Foreign Banks Told To Indigenise Within The Next Year

Zimbabwe’s government has told foreign banks that they have to sort out their indigenisation issues within the next year.

In 2007 he government enacted a law that requires all foreign-owned companies to have 51% equity being owned by locals. The one-year deadline also affects hotels and telecommunications companies.

The government has played hardball with companies who have not been keen on the law. The biggest of the lot was the Impala-owned Zimplats which recently struck a deal with the government to cede 51% of its stake to locals.

Reserve Bank Governor Gideon Gono is not a fan of the indigenisation model and prefers a supply-chain based model. This is one where locals get priority on contracts to supply the big companies.

Empowerment and Indigenisation Minister Saviour Kasukuwere disagrees.