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Zimbabwe deadline for firms to be black-owned passes | Zimbabwe deadline for firms to be black-owned passes |
(3 days later) | |
A Zimbabwe deadline for all firms to transfer most of their shares to black Zimbabweans has passed, but it is not clear how many have complied. | A Zimbabwe deadline for all firms to transfer most of their shares to black Zimbabweans has passed, but it is not clear how many have complied. |
The government had said that companies should meet the requirements of a 2008 indigenisation law by the end of March. | The government had said that companies should meet the requirements of a 2008 indigenisation law by the end of March. |
Theoretically, non-compliance could lead to a company losing its license. | Theoretically, non-compliance could lead to a company losing its license. |
This was a key part of Robert Mugabe's 2013 election campaign - on the basis that black people were discriminated against during the colonial era. | This was a key part of Robert Mugabe's 2013 election campaign - on the basis that black people were discriminated against during the colonial era. |
But it has proved controversial, with detractors saying that it could discourage much-needed foreign direct investment. | But it has proved controversial, with detractors saying that it could discourage much-needed foreign direct investment. |
The Reuters news agency quotes the minister responsible, Patrick Zhuwao, as saying that most of the country's foreign-owned banks and mining companies have not submitted their indigenisation plans, adding that he thought they would do soon. | The Reuters news agency quotes the minister responsible, Patrick Zhuwao, as saying that most of the country's foreign-owned banks and mining companies have not submitted their indigenisation plans, adding that he thought they would do soon. |
But Mr Zhuwao told the BBC's Focus on Africa programme that his ministry was currently "going through submissions made by companies [and] we don't have statistics yet" on who has complied. | But Mr Zhuwao told the BBC's Focus on Africa programme that his ministry was currently "going through submissions made by companies [and] we don't have statistics yet" on who has complied. |
He dismissed concerns that the measures would scare off foreign investors. | He dismissed concerns that the measures would scare off foreign investors. |
"Those statements come from voodoo economists," he said, "and these statements are really very far removed from reality." | "Those statements come from voodoo economists," he said, "and these statements are really very far removed from reality." |
He added that the "law is attempting to negate the imbalances that were created by racism as a result of our colonial history". | He added that the "law is attempting to negate the imbalances that were created by racism as a result of our colonial history". |
Standard Chartered and Barclays are among the banks operating in the country, and Zimbabwe also hosts the mining firms Anglo American Platinum and Impala Platinum. | Standard Chartered and Barclays are among the banks operating in the country, and Zimbabwe also hosts the mining firms Anglo American Platinum and Impala Platinum. |
BBC Africa Business Report editor Matthew Davies says that an attempt to implement the law two years ago was largely ignored, but this time the government is promising action. | BBC Africa Business Report editor Matthew Davies says that an attempt to implement the law two years ago was largely ignored, but this time the government is promising action. |
The indigenisation plan for businesses echoes the country's land reform programme that started in 2000. | The indigenisation plan for businesses echoes the country's land reform programme that started in 2000. |
At that time, the process of transferring around 4,500 farms held by white commercial farmers distributed to nearly 170,000 black Zimbabwean families began. | At that time, the process of transferring around 4,500 farms held by white commercial farmers distributed to nearly 170,000 black Zimbabwean families began. |
This has been widely blamed for causing Zimbabwe's economic collapse, but a 2010 study by the UK's Institute of Development Studies found that the programme had had some positive effects, and that the idea that it was a complete failure was a myth. | |
Zimbabwe is currently coping with the impacts of a severe drought. | Zimbabwe is currently coping with the impacts of a severe drought. |