AP

Zimbabwe's Prime Minister Morgan Tsvangirai.

Harare - The party of Zimbabwe's Prime Minister Morgan Tsvangirai is “totally opposed” to a new law giving local blacks majority shares in foreign companies and will launch its own project to lure foreign investment and create jobs, a report said on Monday.

“We are totally against this project being undertaken by (indigenisation minister Saviour) Kasukuwere and ZANU-PF,” the state-owned Herald newspaper quoted Tsvangirai as saying at rally in Marondera.

“There are people who are moving around saying: 'indigenisation, indigenisation.' How can you implement a party programme under the guise of the government?”

President Robert Mugabe's government gave foreign companies including banks and mines up to September 25 to submit plans to sell 51 percent of their shares to the black community by 2015 under the new indigenisation law.

Tsvangirai's MDC party would soon unveil its own initiative titled: “Jobs, Investment and Upliftment Programme”, according to spokesman Douglas Mwonzora.

“We cannot have a society where 90 percent of our children are not employed,” Tsvangirai continued.

“Our plan is of jobs and starts by encouraging investment. Our plan is not to take from Peter to pay Paul. We cannot have another situation like what happened with the land reform, taking away from a few whites and giving to a few blacks.”

Tsvangirai's statements came days after platinum miner Zimplats gave up 10 percent of its shares in a community trust to the local community in Selous.

An official in the indigenisation ministry said around 700 companies had missed the deadline, warning them to follow the law or risk deregistration.

But Zimbabwe has also struck individual deals with companies. Zimplats had extra time to submit its proposal and British insurer Old Mutual was allowed a “first phase” of compliance by handing over 25 percent of its shares.

Veteran President Robert Mugabe says the indigenisation law aims to fight poverty and put control of the economy in local hands, but the scheme has raised tensions within the shaky unity government with Prime Minister Morgan Tsvangirai.

Tsvangirai's party, which holds most economic portfolios in government, fears the law will scare off investors. - Sapa-AFP