Zimbabwe’s ‘100% control’ act under way

Published May 29, 2014

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Zimbabwe would demand 100 percent local control of its minerals and land under planned changes to its controversial empowerment law, Finance Minister Patrick Chinamasa said yesterday. His comments will add to confusion over policy in Zimbabwe, where the ruling Zanu-PF party has long tried to lift black ownership in the economy in a bid to right imbalances of the colonial era. The Indigenisation and Economic Empowerment Act, compelling foreign-owned companies to sell at least 51 percent shares to black people, was signed into law by President Robert Mugabe in 2008. Chinamasa told parliament that the cabinet had directed the minister of youth to amend the law. “Any investments, which come into the sectors affecting our resources, it is very important that they know that we have 100 percent control over these resources.” Chinamasa did not specify what he meant by “control” but in the past he has used the word interchangeably with ownership. It was unclear whether the new policy would affect existing investors such as Impala Platinum. – Reuters

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