HARARE (AFP) — Zimbabwe President Robert Mugabe, facing elections this month, has approved legislation ensuring the country's black population gets a majority stake in public-owned firms, a state newspaper reported Sunday.
"According to the (indigenisation and economic empowerment) law, indigenous Zimbabweans shall own at least 51 percent of the shares of every public company and other businesses," The Sunday Mail reported.
"It specifies that no restructuring, merger or demerger shall be approved unless indigenous Zimbabweans hold 51 percent shares in the resultant business."
New investment will not be approved unless a controlling stake is reserved for locals.
The law raised fears when it was mooted last year among foreign-owned companies operating in Zimbabwe that they will lose control of their firms.
Mugabe, who will stand for a sixth term March 29, says the indigenisation drive was designed to ensure economic independence for the majority of Zimbabweans who were discriminated by colonial laws.
Multinational firms that may be affected by the new policy include Barclays Bank, Bindura Nickel Corporation and mining giant Rio Zim.
According to the law, reportedly published in the gove
rnment gazette late Friday, the minister for indigenisation and empowerment will conduct a rating of every company to ensure compliance.
"The minister shall...have access to all public records relating to business shareholdings and controlling interests, notwithstanding anything to the contrary contained in any other law," reads part of the measure.
The law also provides for the establishment of an economic empowerment board to give loans to locals intending to acquire shares, start businesses or expand existing ventures.
Eight years ago, the government launched controversial land reforms which saw the state seizing at least 4,000 white-owned farms for redistribution to landless blacks.
Last year, Mugabe warned his government would seize and nationalise firms.
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