afrol News, 10 February - Zimbabwe's Prime Minister Morgan Tsvangirai has rejected the official announcement of the government legislation that seeks to entitle blacks to own 51 percent of all businesses operating in the country.

Mr Tsvangirai said that the law would not be implemented as it had not gone through proper stages that are compulsory.

"I am in charge of all policy formation in cabinet and neither myself nor the cabinet were shown these regulations before they were gazetted," Mr Tsvangirai said a statement.

The Indigenisation and Economic Empowerment regulations set out a maximum jail sentence of five years for officials from companies that fail to cede majority control to black Zimbabweans.

The laws, which come into effect on 1 March, compel all businesses with assets worth more than $500,000 to be 51 percent black-owned within five years. Anglo American Plc, Impala Platinum Holdings Ltd. and Old Mutual Plc are among foreign companies operating in Zimbabwe.

“The regulations would have scared off foreign investors, already jittery about Zimbabwe as an investment destination, as well as disenfranchising citizens,” Mr Tsvangirai said in the statement, further stating that without foreign direct investment in Zimbabwe, it will be difficult to kick-start the national economy.

The law was reportedly passed in 2008 when parliament was still dominated by supporters of President Robert Mugabe, but it had never been implemented.

By staff writer

© afrol News

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