Zimbabwe’s Parliamentary Legal Committee said the country’s Sovereign Wealth Fund Bill doesn’t contravene the constitution, paving the way for the adoption of legislation that could see the fund allocated as much as a quarter of mining royalties.
Zimbabwe’s government is willing to negotiate royalties with mining companies, Finance Minister Patrick Chinamasa said after the government proposed channeling a quarter of the levies into a planned sovereign wealth fund.
Zimbabwe’s state-controlled newspapers have exposed alleged fraud and inflated salaries at government companies, stoking speculation of ruling party infighting over who will succeed 89-year-old President Robert Mugabe.
Banks operating in Zimbabwe support the push toward ownership quotas and are not concerned that indigenization will damage the industry, said George Guvamatanga, president of the nation’s bankers’ association.
Five years after standing on the brink of electoral defeat, Zimbabwean President Robert Mugabe was inaugurated to extend his 33-year rule with renewed power at home and acceptance from neighboring countries.