Zimbabwe

Zim cabinet orders changes to black empowerment law

2014-05-29 15:58

(Shutterstock)

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

Special Report

Mugabe takes a swipe at Zanu-PF officials over Grace
Mugabe takes a swipe at Zanu-PF officials over Grace

Zimbabwean President Robert Mugabe has reportedly taken a swipe at some Zanu-PF party officials, accusing them of attempting to bar his wife, Grace from entering into mainstream politics.

Harare - Zimbabwe's cabinet has ordered that a controversial equity law which forces foreign companies to cede a majority shareholding to local investors be amended, a minister said on Thursday.

"Cabinet has said the law should be aligned with the constitution and we will soon be making the necessary adjustments," Indigenisation Minister Francis Nhema told AFP.

The controversial 2007 indigenisation law orders that foreign firms hand a 51% shareholding to local partners.

Finance Minister Patrick Chinamasa on Wednesday told parliament that cabinet had decided that the law be changed to make it clearer and friendlier to investors.

"We want a win-win situation. We are aware that investors don't come here for charity. They come to make money," Chinamasa said.

"Where investors come with their money equipment, we have never said we want a share of that money."

In its original form, the law spooked investors amid a weakening economy and high unemployment levels.

Source of conflict

The indigenisation law has also been a source of conflict between President Robert Mugabe's allies, with some maintaining a hardline stance while others opposed the measures.

Information Minister Jonathan Moyo earlier divulged some details of the planned changes to the indigenisation and empowerment policy.

One of the aspects of the law is that it will allow foreign investors to recover their initial capital investment, a return on investment and operational costs before sharing profits, said Moyo.

Under the law, foreign owners of mines in Zimbabwe were given an ultimatum to surrender more than 50 percent of their shares and find local partners or risk nationalisation.

Mugabe said that the law, which followed controversial land reforms launched two-and-half decades ago, was meant to reverse imbalances which resulted from colonialism.

But critics including opposition leader Morgan Tsvangirai have been adamant that the law would enrich Mugabe's allies and scare away foreign investors.

A new constitution came into effect in March.

- AFP

Read more on:    robert mugabe  |  patrick chinamasa  |  jonathan moyo  |  morgan tsvangirai  |  zimbabwe  |  southern africa
NEXT ON NEWS24X

SHARE:

Read News24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
25 comments
Add your comment
Comment 0 characters remaining
 

Inside News24

 
/News

Jobs in Cape Town [change area]

Property [change area]

Travel - Look, Book, Go!

Magical Massinga

Spend 5 nights at the gorgeous Massinga Beach Lodge in Mozambique and only pay for 4 from R13 220 per person sharing. Includes return flights, accommodation, transfers and romantic turndown. Book now!

Kalahari.com - shop online today

Camping gear!

We’ve got all your camping must have’s right here at mind blowing low prices. Check them out now!

Herbex – buy 3 & get 1 free!

Fat burn packs, appetite control chewies, stretch mark cream and more. Offer valid while stocks last. Shop now.

30% off Jinger Jack handbags

Spice up your wardrobe and save 30% on stylish Jinger Jack handbags. Offer valid while stocks last. Shop now!

Buy 3 books & pay for 2

The cheapest of the 3 books will be free. Offer valid while stocks last. T&Cs apply. Shop now!

Deal of the week!

Hisense 40” Full HD LED Television now R3999. Offer valid while stocks last. Buy now!

OLX Free Classifieds [change area]

Samsung Galaxy s4

Mobile, Cell Phones in South Africa, Western Cape, Cape Town. Date October 24

Best bargain in big bay

Real Estate, Houses - Apartments for Sale in South Africa, Western Cape, Cape Town. Date October 25

VW Golf 6, 1.6 Trendline (Excellent condition)

Vehicles, Cars in South Africa, Western Cape, Cape Town. Date October 25

Horoscopes
Aquarius
Aquarius

Mercury has moved into Libra which adds a more social energy to the way you can communicate and connect things. Today is about...read more

There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.








Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.