THE Affirmative Action Group (AAG) says indigenous investors should be included in bidding processes for the acquisition of local firms whenever such opportunity arises.

AAG, an empowerment lobby group, said some businessmen in the country possessed the financial muscle and capacity to acquire and operate big companies.

This comes after it emerged that French company Holcim Limited intended to dispose of Lafarge Cement Zimbabwe to Huaxin, a Chinese cement maker.

Media reports have speculated that Huaxin Cement of China (a Holcim shareholder) was the potential buyer given a noticeable trend of acquiring Lafarge operations in the region.

In 2021 it the Chinese company acquired Lafarge Cement Malawi and a 75 percent stake in Lafarge Zambia while in 2020 Huaxin bought Tanzania's Marvini Limestone.

Lafarge Cement is one of Zimbabwe's biggest cement companies and has been increasing its investment in the country particularly considering the growing demand for cement.

However, AAG expressed reservations over apparent exclusion of locals in the bidding for the cement manufacturing company saying local businessmen and companies should not be overlooked.

The lobby group said indigenous businessman possessed the capacity to buy and operate companies as big as Lafarge Cement Zimbabwe.

AAG vice president Munyaradzi Kashambe said such deals must be done in a way that gives locals the chance to participate.

"... we have got a case of concern as AAG; we read (in the media) that Lafarge Zimbabwe, whose original owners are the French under the company called Holcim, is selling or they have already sealed a deal with another foreign company from China to take over Lafarge Zimbabwe.

"Our concern is that this whole transaction has happened or is happening without our local participation, we are advocating for our local participation in deals of this nature," said Mr Kashambe.

He said some of the Zimbabwe companies had the financial wherewithal to assume proprietorship and successfully run big operations in the country.

"As Zimbabwean business people, I can rest assure you that we have the propensity and capacity to acquire Lafarge not on a grabbing basis but on a business basis win-win situation.

"The amount of money we hear this French company is asking for we have got it as Zimbabweans, we have got banks that we can engage, we have local business people who are rich who have got money to invest in this," he said.

Mr Kashambe cited the Emergency Road Rehabilitation Program (ERRP) as an example of the capacity of locals as they have been successfully participating in roads renewal projects.

"... so we want the acquiring process of Lafarge to involve locals, to be given a chance to buy and see if some of the indigenous business people are not able to purchase," he said.

AAG however said it had written to the responsible authorities including the President and Ministry of Industry and Commerce suggesting the need for a deeper look into the Lafarge issue so that Zimbabwean business people can participate.

Copyright The Herald. Distributed by AllAfrica Global Media (allAfrica.com)., source News Service English