Zim may stop operations of some foreign, white-owned firms

Govt will cancel operating licences of firms that haven’t complied with a black empowerment law.

Indigenisation Minister Patrick Zhuwao (L) at a media briefing on 23 March 2016. Picture: Facebook.

ZIMBABWE - Zimbabwe's indigenisation minister says government will cancel the operating licences of foreign and white-owned firms that haven't complied with a controversial black empowerment law.

Under the law, firms worth over $500,000 must submit plans on how they will sell 51 percent shares to locals.

Indigenisation Minister Patrick Zhuwao says companies that haven't complied with the law are operating illegally.

He says that the law now requires that their licences be cancelled.

The minister told state ZBC radio that the Cabinet had yesterday resolved to give the cancellation orders to Zimbabwe's licensing authorities.

It's understood the ban could affect firms in the mining, manufacturing and banking sectors.

The Sunday Mail reported that only 50 firms had submitted indigenisation plans ahead of the deadline next Thursday.