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Zimbabwe PM Tsvangirai Faces Uphill Battle Over Foreign Stakes - Analysts

  • Jonga Kandemiiri

Though Zimbabwe Prime Minister Morgan Tsvangirai's told investors in London this week that foreigners should be allowed to hold majority stakes in mining enterprises, some observers question whether President Robert Mugabe is likely to accept this reform.

The Indigenization and Economic Empowerment Act signed into law 15 months ago by Mr. Mugabe says Zimbabweans may assume 51% stakes in foreign-owned companies. Although the law does not specify which companies are subject to such a transfer of ownership, the legislation was aimed in particular at the country's mining sector.

Economist Prosper Chitambara of the Labor and Economic Development Research Institute told reporter Sandra Nyaira of VOA's Studio 7 for Zimbabwe he does not think Mr. Mugabe and his ZANU-PF party will agree to repealing or revising the act whatever the potential benefits in terms of increased foreign direct investment in the sector.

Elsewhere, Economic Planning Minister Elton Mangoma told investors in London that Harare has no plans to re-introduce the Zimbabwe dollar and will continue with the current monetary regimen of hard currencies such as the U.S dollar, aiming to bolster investor confidence.

Economist Callisto Jokonya told VOA reporter Jonga Kandemiiri he supports the continued circulation of the U.S dollar, the South African rand and other hard currencies.

More reports from VOA's Studio 7 for Zimbabwe...

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