Foreign investors can own up to 100 percent shareholding of their companies, depending on the merit of their proposals, a Zimbabwean cabinet minister said on Wednesday.

Economic Planning and Investment Promotion Minister Elton Mangoma told Xinhua in an interview that Zimbabwe was open to foreign investment in all sectors of the economy, and will continue to lure more investors into the country.

"In terms of our investment laws we will allow investors to come in including in areas where they can have 100 percent shareholding," Mangoma said.

"We welcome foreign investment in this country. Chinese investors should know that if they don't come in quickly, someone else will take these investments."

He said Zimbabwe had vast investment opportunities in such sectors as infrastructure development, energy, mining and manufacturing.

"It's free for them (Chinese investors) to come in. We don't have reserved areas where we don't think we will benefit," he added.

Zimbabwe's Indigenization and Economic Empowerment Act promulgated in 2007 limits foreign investment in local companies to 49 percent, but the government can waive the requirement depending on each case.

Recently, the Zimbabwean government approved the acquisition of a controlling stake in a local financial institution by two foreign investors.

A German-based financial group, the African Development Corporation and KMG of Mauritius recently bought a combined 54 percent equity in Zimbabwe's Premier Finance Group (PFG) in a deal worth six million U.S. dollars.

An indigenization and empowerment pressure group initially raised objections to the deal for undermining the Indigenization and Economic Empowerment Act, but the group has since approved it after noting some positive elements.

According to the agreement between PFG management and the two investors, PFG would list on the Zimbabwe Stock Exchange in the next three to five years.

Through public listing, foreign shareholders will reduce their stake by selling part of their equity to local investors.

If no listing takes place, part of the foreign shareholding would be sold to locals within the same period. The bank's management will also be dominated by locals.

Youth Development, Indigenization and Empowerment minister Saviour Kasukuwere defended the transaction, saying it would boost the financial capacity of the nation.

"We will be positive on this one for the nation requires financial capacity," he said.

The minister said the deal was in the best interest of the financial services sector, currently in need of capital inflows.

The arrangement represents one of the few investment deals Zimbabwe has sealed since promulgation of the Act.

The Zimbabwe National Chamber of Commerce applauded the deal, saying it was in the interest of both Zimbabwe and investors.

"We have always wanted a situation where investors can come in and have confidence to do business with us," ZNCC president Obert Sibanda told Xinhua.

"We believe the deal will create quite a lot of confidence among foreign investors."

Mangoma said Zimbabwe's inclusive government was on record stating that it would treat each investment case differently, with a provision for surpassing the equity thresholds if need arose.

China has been eying investment in Zimbabwe in recent years, particularly in agriculture and mining.

By XINUA