Zimbabwe relaxes empowerment law to boost investment-govt paper

Zimbabwe relaxes empowerment law to boost investment-govt paper

HARARE  – Zimbabwe, suffering from economic recession and lack of foreign investment, is relaxing a black economic empowerment law forcing foreign-owned firms to sell majority shares to locals in a bid to attract investment, a cabinet minister said on Sunday.

Signalling a shift in policy, Christopher Mushohwe, minister for youth, indigenisation and economic empowerment, said the law would only be mandatory in the mining sector, which generates half of Zimbabwe’s export earnings and contributes about 17 percent of GDP.[pro_ad_display_adzone id=”70560″]

Foreign investors in other sectors would be able to negotiate with the government what proportion of their businesses they could sell to locals, he said.

“The only area where we do not entertain negotiations is mining, because as indigenous Zimbabweans, our contribution is the (mineral) resource,” Mushohwe told the state-owned weekly Sunday Mail.

“In other sectors, proposals are considered case by case. We are saying to the investors, if you come, your investment is safe, but we encourage you to partner locals,” he added.

The southern African country is struggling to recover from a catastrophic recession that was marked by billion percent hyperinflation and widespread food shortages.

Foreign investors say the Indigenisation and Economic Empowerment Act signed into law in 2008 requiring foreign-owned firms to sell at least 51 percent shares to locals, is the biggest obstacle to investing in the mineral-rich country.

President Robert Mugabe has defended the law, saying it aims to redress colonial-era imbalances.

Anglo American Platinum and Impala Platinum Holdings are the two largest mining companies operating in Zimbabwe and have previously expressed reservations with complying with the empowerment law.

Zimbabwe has the second largest reserves of platinum and chrome, but has lagged behind neighbours like Mozambique and Zambia in attracting foreign investment largely due to Mugabe’s economic empowerment drive and high political risk.

Outside mining, foreign investors are interested in Zimbabwe’s manufacturing and tourism sectors and infrastructure projects like power generation, but are often discouraged by the indigenisation law and red tape.

Zimbabwe has halved this year’s growth target to 1.5 percent while labour unions say more than 20,000 workers have lost their jobs in the last month as firms close due to power shortages, high cost of capital and competition from cheaper imports.(Reuters)

 

 

MTN News Alert
DMON
To receive our mobile newspaper on MTN delivered on your phone, text SAWD to 4900 at N50 per week or SAMD to 4900 at N150 per month.
For information on press releases, photos, promotional events and adverts, call or send text to 08173460599 or 08094208271or send email to: info@sundiatapost.com

Leave a Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

*

Sundiata Post Media Ltd.

Address: 3rd Floor Office Suite, Bayelsa State Guest House, Plot 1038, Shehu Shagari Way, Maitama, Abuja, Nigeria.
Tel: +234(0)92900705, +234(0)8173460599
Whatsapp: +234(0)8053069436
BBM PIN: 5619150D
Email: info@sundiatapost.com
Website: www.sundiatapost.com

Enugu Regional Office: SW 1 New Haven Shopping Mall, Enugu, Enugu State, Nigeria.
Tel: +234(0)7062582838
https://twitter.com/sundiatapost/

London Office: 18 Belgrave Avenue, Wd18 7UE, Watford, United Kingdom.
Tel: +447417554143
Dubai Office: PAU Management Suite, Level 23 - Boulevard Plaza Tower 2, Emaar Boulevard,
P. O. Box 124342, Dubai, UAE.
Tel: +971 4 4096849 | Fax: +971 4 409 6850
About Us

SundiataPost is published by Sundiata Post Media Limited, Sundiata Post is Nigeria’s most authoritative online newspaper and ranks among the top five online news platforms in Nigeria.

Guild of Corporate online publishers
ACCREDITED MEMBER
A Glance at Our Advert Rate.

Inside Pages

Size In Pixels - Amount

120×180 - N27,967.50

300×100 - N24,695

Text Link - N11,275

More Details info

About Us | Contact Us | Privacy Policy | Terms of Use | Advert Rate