Published Date:
06 November 2009
ZIMBABWE'S government has proposed that Zimbabweans take 51 percent ownership of all foreign companies in the country, including mines and banks.
Draft regulations said "indigenous Zimbabweans" should hold a controlling interest in each foreign-owned business in Zimbabwe with an asset value above $500,000.
Analysts immediately warned the move would unsettle investors and could further damage an economy already ravaged by the collapse of commercial agriculture following President Robert Mugabe's seizure of white-owned farms since 2000.
Zimbabwe passed an Indigenisation and Economic Empowerment law in 2007, which seeks to transfer control of all firms – including mines and banks – to black Zimbabweans.
The unity government formed by Mugabe and bitter rival Morgan Tsvangirai in February, had promised to be flexible in applying the empowerment law.
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Last Updated:
06 November 2009 10:39 AM
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Source:
Edinburgh Evening News
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Location:
Edinburgh
