Zimbabwe suspends majority local-ownership rules

Zimbabwe suspends majority local-ownership rules http://www.reuters.com

Tue Apr 13, 2010 2:32pm EDT

* Rules to sell majority stake to locals suspended

* Deadline for proposals had been Thursday

* Regulations being reviewed

HARARE, April 13 (Reuters) - Zimbabwe's unity government has suspended and will review rules forcing foreign-owned firms to sell a majority stake to local people, a spokesman for Prime Minister Morgan Tsvangirai said on Tuesday.

Under the regulations, which came into effect on March 1, foreign-owned companies, including banks and mines, had 45 days to submit proposals on how they planned to sell 51 percent of their shares to black Zimbabweans within five years.

The deadline for submitting proposals was Thursday April 15.

"The cabinet has today declared those regulations null and void, and they are being suspended to allow for broad-based consultations on the best way to proceed," spokesman James Maridadi told Reuters.

"Nothing is going to happen until the regulations have been reviewed to get a consensus on the way forward," he said.