Zimbabwe move on firms' ownership.
A new Zimbabwean law that forces companies to sell a majority stake in their businesses to indigenous people has come into effect.
Firms worth more than $500 000 run by non-indigenous people have five years to sell 51% stake. When this hasn't happened they will get a sentence which can result into jail-time.
The president Robert Mugabe has said more than once that the companies would be foolish not to comply to the law. The law applies only to all firms controlled by non-indigenous Zimbabweans.
Mr Robertson says that the government appears to have no wish at all to make the country attractive to the overseas investors. He also thinks that it's a very bad idea, the law on company ownership has further divided Zimbabwe's already strained unity government.
As soon as the skills are taken away from the businesses they now have their eye on, those businesses will also fail. Robertson added that far from empowering the wider population, the move would only benefit those individuals that the government appoints to take control of the companies.
Even congress members aren't all that happy with the new law. They say although the principle of the law is good but we fear that this could lead to a creation of new minority blacks who will just replace the minority whites.
A new Zimbabwean law that forces companies to sell a majority stake in their businesses to indigenous people has come into effect.
Firms worth more than $500 000 run by non-indigenous people have five years to sell 51% stake. When this hasn't happened they will get a sentence which can result into jail-time.
The president Robert Mugabe has said more than once that the companies would be foolish not to comply to the law. The law applies only to all firms controlled by non-indigenous Zimbabweans.
Mr Robertson says that the government appears to have no wish at all to make the country attractive to the overseas investors. He also thinks that it's a very bad idea, the law on company ownership has further divided Zimbabwe's already strained unity government.
As soon as the skills are taken away from the businesses they now have their eye on, those businesses will also fail. Robertson added that far from empowering the wider population, the move would only benefit those individuals that the government appoints to take control of the companies.
Even congress members aren't all that happy with the new law. They say although the principle of the law is good but we fear that this could lead to a creation of new minority blacks who will just replace the minority whites.
Like every law it has it pro's en con's and also people who are pro and con. Some even think that it is a pro white law that is discriminating the black people from which own country it is.
I don't think that this is a good new law, it means that companies will not have the majority of their own country and that means that they don't have the right to do what they want with there own company. It is also discriminating against the companies that are run by non-indigenous people because only them have to sell their stake and not the other companies.
I also think that jail-time as a sentence for not selling their stake is heavy sentence, they could better start with a money fine or a warning.
The future will show us if it is a good law or not.
I based my blog on follow article: http://news.bbc.co.uk/2/hi/middle_east/8536034.stm
Liesbeth Masschelein
I don't think that this is a good new law, it means that companies will not have the majority of their own country and that means that they don't have the right to do what they want with there own company. It is also discriminating against the companies that are run by non-indigenous people because only them have to sell their stake and not the other companies.
I also think that jail-time as a sentence for not selling their stake is heavy sentence, they could better start with a money fine or a warning.
The future will show us if it is a good law or not.
I based my blog on follow article: http://news.bbc.co.uk/2/hi/middle_east/8536034.stm
Liesbeth Masschelein
1 opmerking:
I completely agree with you that this law isn’t a good law at all. I don’t understand the advantages of this law.
For me the penalties are too strict when you violate this law. In my opinion the owners of a company should be able to do with their company what they think it’s the best.
At least this law is a discriminating law because it discriminates the black people from which own country it is.
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