Zimbabwe foreign firms face local control

source: Mmegi

Foreign-owned businesses operating in Zimbabwe, including banks and mines, will be forced to sell a majority stake to locals within the next five years under government regulations due to take effect in March.

But Prime Minister Morgan Tsvangirai said the rules, which are seen as a serious blow to efforts to lure foreign investors, were null and void because they were published without being reviewed by him or the cabinet.

The dispute reflects growing tension in the country’s year-old coalition government formed between Tsvangirai’s Movement for Democratic Change (MDC) and President Robert Mugabe’s ZANU-PF.

According to a copy of the regulations, seen by Reuters on Wednesday, indigenous Zimbabweans should hold a controlling interest in foreign-owned businesses with asset values above $500,000.

Zimbabwe’s Parliament in late 2007 passed an [continue reading]


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