July08,2011 | SW Radio Africa (London)
By Alex Bell
ZANU PF's Indiginisation Minister, Saviour Kasukuwere, has threatened to take over foreign owned mining operations in Zimbabwe, saying their indigenisation plans "fall short" of government expectations.
Kasukuwere told the state owned ZBC that "what we are now doing as government is basically to invoke the law and ensure that we, as government, take over those assets."
Foreign owned mining firms recently had to submit their proposals of how they plan to indigenise their shareholding, under the new Indigenisation and Empowerment Act. The controversial law, spearheaded by Kasukuwere and ZANU PF, will see all foreign owned companies in Zimbabwe forced to cede 51% of their shares to local Zimbabweans or government approved groups.
About 173 mining firms have since submitted their empowerment plans, which appear to have been rejected. Kasukuwere has even said that the government won't discuss "so-called empowerment credits" with mining firms that have invested in social projects like schools and hospitals.
Analysts have said that the Indigenisation plans are a serious threat to Zimbabwe's economic future, because they hold no attraction for potential foreign investors. The country's economy is still trying to recover from years of mismanagement under ZANU PF rule, and foreign investment is critical for rebuilding the country.
But ZANU PF's plans will ensure that no foreigners can own businesses, making Zimbabwe even more unattractive as an investment haven.
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