The controversial Zimbabwe company grab Act is now law!

Also overnight (didn't sleep very well!), I caught a news report on the recently introduced company grab act which is now law in Zimbabwe.

Under this act foreign companies with net assets of more than $1 (initial proposal was $500,000) are required by law to divest a 51% controlling stake to members of the indigenous population.

The first sector being targeted is mining and the share prices of London Stock Exchange quoted Platinum miners: Impala Platinum and Aquarius Platinum have been hit as a deadline for their plans/proposals has passed.

Seems to be more of the same from Zimbabwe but wouldn't a straight forward tax on production or licensing agreement be easier and more palatable?

Again it raises questions about the wisdom of Neil Woodford's investment (albeit a relatively minor £55m) into such a volatile region (earlier post: Portfolio housekeeping and additions: Talk Talk, Invesco Perpetual, Vodaphone, and Tesco).

Article links:

- www.bulawayo24.com: The controversial Zimbabwe company grab Act is now law

- citywire.co.uk: Woodford snaps up 29% stake in Zimbabwe investment fund

- Portfolio housekeeping and additions: Talk Talk, Invesco Perpetual, Vodaphone, and Tesco.