Zimbabwe gives banks one year to cede stakes to blacks
Zimbabwe’s leaders have given a year’s ultimatum to foreign-owned
banks and other firms to cede a 51 percent stake to local black people
in compliance with empowerment laws, a government notice said.
A notice in the government gazette, dating from Friday but made
public on Tuesday, gave one year as a “maximum period a business may
continue to operate before it attains the minimum indigenisation and
empowerment quota.” Zimbabwe enacted in 2007 a law that compels all
foreign-owned companies to hand over a majority stake of 51 percent to
local blacks.
The law has led mining firms including the country’s biggest platinum
mine Zimplats, which is a subsidiary of South Africa’s Impala, to submit
their schedules to cede majority shares to locals.
The latest notice has widened the targeted sectors to include banks,
hotels, education institutions and telecommunications firms.
Britain’s Standard Chartered Bank and Barclays Bank are among the
major foreign banks with operations in this former British colony. Last
year, Indigenisation Minister Saviour Kasukuwere said foreign banks had
shown “disrespect” of the laws by failing to comply. But Finance
Minister Tendai Biti and central bank governor Gideon Gono are opposed
to the laws affecting banks, saying the move would hurt the economy.
President Robert Mugabe, who spearheaded the seizures of white-owned
land in 2000, a policy that severely hurt the once vibrant agricultural
sector, has threatened to take over foreign firms if they fail to meet
the regulations.
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