Zimbabwe empowerment laws worry foreign investors

source: Mmegi

Controversial new policies to give black Zimbabweans majority stakes in foreign companies in the country have scared off investors from abroad, stock exchange Chief Executive Emmanuel Munyukwi said yesterday.

Munyukwi said in an interview, orders from foreign investors had dried up since the end of January when Zimbabwe moved to implement the Indigenisation and Economic Empowerment Act that requires foreign firms sell a 51 percent stake to local blacks

“Last year, our market was being driven by foreigners, upwards of 40 percent were foreigners and net buyers. But from the end of January with the gazetting of the indigenisation regulations, there has been a lot of uncertainty and foreigners have put a hold on their transactions,” Munyukwi said.

A minister said on Tuesday the transfer of control of foreign companies would begin [continue reading]

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