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Zimbabwe Economy Minister Sees Revision of Laws Limiting Foreign Stakeholdings

Zimbabwe's Indigenization and Economic Empowerment Act, which came into force in March 2008, limits foreign stakeholdings in companies in the country to 49% while a 51% stake must be held by local investors

The Zimbabwean government will move to amend legislation barring foreign investors from holding a controlling stake in an enterprise in the country raising the allowable shareholding to as much as 100% in some sectors, Economic Planning Minister Elton Mangoma was reported as saying.

Mangoma told China's Xinhua news agency that Zimbabwe was open to foreign investment in all sectors of the economy. He said Zimbabwean investment laws will allow investors to maintain full control in some sectors.

The Indigenisation and Economic Empowerment Act which came into law in Zimbabwe in March 2008 limits foreign stakes to 49% while a 51% stake must be held by local investors (though the law does not appear to have been applied accross the board or even extensively). Mangoma could not be reached for confirmation of his reported comments and further details on the plan.

Employers Confederation of Zimbabwe Executive Director John Mufukare told VOA Studio 7 reporter Jonga Kandemiiri that the statement attributed to the planning minister was welcome, if it is carried into action.