Monday, November 19, 2007

Zimbabwe finds one last industry to screw up.

Africa: I thought at this points they had screwed everything up, but I was wrong.

Zimbabwe's government has published new legislation that would force mining firms to transfer a majority shareholding to local owners.

That will include giving the government a free 25% stake.

The legislation is expected to be presented before parliament before the end of the year.

Economists warn that if the mines and minerals amendment bill is passed, it will halt any new investment in Zimbabwe's mining industry.

Ever since the government in Harare passed legislation earlier this year, forcing foreign-owned companies to sell a majority share to Zimbabweans, the mining industry knew it would have eventually have to comply.

But what has alarmed industry insiders is a provision in the draft law that says 25% of the shares must be given to the government for free.

No comments:

Post a Comment