Zimbabwe Business Watch : Week 25
Every day, business has to cope with attacks from all directions. At the moment, Government is drawing up indigenisation legislation that will effectively steal shareholding of 51% of every “organization, association and business that operates for gain”. Furthermore, the Minister, through the board he appoints, reserves the right to co-opt “indigenous” shareholders of the Board’s choice if the board so desires. The most astounding aspect of these proposals is the business may be levied in order to raise the funds to assume the 51% shareholding. This undoubtedly paves the way for the system of patronage to continue in order for an unpopular regime to maintain conditional support at a time when there is growing discontent among senior party officials. The USD rose to new heights of ZD 180 000 up from ZD150 000 two days ago signaling a huge jump in inflation in the forthcoming weeks.
