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Zimbabwe Government Advances Bill For Black Control Of Companies

Zimbabwe's parliament will soon consider legislation which would oblige white-owned companies to concede a controlling stake to black Zimbabweans.

The National Indigenous and Economic Empowerment Act as drafted stipulates that black Zimbabweans should acquire a minimum 51% shareholding in all white-owned companies, whether the owners of such companies is domestic or foreign.

Similar legislation preceded the land reform program which many economists say has been the root cause of the country's steep economic decline since 2000.

Minister of State for Indigenization and Empowerment Paul Mangwana said the cabinet approved the bill and sent it to the clerk of parliament.

Mangwana told reporter Patience Rusere of VOA's Studio 7 for Zimbabwe that the law is not merely intended to take over companies but to give indigenous black Zimbabweans the economic stake they deserve.

More reports from VOA's Studio 7 For Zimbabwe...