Business / Companies
Foreign banks in Zim can keep majority stakes, for now
23 Apr 2014 at 16:20hrs | Views
Zimbabwe will not take any foreign investment capital as part of its controversial indigenisation policy, the finance minister said Tuesday
The indigenisation law, introduced in 2010 with the aim of empowering local people, forces foreign companies to cede majority shares to Zimbabwean partners.
So far it has only been applied to mines, but critics say the policy has been a deterrent to badly needed investment.
"We are not going to get 51 percent of anyone's money, it's not the policy of this government," said Patrick Chinamasa.
"What is sometimes peddled that you bring in your $21 million and we take 51 per cent of that it's nonsense," he told reporters.
"We have never said it and we will not do it."
Veteran President Robert Mugabe vowed after winning last year's elections by a landslide to pursue controversial indigenisation policies with "renewed vigour".
But Chinamasa told the government was drawing up a "comprehensive plan which will handle this issue sector by sector".
The indigenisation law, introduced in 2010 with the aim of empowering local people, forces foreign companies to cede majority shares to Zimbabwean partners.
So far it has only been applied to mines, but critics say the policy has been a deterrent to badly needed investment.
"We are not going to get 51 percent of anyone's money, it's not the policy of this government," said Patrick Chinamasa.
"What is sometimes peddled that you bring in your $21 million and we take 51 per cent of that it's nonsense," he told reporters.
"We have never said it and we will not do it."
Veteran President Robert Mugabe vowed after winning last year's elections by a landslide to pursue controversial indigenisation policies with "renewed vigour".
But Chinamasa told the government was drawing up a "comprehensive plan which will handle this issue sector by sector".
Source - Sapa-AFP
