Zimbabwean businesses say new law is unjust

The law has received support from the Zimbabwean indigenous community

Zimbabwe's President Robert Mugabe has signed a new law that gives local owners the right to take majority control of foreign companies, including mines and banks. The bill became law when it was published in the official Government Gazette last Friday.

Parliament passed the bill last September despite objections from opposition parties. The opposition said the law could scare away the few foreign investors still left in the country. The development has shaken the business community with international firms like Anglo American Cooperation and Old Mutual seriously affected.

The law has however received support from the Zimbabwean indigenous community especially those who have the financial base to get into business and take shares.

Mugabe has been very vocal in speaking out about this law, which is seen by many as a political ploy to get votes. However the talking point now is how legal the process is and the legality of the law.

The move is illegal - business
Zimbabwean business people say the move is illegal and only seeks to take away what they legally own that was acquired using their own resources.

Meanwhile election fever is gaining momentum as opposition candidates are gearing up for the much awaited elections. Mugabe still has strong support in the rural areas but this has been split over the coming in of Simba Makhoni.