Harare – Zimbabwe has made drastic changes to its controversial economic empowerment laws, restricting it to only two minerals.
Presenting the 2018 National Budget on Thursday, Finance and Economic Empowerment Minister Patrick Chinamasa said the indigenisation and empowerment threshold will only apply to diamonds and platinum.
“Accordingly, the proposed amendments will confine the 51/49 indigenisation threshold to only these two minerals in the extractive sector,” said Chinamasa.
He noted that apart from the two minerals, the rest of the extractive sectors as well as other economic sectors are open to any interested investor.
“The 51/49% threshold will not apply to the rest of the extractive sector, nor will it apply to the other sectors of the economy, which will be open to any investor regardless of nationality.”
Zimbabwe introduced the controversial law back in 2010 in an effort to have indigenous Zimbabweans own and benefit from the exploitation and utilisation of the country’s natural resources.
The law was, however, met with resistance and scepticism by international investors who considered it as a way of expropriation.