Mugabe defiant on 51% ownership law

Zimbabwean president, Robert Mugabe, has defended his government's drive to take majority control of foreign-owned companies, saying “investors must pay for exploiting Africa's mineral wealth”.

Speaking to reporters on the first day of his two-day visit to South Africa, Mugabe was cited by Reuters news agency as saying: "The capital that is aimed at mining for example, is drawing from my country a resource that cannot be replaced tomorrow, leaving holes in my country." What we say therefore is we who are owners of natural resources must have at least 51% of the earnings of that company and we allow the company 49%."

Earlier this year, Mugabe approved an indigenisation law obliging foreign-owned firms, including mines, to sell at least 51 percent of ownership to black Zimbabweans.