A new Zimbabwean law that forces foreign-owned companies to sell a majority stake in their businesses to indigenous people has come into effect. This is going to force firms to flee Zimbabwe.
Overseas-owned firms worth more than $500,000 (£332,000) will have five years to sell a 51% stake, upon the threat of jail sentences. Harare-based economist John Robertson told the BBC’s Network Africa programme that it was “a very bad idea”. He said it would only deter further badly-needed foreign investment.
“The government appears to have no wish at all to make the country attractive to the [overseas] investors,” said Mr Robertson.
