Emmerson Mnangagwa, Zimbabwe's president, center, arrives for a meeting of the Zimbabwe Business Club in Harare, Zimbabwe, on Thursday Jan. 18, 2018. Mnangagwa shows no bitterness toward Robert Mugabe, who he served as a right-hand man through the liberation war against Rhodesia and since independence in 1980, and still calls an “icon.” Photographer: Waldo Swiegers/Bloomberg

Zimbabwe will repeal its indigenisation and economic empowerment legislation dealing with ownership of foreign-controlled companies and replace it with a new empowerment law, Finance Minister Mthuli Ncube said on Thursday. 

Addressing parliament, Ncube also said foreign investors could now take majority stakes in the platinum and diamond sectors. 

The empowerment law adopted in 2008 under Robert Mugabe forced foreign-owned businesses, including mines, to cede at least 51 percent of the shares of their local operations to black Zimbabweans. 

In a bid to attract investment, President Emmerson Mnangagwa last year removed these requirements for other minerals except diamonds and platinum, which his government said were strategically important. 

Mthuli Ncube also said yesterday that Zimbabwe’s economy was expected to contract this year due to a drought and severe power cuts, without providing a figure.