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Zim to tone down black ownership laws

Zimbabwe is planning to tone down a contentious equity law which compels foreign companies to give up a majority shareholding to local investors, Independent Online reported

The law simply states that foreign companies operating in Zimbabwe should cede a 51% shareholding to local partners.

The indigenisation law did not sit well with foreign investors and divided President Mugabe allies, with some opposing the law while others took a positive stance to it.

Jonathan Moyo, the southern African country’s Information Minister, said the law would be adapted for different sectors.

“We are reviewing and tightening the indigenisation and empowerment policy by being pragmatic without being dogmatic about it,” he said to the state-owned Sunday Mail.

Under the law, foreign owners of Zimbabwean mines were told to surrender more than 50 percent of their shareholdings to local partners or risk nationalisation.

Source: Independent Online

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