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Zimbabwe pressures foreign companies

A law has taken effect in Zimbabwe aimed at forcing foreign-owned companies to transfer a majority stake in their businesses to black Zimbabweans.

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1 min read

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Updated

Source: CNN


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A law has taken effect in Zimbabwe aimed at forcing foreign-owned companies to transfer a majority stake in their businesses to black Zimbabweans.

The heavily-criticised law is aimed mainly at mining firms and banks.

In 2000, it was white owned farms that were taken by force. The move was meant to benefit landless blacks, instead Zimbabwe plunged into a crisis that crippled the economy.

Now the government is forcing foreign owned companies to transfer majority shares to locals in yet another empowerment drive, and is threatening to revoke licenses and even seize assets if they don't comply.

Will a law that was designed to empower ordinary Zimbabweans end up having the opposite effect?


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