Bloomberg News

Zimbabwe’s Ownership Law Erodes Confidence, Tsvangirai Says

September 28, 2011

(Updates with comment by Tsvangirai in second paragraph.)

Sept. 28 (Bloomberg) -- Zimbabwean Prime Minister Morgan Tsvangirai said the country’s “warped” policy of forcing companies to sell majority stakes to blacks eroded confidence and delayed investments.

“The matter of indigenization has caused discord within government,” Tsvangirai told reporters today in Harare, the capital. “The principle itself, the implementation and the legal framework is a matter of conflict.”

Investors are also worried about uncertainty over when elections will be held in the southern African nation, he said.

Zimbabwe, which has the world’s second-biggest reserves of platinum and chrome after neighboring South Africa, wants all foreign and white-owned companies to submit plans to sell 51 percent stakes in local assets to black Zimbabweans.

Tsvangirai is leader of the Movement for Democratic Change that is in a power-sharing government with President Robert Mugabe’s Zimbabwe African National Union-Patriotic Front party.

--Editors: Dulue Mbachu, Karl Maier

To contact the reporter on this story: Godfrey Marawanyika in Johannesburg at gmarawanyika@bloomberg.net

To contact the editor responsible for this story: Gordon Bell at gbell16@bloomberg.net


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