Northvolt CEO steps down after bankruptcy filing
Peter Carlsson, co-founder and leader of Northvolt since 2016, will remain as advisor as he quit a day after the firm filed for bankruptcy.
Eighty-nine-year-old Zimbabwean president Robert Mugabe is determined to conclude the final phase of his “indigenisation” policy – an economic law under which black Zimbabweans must hold at least a 51% stake in foreign-owned firms.
Recently re-elected for the seventh time, the president addressed a Defence Forces Day rally on Tuesday dismissing allegations that his electoral win was a sham and vowing redistribute the country’s wealth through “total indigenization, empowerment, development and employment,” Reuters reports.
The 2010 law forced foreign-owned mining companies to sell their majority shares to locals. Now, under the final phase, it’s possible that banks are next. During the election period – in an effort to rally support – Mugabe stated that he would take the policy one step further by offering no compensation for the shares taken.
Investors have long feared putting their money in Zimbabwe because of political instability and the ruling party’s strong nationalist agenda. But some major miners are operating in the country including Anglo American Platinum, Impala Platinum Holdings (IMP:JS) and Rio Tinto (NYSE:RIO).
Before turning his attention to miners, the president reduced white ownership of farms, transferring them to black citizens and about 39 to himself.
3 Comments
Peter
Well if the international investors are that scared, then this is the right time for them to recoup their funds by actually selling to the locals so they don’t lose out isn’t it? Why wait for the shares to be taken over for free when you can sell now then!!!! Returns are returns at the end of the day and so long as the new shareholders pitch in with the funds needed to keep the operations running why not!!!!! Sometimes we make lots of noises for nothing. On the LSE who are the shareholders? Local british people same as on the AMEX-Australians TSX-Canadians etc so why not Zimbabweans on the ZSX!!!! That’s how Africa should be going forward Look at JSE why cant all other African countries do the same and prosper accordingly!!!
Sven
You mean they should promote racism as a business plan? Why didn’t Zimbabwe prosper when the farmland was nationalized? Do you have any idea what you are talking about?
TonyA
And if a stock exchange is set up where only indigenous folk can trade these indigenized company shares? Well, that idea is being mooted so as to retain the shareholding amongst the indigenous investors.