Robert Mugabe has approved a law forcing companies to give up 51 per cent of their equity to locals.

The Indigenisation and Economic Empowerment Bill became law on Friday after a Government newspaper reported that a notice had been published in the Government Gazette.

"President Mugabe has assented to the Indigenisation and Economic Empowerment Bill, paving the way for the indigenisation of Zimbabwe's economy and the economic empowerment of the country's indigenous citizens," the notice that appeared in the Sunday Mail read.

"Indigenous Zimbabweans shall own at least 51 per cent of the shares of every public company and other businesses.

"It specifies that no restructuring, merger or demerger shall be approved unless indigenous Zimbabweans hold 51 percent shares in the resultant business," the statement continued.

The bill will affect Impala Holdings and Aquarius Platinum which both have platinum mines in the country.

President Mugabe has blamed the country's economic problems on 'white-owned mining companies' and accused them of smuggling precious minerals out of the country, Mineweb reports.

Source:

Zimbabwe approves law indigenising foreign-owned companies, 09/03/08

http://www.mineweb.com/mineweb/view/mineweb/en/page67?oid=49064&sn=Detail



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