Zimbabwe cracks down on foreign firms over local ownership

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http://www.dw.com/en/zimbabwe-cracks-down-on-foreign-firms-over-local-ownership/a-19137023

Zimbabwe has given foreign firms just over a week to cede majority stakes to locals or face closure. Critics say the move will discourage foreign investment in an economy which is struggling.

Zimbabwe cracks down on foreign firms over local ownership
23.03.2016
Mark Caldwell

Zimbabwe has said it will cancel licenses of foreign firms which have not complied with legislation forcing them to hand over majority stakes to local shareholders.

The government adopted thet legislation in 2008 to compel foreign firms to cede at least 51 percent to promote black ownership and correct imbalances from the colonial era. However, this law is often not adhered to.

This latest move to implement the Indigenisation and Economic Empowerment Act was announced on Wednesday (23.03.2016) by Empowerment Minister Patrick Zhuwao.

Some companies have "continued to disregard" the law prompting the government's order to close non-compliant firms, Zhuwao said.