Saturday, 20 August 2011

Foreign firms in Zim given 14 days to comply

The Zimbabwean government has given foreign firms an ultimatum - submit plans to transfer majority to ownership to local stakeholders within 14 days or face closure. The move to pressure foreign firms to hand over power to local people has been on the cards for a while, but this ultimatum appears to have taken some by surprise. Central bank governor Gideon Gono condemned the move, saying that it had created panic in the financial sector. Banks and mining are among the sectors likely to be hardest hit by the imposition of regulations limiting foreign ownership as a licence to operate condition. Gono claims that the central bank is the only body with the authority to issue or withdraw banking licences.

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