Mugabe rules out exception for foreign firms in Zimbabwe
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Mugabe rules out exception for foreign firms in Zimbabwe
HARARE, Dec. 8 (Xinhua) -- Zimbabwean president Robert Mugabe said on Sunday that no sector will be spared from the indigenization law, quashing recent media reports that platinum miners could be exempted from the rule if they establish a refinery.
Zimbabwe's law enacted in 2010 requires foreign businesses operating in the country to cede at least 51 percent of the share- holding to black Zimbabweans. Implementation started first from the mining sector which is a pillar to the country's fragile economy.
Addressing mourners at the burial of a senior military official at the national shrine, Mugabe said there will be no exception in the 51/49 indigenization threshold which seeks to give Zimbabweans greater control in foreign companies operating in the country.
"I have heard in some quarters that there can be exceptions but I am saying no. We are saying 51/49 percent. It's very clear, that is our stand," he said.
Mines minister Walter Chidhakwa was recently quoted in the media saying platinum miners could have a lower indigenization threshold if they build platinum refineries in the country since Zimbabwe currently sends platinum ore to South Africa for processing.
Platinum miners in Zimbabwe argue that it is not yet viable to establish the refinery as less than 500,000 tonnes is currently produced in the country.
HARARE, Dec. 8 (Xinhua) -- Zimbabwean president Robert Mugabe said on Sunday that no sector will be spared from the indigenization law, quashing recent media reports that platinum miners could be exempted from the rule if they establish a refinery.
Zimbabwe's law enacted in 2010 requires foreign businesses operating in the country to cede at least 51 percent of the share- holding to black Zimbabweans. Implementation started first from the mining sector which is a pillar to the country's fragile economy.
Addressing mourners at the burial of a senior military official at the national shrine, Mugabe said there will be no exception in the 51/49 indigenization threshold which seeks to give Zimbabweans greater control in foreign companies operating in the country.
"I have heard in some quarters that there can be exceptions but I am saying no. We are saying 51/49 percent. It's very clear, that is our stand," he said.
Mines minister Walter Chidhakwa was recently quoted in the media saying platinum miners could have a lower indigenization threshold if they build platinum refineries in the country since Zimbabwe currently sends platinum ore to South Africa for processing.
Platinum miners in Zimbabwe argue that it is not yet viable to establish the refinery as less than 500,000 tonnes is currently produced in the country.
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