Zimbabwe’s cabinet has agreed the principles of the so-called Economic Empowerment Bill, which aims to repeal past legislation that has been criticised for being unattractive to investors.

Minister of Information and Publicity, Monica Mutsvangwa said during a post-cabinet press briefing: "The principles will repeal the Indigenization and Economic Empowerment Act … and pave way for the enactment of the new Economic Empowerment Act.”

The Minister went on to add that the new bill will be aligned to the Constitution of Zimbabwe, Vision 2030, national development strategies, the United Nations Sustainable Development Goals and the African Union Agenda 2063.

"The formulation of the draft Bill will be undertaken through a multi-stakeholder consultative process under the Whole-of-Government Approach. The new law will provide for the establishment of the National Economic Empowerment Fund, mainly through Treasury funding. The Act will also establish a Corporate Social Responsibility Framework," she stated.

The current bill, which was announced back in 2008, has been described as being investor unfriendly, particularly in the country’s minerals sector, which as a result is hampering foreign direct investment.

When the bill was passed, Zimbabweans were entitled to a 51% shareholding in the majority of foreign-owned businesses, however certain sectors were exclusively allocated to locals.

Nevertheless, the law has since been revised to permit increased participation in the country’s economy from foreigners. In addition, shareholding is now dependent on agreed terms, as foreign shareholding in Zimbabwe can now reach 100%, according to reports.