Zimbabwe law targets foreign businesses

New legislation forces foreign companies to give a majority of shares to black Zimbabweans.


Zimbabwe is moving ahead with a new “indigenisation” law, known as the National Community Trust, which will force foreign companies to hand 51 per cent of shares to black Zimbabweans.

Impala Platinum, a South African-owned company, has already agreed to turn over a 10 per cent of its stake in its Zimbabwean Zimplats operation. In September the government threatened to take away the company’s licence to mine the world’s second largest platinum reserves.

More companies are expected to follow but some fear that the law is a plan to help strengthen President Robert Mugabe’s hold on the country ahead of possible elections in 2012.

Al Jazeera’s Haru Mutasa reports from Selous, Zimbabwe.

Source: Al Jazeera