Zimbabwe to Withdraw Nationalization Law

Zimbabwe has withdrawn a law that gives the state the right to take a 51 percent or more majority share in all foreign-owned companies, diamond and precious metals mining companies included. The move, according to the Zimbabwe Independent, comes after it was realized that the law is preventing investments in the economically ruined country.

The Mines and Minerals Amendment Bill was signed into law by President Robert Mugabe in March 2008.

The bill stipulates that, “No restructuring, merger or demerger shall be approved unless indigenous Zimbabweans hold 51 percent shares in the resultant business.” While the bill was never enforced, international mining and exploration companies refrained from investing in Zimbabwe for fear of losing some, if not all, of their investment.