Tsvangirai's MDC to repeal indigenisation law

HARARE - Morgan Tsvangirai’s MDC says it will repeal a law to force the transfer of foreign-owned firms to local ownership if it wins power in the 2018 elections.

MDC shadow Finance minister Tapiwa Mashakada said the Indigenisation and Economic Empowerment Act has eroded investor confidence and created a sceptical international business community that has developed a wait-and-see attitude.

“Maintaining indigenisation threshold of 51 percent is a zero sum game. The MDC will review the indigenisation policy threshold in a manner that is investor friendly. Regarding domestic investment, lending rates will be slashed for sure. Long-term trade finance as opposed to short-term finance is the key. And capital markets are awash,” Mashakada said.

The law requires foreign companies to sell at least a 51 percent stake to local shareholders in a bid to redress colonial imbalances in a process known as indigenisation, but handing majority control of businesses to locals is putting off investors.

“Addressing confidence issues and corruption will be the first order of business,” Mashakada said.

Comments (3)

sei vasingadi kutipa 51% yacho vasati vazviramba ndosaka south africa ichiita kunge yakabudirira asi zvizvarwa zvemo varimarombe

g40 - 19 September 2017

Better for the atleast bread and butter issues are solved matumbu avo akazara.... Kwete CHIMWE chinyika chinoromboka kusvika mari yakutengeswa .... very selfish zvimapolitician zvemuno.... WE WILL BUILD THIS NATION FROM TRASH STARTING NEXT YEAR... Mwari arimubatsiri wedu

LIKEITIS - 20 September 2017

While in way or other,the so called indigenization & economic empowerment is not good for the much needed foreign investors & therefor somehow bad for our country's short term economic path ,but I think Mashakada has missed the point here & has betrayed the MDC as a mere appendage of the west's global economic suppression - where the west has a strategy to suppress all the economic progress of all other nations of the world.I think n such strategy will never make the MDC win n elections in Zimbabwe.He fails to realize how trump won in America ;he told the Americans the very things they want to hear on their own soil-making America a dominant nation of the world once again;in their capitalist system he promised jobs to thoze without jobs;clinton's claims for equality of the poor & the rich never appealed to them,however nice;Mashakada fails to realize how the people of this nation want to b masters of their own destiny after years of suppression by colonisation thru empowerment rather than given jobs

addmore gudo - 20 September 2017

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