The Finance Minister of Zimbabwe, Mthuli Ncube has told parliament that the government will repeal the existing legislation related to indigenisation and economic empowerment and introduce a new law that will permit foreign investors to hold controlling stakes in companies in the diamond and platinum sectors, according to local media reports.

The empowerment law, which came into force in 2008, mandated that local black Zimbabwe citizens should hold at least 51% stake in any mining project, which was last year amended to exclude all sectors other than diamonds and platinum.

The reports state that once the new law is in place, terms of ownership can be directly negotiated between foreign investors and local partners without any restrictions placed by the government.

The change will facilitate the recently announced joint venture for diamond exploration and mining between ALROSA and the ZCDC, with the former expected to have a 70% share in ownership.

According to the reports, the minister also said that the government was drawing up a “comprehensive strategy” for the mining sector with the aim of transforming it into a US$ 12 billion industry by 2023.