In Zimbabwe, the government just reinforced its wealth sharing policy by issuing an ultimatum telling foreign-companies to comply with controversial indigenization law. According to the law, foreign companies are to transfer majority stake to black locals.  

Minister of Justice and Indigenization, Patrick Zhuwao, announced on March 22, that Harare gave until April 1 to foreign companies to conform to the indigenization laws or their licence will be revoked. “Law is law, it must be respected,” the nephew of President Robert Mubage told a press conference.

“On Tuesday March 22, 2016, Cabinet unanimously passed a resolution directing that from April 1, 2016, all the ministries proceed to issue orders to licensing authorities to cancel licences of non-compliant businesses,” said Zhuwao highlighting that “there are companies in the country that still refuse to accept empowerment policy”.

Voted in 2007 and enacted in 2008, indigenization law is considered by President Mugabe as the best way to correct inequalities inherited from the colonial period.

Also, Patrick Zhuwao, minimized the negative impact of the indigenization law on foreign investors in the country. “Our economy is oriented by the market. If there is a whole, others will follow,” he said.

International Monetary Fund (IMF) urged Zimbabwe to revise its indigenization law as its economy struggles to restart as a result of implementation of an agricultural policy which expropriates white farmers and of indigenization law.