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Last Trade - 31/03/16

Sector
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Size
Micro Cap
Market Cap £n/a
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Revenue £127.0m
Position in Universe th / 1832

Zimbabwe's Mugabe says empowerment law confusing investors

Tue 12th April, 2016 6:17pm
HARARE, April 12 (Reuters) - Zimbabwe's black empowerment 
policy that aims to tranfer majority shares from foreign-owned 
firms to locals is confusing potential investors and makes it 
hard to compete for foreign investment, President Robert Mugabe 
said on Tuesday. 
    The southern African nation passed an Indigenisation and 
Economic Empowerment Act in 2008, which forces foreign 
companies, including mines and banks, to transfer at least 51 
percent shares to black Zimbabweans. 
    But implementing the law has been steeped in controversy, 
with Mugabe's ministers often issuing conflicting statements on 
its implementation, further spooking foreign investors. 
    For example, the finance minister said on April 2 foreign 
banks in Zimbabwe had submitted credible plans to comply with 
the empowerment law, conflicting the youth and empowerment 
minister who had said banks had not complied.  urn:newsml:reuters.com:*:nL5N17505Y 
    "This has caused confusion among Zimbabweans, the business 
community, current and potential investors, thereby undermining 
market confidence," Mugabe said in a signed statement dated 
April 11. 
    Foreign investors point to the empowerment policy as the 
biggest impediment to investing in a country that holds the 
second largest deposits of platinum after South Africa. 
    Calling his statement a policy position, Mugabe repeated 
that the government would not negotiate on its stance to own 51 
percent in mining operations. 
    Existing mines could, however, comply with the policy by 
ensuring that 75 percent of the value they generated from local 
minerals would be retained in Zimbabwe. He did not explain. 
    This would apply to the world's top two platinum producers, 
Anglo American Platinum  AMSJ.J  and Impala Platinum  IMPJ.J , 
as well as Aquarius Platinum  AQP.AX , which mine in Zimbabwe. 
    To maintain stability and confidence, banks will continue to 
be regulated by the central bank, which has previously called 
for caution in implementing the empowerment drive, Mugabe said. 
    He said the black empowerment law should be amended or 
changed if it did "not sufficiently conform" with his directive. 
 
 (Reporting by MacDonald Dzirutwe; Editing by Mark Heinrich) 
 ((macdonald.dzirutwe@thomsonreuters.com; +263 4 799 112; 
Reuters Messaging: 
macdonald.dzirutwe.thomsonreuters.com@reuters.net)) 
 
Keywords: ZIMBABWE MUGABE/COMPANIES
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