Zimbabwe is planning to tone down on the controversial equity law which forces foreign companies to cede a majority shareholding to local investors. Information minister Jonathan Moyo said that the government was reviewing and tightening the indigenization and empowerment policy by being pragmatic without being dogmatic about it. He is quoted in local media saying that investors would be allowed to recover their initial capital investment, an appropriate return on investment and operational costs before sharing of production outputs or profits. Zimbabwes controversial 2007 indigenisation law states that foreign firms must hand a 51 percent shareholding to local partners. Under the law, foreign owners of Zimbabwe mines were given an ultimatum to surrender more than 50 percent of their shares and find local partners or risk nationalisation.
Posted on: Mon, 26 May 2014 12:10:04 +0000
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