The government of Zimbabwe has repealed the controversial Indigenization and Economic Empowerment Act replacing it with the new Economic Empowerment bill, in a move to install policies that influence the revival of the economy.
The Mugabe-era Indigenization and Economic Empowerment Act required foreign companies to cede 51 percent of their shares to locals and the new Economic Empowerment bill is set to attract Foreign Direct Investment.
The reform is an effort to attract serious investors as the Act has not resulted in improved socio-economic welfare for the populace resulting in economic decline, political discontent, and disaffection with the previous regime under former President Robert Mugabe, local media reports.
“The second republic attaches special importance to opening up the nation for business, hence the promulgation of the Finance Act No. 1 of 2018 which amended the Indigenisation and Economic Empowerment Act. It will be recalled that the amendment removed the 51/49 percent indigenization shareholding cap,” reads the twenty-eighth cabinet press briefing.
Zimbabwe has struggled to compete for serious investors in the region, with those interested in venturing into the country’s business sector staying on the fence citing that the country has inconsistent policies and unfriendly economic policies which deter investment, it is reported.
