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.

zimbabwe_L_111002_1815954573
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?


Share
1 min read

Published

Updated

Source: CNN

Tags

Share this with family and friends


Get SBS News daily and direct to your Inbox

Sign up now for the latest news from Australia and around the world direct to your inbox.

By subscribing, you agree to SBS’s terms of service and privacy policy including receiving email updates from SBS.

Download our apps
SBS News
SBS Audio
SBS On Demand

Listen to our podcasts
An overview of the day's top stories from SBS News
Interviews and feature reports from SBS News
Your daily ten minute finance and business news wrap with SBS Finance Editor Ricardo Gonçalves.
A daily five minute news wrap for English learners and people with disability
Get the latest with our News podcasts on your favourite podcast apps.

Watch on SBS
SBS World News

SBS World News

Take a global view with Australia's most comprehensive world news service
Watch the latest news videos from Australia and across the world