Foreign companies in Zimbabwe have been left scrambling in the dark about their future after the deadline for complying with the indigenisation policy closed last night.
The uncertainty intensified this week when Youth, Indigenisation and Empowerment Minister Patrick Zhuwawo insisted that the government would cancel the operating licences of companies that failed to comply.
The move, which has been described as an albatross around the country’s already struggling economy has left South African companies such as Standard Bank, Impala Platinum, Nedbank, Aquarius Platinum, Anglo Platinum and Tongaat Hulett in the lurch.
Zimbabwe, once the bread basket of Africa, is now ranked among the lowest in the region in terms of agricultural production, the European Union Ambassador to Zimbabwe, Fillipe Van Damme said Thursday.
Van Damme made the remarks in Harare while addressing delegates to the Initial Consensus Based Compensation Mechanisms Workshop meant to look at possible ways of compensating dispossessed white farmers whose land was expropriated by the government during the chaotic land reform programme which began in 2000.