/ 23 June 2009

Zim PM sees local ownership level being cut

Zimbabwe is reviewing its indigenisation law and will likely lower the 51% requirement for local ownership of foreign firms investing in the country, Prime Minister Morgan Tsvangirai said on Tuesday.

”We are reviewing it,” he told a mining conference in London. ”Fifty-one percent is far, far too high.”

The new coalition government hopes to agree a new local ownership level that is ”comfortable” for investors, but still beneficial to the mineral-rich nation, he said.

Tsvangirai said he supported the concept of encouraging local businessmen, but the law also had to fair to overseas investors.

”There’s nothing wrong with indigenisation, for allowing local Zimbabweans … to participate in the economy of the country,” he said. ”What is wrong is to expect someone to bring money into the country and say we will take 51% of that.” — Reuters