Not all foreign companies in Zimbabwe will be forced to give 51 per cent of their shares to locals, a Government Minister has claimed.

Paul Mangwana, Minister for Indigenisation and empowerment, said that the new laws imposed by Robert Mugabe will not apply to every firm in the country.

"It's not every business which will have to have 51 per cent indigenous ownership. The minister will prescribe on the basis of capital (investment) and employment levels," he said.

But the comments have failed to calm fears because the law still exists.

"A different explanation, outside the law, cannot allay fears. The most important thing is the form and content of the Act. A separate explanation by word of mouth cannot bring any comfort," said Jack Murehwa, Head of Zimbabwe's Mining Chamber.

But Mr Mangwana said companies will not be forced into partnerships.

"Only when an investor fails to identify a suitable partner will government step in because we will have a databank of potential investors," he explained.

Source:

Zimbabwe says not all foreign firms to sell stakes, 11/03/08
http://uk.reuters.com/article/marketsNewsUS/idUKL1124378220080311?pageNumber=1

Minister defends Zimbabwe bill, 12/03/08
http://www.ft.com/cms/s/0/41a8f99c-efd9-11dc-8a17-0000779fd2ac.html

Anglo Platinum to stay in Zimbabwe, 11/03/08
http://www.platinum.matthey.com/media_room/1205240453.html

Mugabe's Economic Empowerment Bill gets approval, 10/03/08
http://www.platinum.matthey.com/media_room/1205154024.html


Ÿ Adfero Ltd