Last year, Mugabe vowed that he will enforce indigenous Zimbabweans to control over 50% of foreign owned companies in Zimbabwe.
Then he said “there are companies in this country that still refuse to accept our empowerment policy…well, this is 2015 and, of course, we are in December, the end of year but certainly come January and it’s 2016, that stubbornness and resistance we say should end in 2015.
“In 2016, we will not accept a company which refuses and rejects our policy indigenisation and empowerment in a manner in which we described.”
Indigenous Zimbabweans as acknowledge by the ‘Indigenization and Economic Empowerment Bill’ which President Mugabe signed into law in 2008, have the right to take over and control most of the foreign-owned companies in Zimbabwe.
To be precise, the Bill stipulated that more than 50 percent of all the businesses in the country will be transferred into local African hands.
Now, the deteriorated state of the country’s economy has compelled the old leader to soften the controversial foreign company law.
Mugabe has announced plans to amend the indigenization laws which has been continuously blamed for distracting investments in the country.
It’s needful to remind you that the law was meant to empower the black population who were disadvantaged by colonial rule.
However, many have likened the law to the nation’s land distribution policy saying it has only benefited Mr. Mugabe’s allies.
The land distribution policy enabled Mugabe to redistribute commercial farms owned by non-black-Africans to native Zimbabweans. Severally, the policy has been identified as the root of the economic crisis in the country.
The land redistribution policy essentially chased many white farmers out of Zimbabwe.
Not long ago, the Zimbabwean government also decided to water down the land redistribution policy.
It startissuinging lands to white commercial farmers in order to mend the broken economy of the country.