http://news.bbc.co.uk/2/hi/business/6238146.stm
Zimbabwe proposes black-run firms
President Robert Mugabe's government has published a bill to move majority control of "public companies and any other business" to black Zimbabweans.
The goal is to ensure at least a 51% shareholding by indigenous black people in the majority of businesses.
Critics say it could hurt investor confidence in Zimbabwe, suffering from the world's highest inflation and food, fuel and foreign currency shortages.
Now the Indigenisation and Economic Empowerment Bill will go to parliament.
'Financing of acquisitions'
It is expected to back the bill, which stipulates that no company restructuring, merger or acquisition can be approved unless 51% of the firm goes to indigenous Zimbabweans.
The empowerment bill says that "indigenous Zimbabwean" is anyone disadvantaged by unfair discrimination on race grounds before independence in 1980.
It also provides for the establishment of an empowerment fund which will offer assistance to the "financing of share acquisitions" from the public-owned firms or assist in "management buy-ins and buy-outs."
And all government departments and statutory bodies will be asked to obtain 51% of their goods and services from businesses in which controlling interest is held by indigenous Zimbabweans. Read full: http://news.bbc.co.uk/2/hi/business/6238146.stm
Zimbabwe proposes black-run firms
President Robert Mugabe's government has published a bill to move majority control of "public companies and any other business" to black Zimbabweans.
The goal is to ensure at least a 51% shareholding by indigenous black people in the majority of businesses.
Critics say it could hurt investor confidence in Zimbabwe, suffering from the world's highest inflation and food, fuel and foreign currency shortages.
Now the Indigenisation and Economic Empowerment Bill will go to parliament.
'Financing of acquisitions'
It is expected to back the bill, which stipulates that no company restructuring, merger or acquisition can be approved unless 51% of the firm goes to indigenous Zimbabweans.
The empowerment bill says that "indigenous Zimbabwean" is anyone disadvantaged by unfair discrimination on race grounds before independence in 1980.
It also provides for the establishment of an empowerment fund which will offer assistance to the "financing of share acquisitions" from the public-owned firms or assist in "management buy-ins and buy-outs."
And all government departments and statutory bodies will be asked to obtain 51% of their goods and services from businesses in which controlling interest is held by indigenous Zimbabweans. Read full: http://news.bbc.co.uk/2/hi/business/6238146.stm
