Zimbabwe’s unity government is reviewing rules forcing foreign-owned firms to sell a majority stake to locals, a cabinet minister said today, adding that the regulations were published prematurely last month.

The regulations came into effect on Monday and give foreign-owned companies, including banks and mines, 45 days to submit proposals on how they plan to sell 51% of their shares to black Zimbabweans within the next five years.

"Those regulations were published prematurely," Welshman Ncube, Industry and Commerce Minister told business executives.

He said the rules had not been submitted to a cabinet committee for debate on their legality and whether they were consistent with government policy. The committee would then make recommendations to the government.

"That did not take place. It is now taking place and all the ministers will be asked to make contributions," Ncube said.

By Staff reporter and agencies