Foreign Direct Investment and Zimbabwe’s Indigenisation and Economic Empowerment Act: Friends or Foes

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Author: 
T Chidede and T Warikandwa
Journal Citation: 
Midlands State University Law Review
Media Neutral Citation: 
[2017] MSULRJ 2
Publication Date: 
18 August 2017

 

The implementation of Zimbabwe’s indigenisation policy as well as the promulgation of relevant enabling legislation has triggered an unintended economic slowdown. The economic slowdown has been exacerbated by economic sanctions imposed on Zimbabwe by the United States of America (USA) and European Union (EU)1 in response to the land reform programme.2 Subsequent economic hardships faced by many of the country’s citizens as a result of the economic slowdown have generated vigorous debates amongst Zimbabwe’s policy makers, business as well as labour unions regarding the practicality of a sustained implementation of the indigenisation policy and its enabling legislation.3 Part of the issues informing the debates has been the significant decline in Foreign Direct Investment (FDI).4 Questions have thus been raised regarding the efficacy of the manner of implementation of Zimbabwe’s Indigenisation and Economic Empowerment Act (IEEA)5 and its suitability to affording room for stimulating FDI.6