Foreign companies operational in Zimbabwe have revealed that they will stay put in the country despite fears and uncertainty over the recent passing of the Indigenization and Empowerment Bill, a legislation that seeks to localize the business and mining sector in Zimbabwe.

The world's largest platinum miner, Anglo Platinum and Rio Tinto have said they will continue mining and investing in Zimbabwe’s resources sector despite the bid by Mugabe and his government to grab stakes in foreign owned companies.

"We will continue to engage Zimbabwe's government," Trevor Raymond, Angloplat's head of investor relations said in a statement.

Rio Tinto, which has diamond interests in Zimbabwe, has also not been put off by the move by government.

"Rio Tinto is supportive of the move towards indigenization provided that it is done at the right pace and in a way that does not discourage much needed overseas investment in the Zimbabwe mining industry," it also noted in a statement to the media.

Zimbabwe is already suffering from foreign investor flight and skepticism, and coupled with the government’s unsound economic policies of expediency, the country’s year on year inflation has surged to over 100,000 percent amidst severe food, fuel and foreign currency shortages.

Makoni's chances of victory in the polls were boosted when Dumiso Dabengwa, a senior member of Mugabe's ruling ZANU-PF, endorsed him. Makoni is running as an independent.

Mugabe also faces long-time rival Morgan Tsvangirai, leader of the biggest faction of the opposition Movement for Democratic Change (MDC), in the polls. Mugabe may be dangling shares in foreign-held companies to those who may seek to back his opponents, analysts say.

"He (Mugabe) appears to have signed the law to improve his prospects in the election," John Robertson, an independent Harare economic consultant said.

"But that's a short-sighted move, one that will backfire and the broader economy will suffer badly as long as this law remains on the statute."

The world's second biggest platinum producer, Impala Platinum Holdings, is the foreign mining firm with the most operations in Zimbabwe.

"We are not opposed to indigenization, but we would want it to be implemented as smoothly and practically as possible, taking note that we are part of a global marketplace," said CZI president Callisto Jokonya.

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