Zimbabwe passes law to give locals lion's share in firms: report

0 Comments | AFP, March, 2008

HARARE (AFP) — Zimbabwe President Robert Mugabe, facing elections this month, has approved legislation ensuring the country's black population gets a majority stake in public-owned firms, a state newspaper reported Sunday.

"According to the (indigenisation and economic empowerment) law, indigenous Zimbabweans shall own at least 51 percent of the shares of every public company and other businesses," The Sunday Mail reported.

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

New investment will not be approved unless a controlling stake is reserved for locals.

The law raised fears when it was mooted last year among foreign-owned companies operating...