White Zim business owners must pass 51% share to black partners

antowan

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Feb. 9 (Bloomberg) -- Zimbabwe passed a law that compels all businesses with assets worth more than $500,000 to be 51 percent black-owned within five years, according to a copy of the law distributed by Harare-based Veritas Trust.

The law was published in the Government Gazette, a public document. It comes into effect March 1 and stipulates prison sentences of up to five years for non-compliance. Veritas is a Harare-based non-governmental organization that monitors the passage of laws through parliament and their publication.

The new law may affect companies including Anglo Platinum Ltd., Impala Platinum Holdings Ltd. and Aquarius Platinum Ltd., three of the world’s four biggest producers of the metal, which all own mines in the southern African nation. Old Mutual Plc, Africa’s biggest insurer, owns properties and a life-insurance operation in the country.

“The news is very grim,” John Robertson, a Harare-based economist, said in a phone interview today from the capital. “It will effectively put a halt to any further investment in Zimbabwe, ironically just as the country is calling for investment.”

Zimbabwe has the world’s second-largest reserves of platinum and chrome, after South Africa, along with deposits of gold, coal, diamonds and nickel. The economy is recovering from a decade of recession that followed Zimbabwean President Robert Mugabe’s seizure of white-owned commercial farms to redistribute to black subsistence farmers deprived of land during colonial rule. The program slashed exports.

Disposal Plans

The new law states that “every existing business” must submit forms detailing ownership of companies by April 15, along with plans for the disposal of 51 percent of their shareholdings to black Zimbabweans.

Businesses that fail to comply after a 30-day reminder will be guilty of an offense and liable to a fine and or a jail sentence of as much as five years, according to the gazette.

Spokesmen from Mugabe’s Zimbabwe African National Union- Patriotic Front, which pushed the bill through parliament, didn’t answer calls to their offices or mobile phones today. Mugabe’s spokesman, George Charamba, didn’t answer calls to his office either.

The law, known as the Indigenization and Empowerment Act, was passed by parliament in 2008 without being signed into law by Mugabe. Zanu-PF controlled parliament from 1980 until March 2009, when it lost elections to the MDC.

Old Mutual’s London-based spokesman Matthew Gregorowski couldn’t immediately comment when contacted on his mobile phone today.

http://www.businessweek.com/news/20...asses-law-on-51-black-ownership-update1-.html
 

MrHands

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And, like the farmers, those businesses will continue to operate as usual and just hope for the best. I'm sure they are thinking "this is crazy, the government would never do anything so self-destructive to the economy!". They will continue to ignore the writing on the wall until a few hundred 20-year old "war vets" comes and takes over the entire company. Once taken over, it will be not be ran as a going concern, but it will just promptly be looted. After the company promptly fails, the blame will be put squarley on the western sanctions placed on the selective Zanu-PF members.
 

I am Penguin

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zWelcome to Africa where the indigenous can only achieve or acquire anything if it is looted or donated for free. Thats the only way Africa and the inhabitants can survive!
 

MrHands

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zWelcome to Africa where the indigenous can only achieve or acquire anything if it is looted or donated for free. Thats the only way Africa and the inhabitants can survive!

The problem is that the looting isn't sustainable. But thanks to the West the live-on-donations way of life is sustainable
 

Slootvreter

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zWelcome to Africa where the indigenous can only achieve or acquire anything if it is looted or donated for free. Thats the only way Africa and the inhabitants can survive!

Correct. Makes be think back of David Bullard's article that got him fired. :whistling:
 

I am Penguin

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So sad So true!

he trouble with David's Article is, it speaks inconvenient truth. It speak inconvenient home truths. It speaks of how it really was, is and will be, for the forceable future, on that great & mighty continent of Africa. And, before you shout the over used 'R' word, I've spent most of my life living there, working there and fighting in a few of it's wars. I've seen Africa and Africans, whether they are Black or White (yes there are millions of White Africans)from every perspective & possible point of view. I comment from the point of view, the eye witness benefits from. Africa today, is in many parts, not a pretty site. African on African violence, Black on Black violence. Almost unbelievable, sickening but very true and still happening right now. The AU & UN unable, or unwilling to put an end to war, corruption, ethnic cleansing, mass rape, wholesale slaughter of defenceless and innocent Black Africans? One can only ask why? The Darfur, the DRC, Somalia, Sierra Leone, Ruwanda, Liberia and Zimbabwe to name but a few of Africa's choicest examples of Africa, shooting itself in the foot. Africa is at times, its own worst enemy. Historically, White violence & opression on Black Africans , was condemmed and rooted out at every turn. No stone was left undisturbed, and often quite rightly so! But, in the 21st Century, Black African violence, on Black Africans is strangely tolerated?! Namely by fellow Black Africans, who tut, tut, slap backs, wave fingers, but ultimately do little & nothing to solve Africa's problems. Crime, poverty, joblessness, famine, war, revolution and a population spiraling out of all control. David Bullard is a privelidged white man, who spoke a few painfull home truths, and paid the price for pointing out what we already know. Until Africans, are able to deal with each other, in a more tolerant and understanding way, none of Africa's problems will ever be resolved. Not in this life time. Thabo Mbeki speaks airily from time to time, about an "African Renaissance?" My questions are: How?, where? & when? But, if his handling of the Zimbabwean shambles is anything to go by, I have all the answers I really need.
I have travelled very widely through Africa. Not as a spoilt tourist, staying in 5 star hotels, but on the ground, taking my time, to meet with & at times enjoy the company and views of fellow Africans. Ordinary working people, who have in most cases been badly abused, shamefully let down and exploited by fellow Black Africans, who only cherry pick the parts from African history they can handle or debate. Usually this only involves their own very narrow & convenient points of view. They have in many cases, been in political power for decades, but like the ruling, disinterested ruling elite they really are, ignore the people they grind down, keep poor, without the neccessary basics of life: The respect for law & order, jobs, health & education, clean water, food, freedom of speech & thought, whether written or spoken. No, African's ruling political elite, are far too busy enjoying life. Life for them, the very few, is good. Better than good. Life for the majority of ordinary Africans, is bad. Worse, far worse than bad. And this is not the fault, of any White Africans, who came, whether 300 years ago, or a few decades & years ago. The blame game, many Africans enjoy playing no longer works. The Racism card, is all dog eared & bent out of shape. The continent of Africa, can succeed and go forward, for most of its people. But, this is a very big - 'If, why & when' Africans - of all races, colours and creeds, living in relative peace, working on solutions for everyone, who is proud to call themselve's 'an African' An ridding the continent of the crazy mess it is largely in today
 

arni1954

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11 -2- 2024

White South African business owners must pass 51% share to black partners
 

MrHands

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11 -2- 2024

White South African business owners must pass 51% share to black partners

What I don't understand is why they must take over EXISTING companies. Why not just let nature take it's course and new companies will be formed that are black owned?

Why focus on Old Mutual when they could start up New Mutual?
 

I am Penguin

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What I don't understand is why they must take over EXISTING companies. Why not just let nature take it's course and new companies will be formed that are black owned?

Why focus on Old Mutual when they could start up New Mutual?

There is the crux, they cannot do it without help or confiscation. That's the whole African dilemma and eternal curse!
 

MrHands

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There is the crux, they cannot do it without help or confiscation. That's the whole African dilemma and eternal curse!

If they must go down that route they should at least iron out all the wrinkles caused by the farm takeover. If you are gonna take something over you gotta learn to do it right the first time!
 

Flanders

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Maybe Robber hasn't been feeling all that healthy lately and he's just making sure he gets the job done properly once and for all before he [-]buys[/-] takes the farm. :p

Really, I thought the final nail was already in Zim's coffin but it turns out there's one more.
 

samuelp

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Are we compliants if we marry a black female and pass 51% share to her ?
 

Albereth

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Sounds like a business plan.

Open business
Take out huge loan
Give 51% to local partner
Skip town with money leaving local partner as majority shareholder to explain.
 

genetic

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Why whenever there is a thread on Zimbabwe, it ends up becoming a thread on SA becoming Zim2.0...??

Oh I forgot.. It's the MyBB way..
 

Moederloos

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Why whenever there is a thread on Zimbabwe, it ends up becoming a thread on SA becoming Zim2.0...??

Oh I forgot.. It's the MyBB way..

Maybe because all those people that helped turn Zim into what it is today, are now living in SA?
 
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