Zimbabwe revives bill to force local owners on foreign firms

AFP

HARARE: Zimbabwean has revived a controversial bill which would require that locals own a 51 percent stake in all foreign firms operating in the country, according to a document obtained by AFP.

The Indigenisation and Economic Empowerment Act would give companies 60 days to hand over the ownership, if the measure wins approval by parliament and is signed by President Robert Mugabe, according to a copy of the proposed law.

The takeovers would target companies valued at 500,000 dollars (336,000 euros) or above, according to the document.

Any business that fails to meet the deadline could submit proposals "on how it intends to achieve compliance", said the document.

The new measure has not yet come before parliament. A similar law was approved in 2007, but never signed into law by Mugabe.

Parliament is now controlled by the Movement for Democratic Change (MDC) of Prime Minister Morgan Tsvangirai, the former opposition leader, and it was not clear if the measure could achieve enough votes to pass.

Since the formation of the unity government early this year between Mugabe and Tsvangirai, Zimbabwe has been wooing investors into the country.

The revival of the bill could spook jittery foreign investors still nervous about Zimbabwe after a decade of economic collapse.

Foreign companies that could be affected by the measure include mining companies, retailers and tourism firms.