Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Zimbabwe Says Three Foreign Banks Comply With Indigenization Law

Aug. 27 (Bloomberg) -- Three foreign banks operating in Zimbabwe have complied with the country’s local ownership law while government talks with other banks on the legislation continue, Indigenization Minister Francis Nhema said.

“We have explained to them our empowerment laws,” Nhema said in an interview today in the capital, Harare. “There is no problem with our empowerment laws. I’m not changing the empowerment law.”

Under Zimbabwean law, foreign and white-owned companies with assets of more than $500,000 must cede or sell a 51 percent stake to black nationals or the country’s National Economic Empowerment Board. Nhema’s remarks contradict an April statement by Finance Minister Patrick Chinamasa that the government will not force all companies to comply and would rather work on an industry-specific approach.

“Some companies which had pulled out of Zimbabwe a long time ago, such as Pepsi Cola, now want to come back,” Nhema said. “The perception out there is that the law only benefits a few, but this is the wrong perception.”

Foreign banks operating in Zimbabwe include Barclays Plc, Standard Chartered Plc, Standard Bank Group Ltd., Nedbank Group Ltd., Ecobank and Bank ABC. Nhema declined to name the banks that have complied with the local ownership laws.

Mining companies including Anglo American Platinum Ltd. and Impala Platinum Holdings Ltd. have already had indigenization plans accepted by the government.

To contact the reporter on this story: Godfrey Marawanyika in Harare at gmarawanyika@bloomberg.net

To contact the editors responsible for this story: Nasreen Seria at nseria@bloomberg.net John Bowker, Ben Holland

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.