Accessibility links

German Business Organization Cancels Zimbabwe Trip Over Indigenization Moves

  • Jonga Kandemiiri
  • Gibbs Dube

The German African Business Association, which represents some 600 German companies doing business in Africa, said the indigenization legislation now being implemented has made Zimbabwe a no-go area for international investors

A German business delegation has called off a planned trip to Zimbabwe next month to attend the International Trade Fair in Bulawayo, citing concern over the nation's move to shift control of companies to blacks.

The German African Business Association, which represents some 600 German companies doing business in Africa, said the indigenization legislation now being implemented has made Zimbabwe a no-go area for international investors.

The German group's decision follows word last week that Norway was suspending a US$1.5 million program to boost agriculture, also over indigenization.

From Hamburg, Germany, Business Association Regional Director for Southern Africa Andreas Wenzel told VOA Studio 7 reporter Jonga Kandemiiri that the visit might be rescheduled later this year depending on the outcome of talks within the Harare government.

Despite such expressions of concern about the move to give local blacks a 51 percent stake in all firms worth more than US$500,000, prices on the Zimbabwe Stock Exchange have rebounded from mid-March lows after engagements between government and business as to revising some of the more controversial regulations for the implementation of indigenization.

The Zimbabwe Stock Market Index ended trading on Tuesday at 142 points, up almost 11 percent from its March 18 low of 129 points. The high point for 2010 to date was 167 points in mid-January.

Stockbroker Tinashe Shumba said investors are a bit more optimistic about the business outlook as more is known about he indigenization program.

Show comments

XS
SM
MD
LG