President Emmerson Mnangagwa has defended the scrapping of the 51-49 percent local/foreign ownership requirement among foreign owned firms operating in Zimbabwe.
Speaking during a state media interview to mark 39 years of independence this past week, president said:
By removing the concept of 51 percent or 10 percent in the extraction of minerals, we have not abandoned the concept of creating an environment where our people will be able to interface as well as enter the mainstream of the economy.
The Indigenisation and Economic Empowerment Act that was introduced by former President Robert Mugabe has been identified as one of the issues affecting foreign direct investment. He indicated investors may have to incoporate the local people. He continued:
…We realise its critically important that our people should continue participating in their own economy. Those with their capital should not be forced to participate in an environment where they are forced to surrender without remuneration in the country.
They should bring on board our people and this is negotiable. That is what happens worldwide.
Investors have been fleeing from Zimbabwe in the past citing policy incosistency.
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