via Indigenisation: Three foreign banks comply 27 August 2014 by Bloomberg.com
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, Indigenisation Minister Francis Nhema said.
“We have explained to them our empowerment laws,” Nhema said in an interview on Wednesday.
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, Standard Chartered, Standard Bank, Nedbank, Ecobank and Bank ABC.
Mining companies including Anglo American Platinum and Impala Platinum have already had indigenization plans accepted by the government.