Zimbabwe`s indiginisation policy hurts local business
source: SW Radio Africa
by Irene Madongo
11 September 2010
Zimbabwe’s economic policies, including the indiginisation law, are damaging local businesses who are failing to get finance from foreign investors.
The indiginisation law was passed this year and forces foreign-owned companies to cede more than half of their investment to locals. However, instead of helping locals, the law has merely put off potential investors.
In August Zimglass in Gweru, the country’s only glass manufacturer, had to shut down after struggling with power cuts which affected the running of their electric furnaces. The country’s damaging electricity cuts have forced the company to try to raise $18 million, for an alternative form of energy. But finding new sources of funds is extremely difficult at a time when foreign investors are concerned about investing in the country.
On Tuesday, economic analyst Masimba Kuchera used the case of Zimglass as an example. He said that potential foreign investors, like any investor, wants to [continue reading]