Zimbabwe’s President Robert Mugabe has approved legislation giving local owners the right to take a majority share of foreign companies, writes The World Bank Press Review.
Mugabe’s formal approval of the Indigenization and Economic Empowerment Bill comes three weeks ahead of his country’s presidential elections.
Under the legislation, every company must have at least 51 percent of their shares owned by black Zimbabweans.
If not, the government will block new investment, mergers or restructuring.
The new law means some of the country’s biggest businesses – such as the mining giant, Rio Tinto, and Barclays Bank – will have to find local partners.
Kilde: www.worldbank.org
