Zim needs clarity on indigenisation laws

Harare - Zimbabwe must provide "clarity" on its controversial indigenisation programme if it is to lure investors, Finance Minister Patrick Chinamasa told lawmakers on Thursday.

Presenting the 2015 budget, Patrick Chinamasa said over 4 600 companies had closed since 2011, throwing over 55 000 people out of work.

Chinamasa said to lure investment, it was up to the Zimbabwe government to ensure an air of "consistency and predictability" with regards to its black empowerment law, seen by critics as chasing away potential investors.

"Given the need for continually improving our investment climate, in light of the need for domestic and foreign investment, the 2015 budget needs to further provide clarity on our indigenisation and empowerment framework," Chinamasa said in a speech to President Robert Mugabe and MPs in the national assembly.

Zimbabwe's indigenisation law requires big foreign and white-owned firms to hand over 51% majority shares to local black businessmen.

In his budget speech Chinamasa suggested the 51% requirement will still stand, but the programme couldn't be achieved "overnight" and timelines given to investors to comply with the law should be open to negotiation.