SA govt to meet business on new Zimbabwean law

The South African government would meet with business leaders to see how the country's interests in Zimbabwe could be protected in light of a new law giving locals a controlling share in businesses, Deputy Foreign Affairs Minister Aziz Pahad said today.

Zimbabwean President Robert Mugabe approved an Indigenisation and Economic Empowerment Bill last week, which requires locals to own a 51% stake in all the country's firms.

Pahad, speaking at a weekly media briefing at the Union Buildings, said the South African government was studying the contents and implications of the Zimbabwean law.

"We are studying this bill more carefully and then will initiate discussions with the South African business community to get an understanding of how they interpret the bill and how we work together to protect… South African interests in Zimbabwe.

"In the end they are the best equipped to inform us specifically how this and any other law would impact on them specifically," Pahad said.

The law has raised fears among foreign-owned companies in Zimbabwe, including many South African businesses, that they will lose control of their business. - Sapa