Zimbabwe is changing its investment rules for foreigners. The government plans to update the Indigenisation and Economic Empowerment Act, which limits the 51-49 percent requirement to natural resources only. Foreign investors can have 49 percent shares in natural resource businesses.
The policy came from former President Robert Mugabe's statement on April 11, 2016. It cleared up confusion about the empowerment law. Presidential spokesperson George Charamba told The Herald that President Emmerson Mnangagwa ordered quick changes. Mnangagwa stressed that these changes must happen fast.
Charamba explained that the law created problems for everyone involved. It promised help for local people without delivering results, and it scared away potential investors from other countries. The policy was clear from the leadership, but it never became actual law. President Mnangagwa fixed this by telling his Chief Secretary to change the law right away. The government will soon show a new framework for investments that makes things clear for everyone.
The policy also wants to include Zimbabweans who live in other countries. President Mnangagwa sees their value in four ways. First, they have the skills needed for economic recovery. Second, they might have saved money that could help when combined. Third, they may have partners with resources who might invest in Zimbabwe. Fourth, they can tell others that Zimbabwe welcomes investment.
Former President Mugabe explained that the law works differently for three sectors. The natural resource sector deals with things like minerals. The government thinks this sector matters most because these resources run out over time. The country must protect these resources for current and future generations. In this sector, the government keeps 51 percent control, with investors getting 49 percent.
The non-resource sector focuses on adding value to raw materials and bringing new technology to Zimbabwe to make work more productive. This helps create jobs and teaches Zimbabweans new skills. This sector allows different arrangements between foreign investors and local partners. It encourages programs that connect businesses, develop enterprises, create value chains, and meet other goals that attract foreign investment.
The reserved sector stays mostly for Zimbabwean business owners, except for businesses already running. Some businesses might get special permission from the right minister. These businesses include stores, transportation services like buses and taxis, property agencies, grain processing, bakeries, tobacco processing, advertising agencies, cleaning services, job agencies, and local arts and crafts businesses.
The policy came from former President Robert Mugabe's statement on April 11, 2016. It cleared up confusion about the empowerment law. Presidential spokesperson George Charamba told The Herald that President Emmerson Mnangagwa ordered quick changes. Mnangagwa stressed that these changes must happen fast.
Charamba explained that the law created problems for everyone involved. It promised help for local people without delivering results, and it scared away potential investors from other countries. The policy was clear from the leadership, but it never became actual law. President Mnangagwa fixed this by telling his Chief Secretary to change the law right away. The government will soon show a new framework for investments that makes things clear for everyone.
The policy also wants to include Zimbabweans who live in other countries. President Mnangagwa sees their value in four ways. First, they have the skills needed for economic recovery. Second, they might have saved money that could help when combined. Third, they may have partners with resources who might invest in Zimbabwe. Fourth, they can tell others that Zimbabwe welcomes investment.
Former President Mugabe explained that the law works differently for three sectors. The natural resource sector deals with things like minerals. The government thinks this sector matters most because these resources run out over time. The country must protect these resources for current and future generations. In this sector, the government keeps 51 percent control, with investors getting 49 percent.
The non-resource sector focuses on adding value to raw materials and bringing new technology to Zimbabwe to make work more productive. This helps create jobs and teaches Zimbabweans new skills. This sector allows different arrangements between foreign investors and local partners. It encourages programs that connect businesses, develop enterprises, create value chains, and meet other goals that attract foreign investment.
The reserved sector stays mostly for Zimbabwean business owners, except for businesses already running. Some businesses might get special permission from the right minister. These businesses include stores, transportation services like buses and taxis, property agencies, grain processing, bakeries, tobacco processing, advertising agencies, cleaning services, job agencies, and local arts and crafts businesses.
