Finance Minister Mthuli Ncube said foreign investors could now take majority stakes in the platinum and diamond sectors. File Photo: IOL

INTERNATIONAL – Zimbabwe will repeal its indigenisation and economic empowerment legislation dealing with ownership of foreign-controlled companies and replace it with a new empowerment law, Finance Minister Mthuli Ncube said on Thursday. 

Addressing parliament, Ncube also said foreign investors could now take majority stakes in the platinum and diamond sectors. 

The empowerment law adopted in 2008 under Robert Mugabe forced foreign-owned businesses, including mines, to cede at least 51 percent of the shares of their local operations to black Zimbabweans. 

In a bid to attract investment, President Emmerson Mnangagwa last year removed these requirements for other minerals except diamonds and platinum, which his government said were strategically important. 

Mthuli Ncube also said yesterday that Zimbabwe’s economy was expected to contract this year due to a drought and severe power cuts, without providing a figure. 

The country had initially forecast the economy to grow 3.1 percent in 2019. 

Ncube also said Zimbabwe would defer publication of year-on-year inflation until February 2020 following the adoption of a new currency in June. 

Prices of basic goods and services have more than doubled since June, piling pressure on citizens struggling with shortages. 

Reuters