How will foreign-owned companies already operating in Zimbabwe react to the new law?
Foreign companies will halt new investments while waiting for clarity. Some will close their businesses or transfer their operations elsewhere. Few will abide under pressure. The motive behind the law is obviously not that far-fetched as a country like South Africa has its own black economic empowerment policy. Is there a better alternative to the empowerment law as it currently stands? The motive for Zimbabwe may not be black economic empowerment at all and these programmes are not the same as those in South Africa. The BBBEE Act in South Africa has sector agreements negotiated by industry and recommend entry percentages that does not translate into ceding control of a business. The Zimbabwe situation was not negotiated and will have different and drastic consequences. There are other programmes which we had suggested to government, programmes which give opportunity to blacks to enter business and compete. The government, however, did not listen. The diaspora would like to revive the
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