BAT Zimbabwe Working on Indigenization Plan

Source from:  Tobacco Reporter 08/23/2011

British American Tobacco told Tobacco Reporter earlier today that it had submitted at the end of June a provisional indigenization plan for its company in Zimbabwe. BAT had been asked to comment on a story in the Herald newspaper, reported by Agence France Presse, that it was one of 13 'foreign' firms that had been given an 'ultimatum' to sell off majority stakes to local partners or risk government takeover. The ultimatum was said to have come in a letter of July 28 signed by the Indigenization Minister, Saviour Kasukuwere. The companies have to submit by September 25 plans detailing how they intend to meet the requirement for 51 per cent direct equity participation by locals within five years. The move has the support of President, Robert Mugabe, who says the regulations will correct the economic imbalances created by the country's colonial past, but Prime Minister, Morgan Tsvangirai, has said it will discourage investment. Meanwhile, in a statement, BAT said: 'We submitted our Provisional Indigenisation Plan on 30 June 2011. 'The Honourable Minister of Youth Development, Indigenisation and Empowerment has since written to BAT Zimbabwe in response to our Preliminary Indigenisation Plan and we have responded ‒ requesting further information and guidance on how we comply with the requirements of the legislation, even while we wait for our sector requirements to be gazetted. 'Our position is that, in Zimbabwe, the Company operated prior to Independence and is still open for business in post-Independent Zimbabwe. One of the reasons for its success is its policy of having respect for the Government of the day, and obeying the laws, customs, traditions and usages of the country to the letter. 'Our business is, and always has been, the manufacturer of quality products for the local market and we have done so successfully for over 100 years. Ours is a long-term commercial investment that has weathered the dynamics of supply and demand during this period. Our focus and competence is only in commercial interests from which all stakeholders derive mutual benefit.' Enditem