The Zimbabwean government plans to change the provocative Indigenisation and Economic Empowerment Act to permit non-payment of the 51 percent equity from foreign-owned firms.

The Naspers-owned financial news website cited Zimbabwe’s state newspaper, The Sunday Mail, as saying the Zimbabwean government is working on a new legislative framework.

According to Fin24, the newspaper said through this framework Zimbabweans will be allowed to utilise mineral resources on mining claims as a contribution for equity in foreign mining ventures, while also relegating the vendor financing model which was used in the acquisition of a stake in Zimplats.

The Sunday Mail stated that the ministry of youth development, indigenisation and empowerment is working closely with the attorney general’s office to make into law the planned amendments.

“Presently, the Indigenisation and Empowerment Act (especially Chapter 14 of 2007) does not allow for the expropriation of shares by the government for indigenisation purposes but allows for shares to be acquired at fair market value,” according to the newspaper.

“However, the proposed amendments that are expected to be finalised soon are designed to ensure that ‘the people of Zimbabwe benefit fully, and without cost whatsoever, from enterprises that exploit their God-given natural resources’.”

President Robert Mugabe has been reported as saying the value of minerals underground should be used as the payment contribution for the 51 percent indigenous shareholding.

In March this year Mugabe attacked Empowerment Minister, Saviour Kasukuwere, for signing off the Zimplats indigenisation compliance transaction which has left the taxpayer facing a possible $350 million knock.

Fin24 reported that during an interview with state media to mark his 89th birthday, Mugabe said mineral resources belong to Zimbabwe and should make up the country’s 51 percent contribution to the business.