Finance Minister, Tendai Biti, has condemned the country’s business (economic) empowerment law, saying it will only benefit the few black elite. The law passed by Zimbabwean government to allow 51% share of businesses owned by foreigners to be given to locals.

”The transfer is for value which is good but in a situation where the majority are poor, you are just transferring shares from a few rich white people to a few rich black people,” Biti said.

The law is more prevalent in the mining sector. South Africa Impala Platinum has already handed over majority of its Zimplat unit to a state fund, employees and local community.
While he agreed on the need to broaden the Zimbabwe economy, Biti said, ”the best way to empower our people at the present moment is to expand our economy and create as many sectors as possible.”

He sees the economic initiative by President Robert Mugabe’s ZANU-PF party as politically inclined.

There is also pressure on the four foreign banks including Britain’s Barclays Bank and Standard & Chartered Bank to handover 51% of their shareholding, which is being opposed to by Biti and the Central Bank Governor, Gideon Gono.

Both bank have an average of $160million capitalisation.