Zimbabwe gives foreign firms March deadline for empowerment plans

* Foreign firms to submit empowerment plans by March

* Government will not pay for shares in mines

HARARE, Dec 24 (Reuters) - Zimbabwe's finance minister onThursday gave foreign-owned firms operating in the country,including mines and banks, a March 2016 deadline to submit planson how to comply with a law requiring them to sell at least 51percent shares to locals.

The Indigenisation and Economic Empowerment Act was passedin 2008 under President Robert Mugabe's black empowerment drive,but implementation has been slow, with potential foreigninvestors warning the law would hinder much-needed investment inthe southern African nation.

"All companies that have not yet submitted theirindigenisation implementation plans as required by the Actshould submit their applications by the new deadline of 31 March2016," Patrick Chinamasa said in a statement.

The previous deadline was January 2014.

Chinamasa said existing foreign-owned firms could continueoperating for up to five years, including a possible extension,but would be forced to pay an "indigenisation compliance levy asa trade-off for non-compliance."

The world's two largest platinum producers Anglo AmericanPlatinum and Impala Platinum and bankinggroups Standard Chartered Plc and Barclays Plc are some of the foreign-owned firms with operations in Zimbabwe.

Amplats and Implats have previously submitted empowermentplans, which are still being considered by Mugabe's government.

Chinamasa reiterated the government would not pay formajority shares in mines, saying the government's contributionin the business was the underground resource owned by the state.

Foreign shareholders in a mine can, however, dilute thegovernment's stake by injecting new capital. But the state willhave up to five years or more to buy new shares in the businessto restore its 51 percent shareholding, Chinamasa said.

Foreign-owned companies in manufacturing, financial servicesand construction will have to directly sell between 20 and 30percent shares to locals, while empowerment credits, such asfunding youth and women programmes, make up for the balance.

Chinamasa said no new foreign investors would be allowed inreserved sectors such as fuel retail, cigarette manufacturing,retail and wholesale trade and crop production unless underspecial circumstances determined and approved by Cabinet. (Reporting by MacDonald Dzirutwe; Editing by Ed Stoddard andMark Potter)