Abandon toxic laws, says RBZ Chief

Reserve Bank of Zimbabwe (RBZ) governor John Mangudya has boldly called on government to make prudent policy decisions including abandoning laws that discourage production and industrialization as a means to sustainably deal with challenges besetting the economy.

Zimbabwe in 2007 passed the Indigenization and Economic Empowerment Act, which compels all foreign owned companies to relinquish controlling equity stakes to Zimbabwean locals and has been the center of a debate and controversy in government in recent years with some quotas calling for the law to be repealed.

Government has made various statements to the effect that it is willing to negotiate on a case-by-case basis and give some form of flexibility, but it seems foreign investors remain wary of the policy and have adopted a wait and see attitude.