the Zimbabwe Iron and Steel Company or ZiscoSteel after an unsuccessful bid
two months ago
Gibbs Dube | Washington 03 September 2010
The Zimbabwe government in conjunction with the National Indigenization and
Economic Empowerment Board is said to be drafting legislation to block
foreigners from investing in the retail sector.
Sources said the law is aimed in particular at Nigerian and Chinese
entrepreneurs who established a major presence in Zimbabwean retail over the
decade of economic decline through 2009.
The sources said officials will be seeking the repeal of the Zimbabwe
Investment Authority Act under which foreign investors are allowed to
participate in retail merchandising.
Affirmative Action Group President Supa Mandiwanzira argued that the
government should use the indigenization program to block foreigners from
investing in the retail sector.
Mandiwanzira told VOA Studio 7 reporter Gibbs Dube that local authorities
should immediately cease issuing new retail licenses to foreigners. But
economic commentator Rejoice Ngwenya said moves to block foreigners from the
retail sector will cause chaos in Zimbabwe.
Economist Godfrey Kanyenze said such discriminatory laws are
counterproductive.
Meanwhile, Jindal Steel and Power of India is re-bidding for a major stake
in the Zimbabwe Iron and Steel Company or ZiscoSteel after an unsuccessful
bid two months ago.
According to the Economist newspaper of India, the steel giant wants a 70
percent stake in ZiscoSteel though the Zimbabwe government is offering only
a 51 percent stake.
Jindal Steel's previous bid was reportedly rejected by the government which
said the company had no concrete plans to handle the ZiscoSteel debts
amounting to some US$300 million.
Economic and political commentator Bekithemba Mhlanga said the huge
ZiscoSteel debt may force government to accept a multinational corporation
to rescue the collapsed steelmaker.
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