Those with very long memories will recall that round about 1978, IBM Corp pulled out of the Indian market rather than accede to the government’s demand that it offer some equity in the Bombay- based subsidiary to local investors. Times have changed beyond all recognition since then, and in general, IBM is quite happy to take on board equity partners and even restrict its stake in a joint venture to a minority – yet the old issue has just resurfaced in Zimbabwe – a not unattractive market, but hardly in the same league as India. Reuter reports from Harare that Zimbabwe’s state investment promotion agency is threatening to cancel IBM Zimbabwe’s license to operate in the country because the company has failed to comply with rules on taking aboard local equity partners. Only 30% is required.
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