Zimbabwe: Mugabe May Close 9,000 Foreign Firms

source: allAfrica
The Nation (Nairobi)
26 July 2010

Harare — Zimbabwe has threatened to close 9,000 foreign owned firms after they ignored a deadline to submit plans on how they intend to release some of their shareholding to locals.

President Robert Mugabe’s government wants the foreign owned companies with a value of over $500,000 to transfer 51 per cent of their shareholding to locals.

The tough regulations which were initially introduced in March were reviewed last month after causing a split in the unity government.

But despite the changes to the legislation that allow for exemptions to be made on companies who do considerable community service, the government has done little to re-assure sceptical investors.

The Zimbabwe Stock Exchange (ZSE), which was consistently among the top performing bourses in Africa at the height of the country’s economic problems has lost about US$1 billion in [continue reading]

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