QUESTION 3/5 How exactly does when benefit from Indigenisation? It seems like only ministers are benefitting. ANSWER Thank you for your candid question. Indigenisation benefits you in different ways depending on who you are and where you live. A few examples. Take Blanket Mine for instance. That company is now fully indigenised. What does this mean in terms of real world deliverables? 1.) Those who live around the mine are now benefitting directly from that resource. The Gwanda Community Share Trust own 10% of that mine and is receiving a dividend from that company. To date they have received over $5million dollars which they have used for various projects including an irrigation system for the community. In addition the community is partnering with the mine to create a stone crushing project that will create jobs. 2.) The employees own another 10% of that mine. That means ordinary miners get a share of the wealth derived from the gold they are mining. The harder they work the greater the return they get. The company has a staff turnover rate of below 1% which means those employees are happy. 3.) The wider nation will benefit from shares that are held in what is called the NIEEF (National Indigenisation and Economic Empowerment Fund) which is a type of wealth fund that pools together shares from indigenised companies. The dividends paid will go a long way in helping us fund hospitals and social services. There is a lot more to say on this matter but space does not permit. I must accept that our communication was not what it could be. The new government will do more to share this information, so all of us understand what is that is happening. The idea that a minister can take shares is based on a poor understanding of how these deals are structured. Thank you again for your question. ~SK~
Posted on: Sun, 08 Sep 2013 16:17:30 +0000
Trending Topics
Recently Viewed Topics
© 2015