Mugabe warns would-be foreign investors

Foreign companies have to respect Zimbabwean laws if they want to do business in that country.

Zimbabwean President Robert Mugabe. Picture: Supplied

HARARE - President Robert Mugabe on Sunday warned would-be foreign investors that they do not have rights to own local resources.

The 88-year-old leader was speaking at the launch of the community trust share scheme earlier.

He said foreigners had to understand the requirements of the indigenisation laws, which say that at least 51 percent shares must be handed to local black businesses.

Mugabe said just because foreign investors have capital, it does not give them a right to own Zimbabwe's resources.

Indigenisation laws say that foreigners can hold a maximum of 49 percent shareholding in Zimbabwean firms, regulations that have made some investors wary.

Mugabe said he has no objections to investment partnerships with companies from other African nations, as long as they understand the requirements of indigenisation.

He told locals that Zimbabwe has not yet reciprocated the sanctions the West has imposed, but it still could.