Zimbabwe loosens controversial foreign-investor law

Zimbabwe Finance Minister Patrick Chinamasa, pictured at left with Afreximbank president Jean Ekra on March 22, 2014, announced substantial changes on December 24 2015 to a law forcing foreign companies to cede a majority stake to local investorsZimbabwe loosened Thursday the terms of a controversial law that forces foreign companies to cede a majority stake to local investors, signalling an attempt to shore up the country’s moribund economy. Finance Minister Patrick Chinamasa announced significant amendments to the law that had put a brake on foreign investment by delaying when foreign investors would have to sell off a majority of their holdings or even allowing them to escape that provision by paying a fee. The Indigenisation and Economic Empowerment Act of 2007 law was an initiative by President Robert Mugabe to benefit Zimbabwe’s majority black population disadvantaged by colonial rule.

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