe Stock Exchange and Ministry of Finance
Chiadzwa Diamond Mining: By far the most contentious issue during the period under review was the
certification of diamonds mined at Chiadzwa in Manicaland’s Marange area. This has caused further
friction in the inclusive government, and even fuelled divisions within ZANU-PF. The Kimberly Process
monitor, Mr Abbey Chikane, came to Zimbabwe and recommended that the country be cleared to sell
diamonds from Chiadzwa. This was criticised by CSOs who claimed that there are still human rights
abuses at the Chiadzwa diamond mines. In a crackdown, the Director for Centre for Research and
Development, Farai Muguwu, was arrested and charged for publishing falsehoods against the
government. Maguwu wrote a report that highlights the ongoing human rights abuses at Chiadzwa
diamond fields.
. Indigenisation Stalls BIPPA Negotiations; Zimbabwe Independent, 4-10 June 2010, pp:4.
18
CIVIL SOCIETY MONITORING MECHANISM (CISOMM)
SIX MONTH SHADOW REPORT ON THE PERFORMANCE OF THE INCLUSIVE OF ZIMBABWE
15
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