Policy unpredictability spurs capital flight

The rift between Finance and Economic Development minister Patrick Chinamasa and Youth Development, Indigenisation and Economic Empowerment minister Patrick Zhuwao over the implementation the empowerment laws highlights policy inconsistencies which have been the hallmark of the Zanu PF government.

The indigenisation legislation stipulates that at least 51% shareholding of all businesses operating in Zimbabwe should be in the hands of locals.

Chinamasa last week, said companies that had missed the January 2014 deadline to submit plans on how they would comply with the law could do so by March 31 next year, in what appeared to be a softening of government’s stance on the highly-divisive empowerment policy.

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