The Platinum Producers Association of Zimbabwe (PPAZ) says government should consider setting up a think-tank to provide its policy planners with expert advice on how to formulate mining industry laws and policies that can spur growth and stimulate foreign direct investment.

This follows an outcry over mining fees and the standoff over the implementation of indigenisation and mineral beneficiation laws, which remain.

PPAZ chairperson Herbert Mashanyare says the think-tank would advise government on investment policy formulation.

“The think-tank we are proposing should be an advisory board working with government planners in crafting laws that will encourage investment in the mining sector. The policies should also stimulate growth in the downstream economic sectors that depend on mining.

In other words, the think-tank should help government improve the investment climate, improve security of assets and reassure investors that we are a safe and profitable mining destination.”

He says the envisaged think-tank would facili-tate high-level interactions between represen- tatives from government, the private sector, the banking sector and existing and potential investors. The country’s mining industry is strug-gling to come to terms with the indigenisation law and the recent local beneficiation directive from government.

Although most mining houses agree with government on the need for both indigenisation and pre-export mineral beneficiation, they argue that the timing is imperfect, given the country’s weak economy.

Governing Zanu-PF party spokesperson Rugare Gumbo says the party’s decision-making body is adamant that the shareholding structure for the mining sector would remain 51% for locals and 49% for foreigners. Shareholding structures in sectors like manufacturing and finance will be negotiated on a case-by-case basis.

He says Zanu-PF and government have directed Indigenisation and Economic Empower-ment Minister Francis Nhema to draft a legal frame-work for the implementation of the policy, but rules out any reforms in the mining sector.

“In mining, which deals with natural resources, the policy remains at 51%:49%, but, in other sectors that deal with manufacturing and the financial sector, the shareholding will be negotiated. Anything outside mining will be negotiated.”

Economic commentator Erich Bloch says government needs to reform the indigenisation law if the mining sector is to work again.

“The indigenisation legislation has caused many nonresident investors to disinvest hurriedly. It is an enormous deterrent to investment in Zim-babwe. As a result, the economy has continuously struggled along, with much of the population suffering intense hardships, government being constantly bankrupt, and very little effective indigenisation being achieved.”