Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
Zimbabwe's President Robert Mugabe addresses at a rally in Harare/AFP

Finance

Zimbabwe to tone down black ownership laws

Zimbabwe's President Robert Mugabe addresses at a rally in Harare/AFP

Zimbabwe’s President Robert Mugabe addresses at a rally in Harare/AFP

HARARE, May 26 – Zimbabwe is planning to tone down a controversial equity law which forces foreign companies to cede a majority shareholding to local investors, a cabinet minister said Sunday.

Zimbabwe’s controversial 2007 indigenisation law states that foreign firms must hand a 51 percent shareholding to local partners.

The law spooked investors and was a source of conflict between President Robert Mugabe’s allies, with some maintaining a hardline stance while others opposed the measures.

Information Minister Jonathan Moyo said it 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 told the state-owned Sunday Mail.

“(Foreign) investors will be allowed to recover their initial capital investment, an appropriate return on investment and operational costs before the sharing of production outputs or profits,” Moyo said.

Under the law, foreign owners of Zimbabwean mines were given an ultimatum to surrender more than 50 percent of their shares and find local partners or risk nationalisation.

Mugabe said the law, which followed controversial land reforms, was meant to reverse imbalances which resulted from colonialism.

But critics including opposition leader Morgan Tsvangirai said it would enrich Mugabe’s allies and scare away foreign investors.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...