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The next target sector appears to be the banking sector, following recent comments by central bank governor Dr Gideon Gono that banks should also comply with the law. Previously, Gono has opposed the law, saying it could offset the stability that the sector is currently enjoying.

"The fact that Tsvangirai and Gono have endorsed this law means that there is not going to be any top official standing in the way of implementation of this law and this is very bad because all the people who could have stood out and resisted such a move have now been pressured into backing the policy," said economist Kudakwashe Murerekwa.

Tsvangirai said during a discussion at the World Economic Forum in SA recently that "across the political divide" there was consensus over the "principle of citizenship empowerment". He said, however, that there was inconsistency on the implementation aspect of the law.

His statements have left investors, especially those in the mining sector, scrambling to submit compliance plans, with most of them, including Anglo Platinum, ENRC, Zimplats and New Dan Mining, having already done so.

Some political commentators say Mugabe is pushing the empowerment law to win the crucial votes of the economically active young citizens ahead of possible polls this year or early next year. Mugabe's Zanu-PF party is reportedly divided over whether to hold polls this year, with Tsvangirai and the other two Movement for Democratic Change (MDC) formations fiercely resisting Mugabe's move to hold early elections.

Apparently, some observers have said that foreign mining companies have no option but to comply since they have already invested so much into their Zimbabwe operations.

Impala Platinum CEO David Brown said this week that his company was not opposed to the policy in principle. He said, however, that the 51% threshold for majority shareholding that should be ceded "will impact significantly on future expansions".

"What we are opposed to is the 51%. We just don't believe a 51% equity stake adequately reflects the risk/reward equation," he added.

Mining companies have until the end of September this year to comply with this law.

African Consolidated Resources, the southern Africa-focused junior minerals concern, said yesterday that it had also submitted its plans to the government of Zimbabwe. It said: "Since the business of Canape and of all its subsidiaries are, in exploration phase, financed by loans from African Consolidated Resources or other group companies, none of Canape or its subsidiaries has a net asset value of or above one US dollar."

Toronto-listed and Zimbabwe-focused junior gold mining concern, New Dawn Mining, is taking a different compliance path. "The plan addresses the requirements of the legislation, and includes engaging directly with indigenous capital partners in Zimbabwe, such as pension funds and investment firms that qualify as indigenous investors."

Moreover, New Dawn Mining said it was bracing for the worst - transferring majority shareholding to designated empowerment vehicles - if its plan, which also entails listing on the Zimbabwe Stock Exchange, was to be rejected by the government. The company operates the Turk gold mine and controls about 88% of Central African Gold, which has over three major gold mines in Zimbabwe.

Government officials have revealed to I-Net Bridge/BusinessLIVE that there is no going back on the indigenisation law and that more sectors will be targeted in the coming months. Sources at the empowerment ministry said "more sectors will be targeted" in the coming months.

Gono has already given the strongest hint that the banking sector could be next in line. Foreign firms in this sector include Barclays Bank, Standered Chartered Bank and JSE-listed Standard Bank, through its subsidiary Stanbic Bank.

The central bank boss said punitive measures would be taken against foreign financial institutions that failed to comply with the indigenisation law.

Mugabe has already instructed Kasukuwere, the empowerment minister, to target Nestle Zimbabwe, Barclays and Standard Chartered Banks.