Ownership Structure of the Manufacturing Enterprises in Zimbabwe: Brief Documentation of Data Computerization, Volume 2

Abstract

The Ministry of Industry and Technology charged with the duty to direct the development of industry in Zimbabwe has as one of its objective the maximization of local ownership of industry in order to reduce the disbenefits associated with preponderant foreign control of economic activity in the country. To provide background to this effort the Ministry has assigned ZIDS to assess the extent of foreign ownership of capital in the country's manufacturing sector. This report represents the results of such an assessment. The report is based on a survey of ownership data for some 667 companies in the manufacturing sector. The data, most of which came from records available from the Registrar of Companies, indicates that the 667 companies surveyed together have a total issued share capital of $546.1 million about 38% of which is foreign owned. The foreign ownership is distributed among 14 different countries with Britain and South Africa together controlling aDout v 29% of total issued share capital or aDout 70% of all foreign owned capital. The rest of the countries each own sprinkles of the remaining 30%. \ Local ownership is not as low as generally argued. Our estimates place this v at bout 58% of total manufacturing issued share capital held by the 667 companies. Our study excluded the metal goods sector. Inclusion of this sector would most likely increase the share of manufacturing sector capital held by locals.