Cigarette manufacturer British American Tobacco's Zimbabwe unit has warned that an uncertain policy environment threatens future investment, despite signs of economic recovery.
The company, in which BAT Plc controls nearly 60% of the shares, is one of several foreign-owned companies given a 14-day deadline to submit new plans on how they would achieve local majority control under a 2008 empowerment law.
BAT Zimbabwe said though some reforms instituted by President Robert Mugabe and Prime Minister Morgan Tsvangirai, such as the adoption of foreign currencies to replace a local unit destroyed by hyperinflation, were welcome, concerns remain over others.
Mugabe and Tsvangirai set up a coalition government two years ago but the two are sharply divided over the empowerment law, championed by the veteran ruler but which the prime minister says threatens Zimbabwe's fragile economic recovery.
The coalition has overseen economic growth since 2009, following a decade of contraction in which GDP shrank by about 50%, according to government figures.
Zimbabwe, which registered 500billion percent inflation in December 2008, now has single-digit inflation.
Earnings grew 10-fold in the first half to June.
Basic earnings per share rose to 11c from 1c in the first half of 2010, while revenues jumped 88% to $17,56-million.
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