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Mugabe Plans To Seize Assets Worth $7 Billion
President Robert Mugabe’s government plans to seize control of foreign-owned mines without paying for them as part of a program to accumulate $7 billion of assets following his July 31 election victory, a minister said.
The government will compensate bank owners as it takes control of their companies, Saviour Kasukuwere, the minister in charge of the program to compel foreign companies to cede 51 percent of their assets to black investors or the government, said in an interview in Harare, the capital, today.
His comments echo a suggestion made by Mugabe earlier this year.
“When it comes to natural resources, Zimbabwe will not pay for her resources,” Kasukuwere said.
“If they don’t want follow the law that’s their problem.” Non-compliant mine owners risk losing their licenses, he said.
Anglo American Platinum Ltd., Impala Platinum Holdings Ltd., Barclays Plc and Standard Chartered Plc are among companies that operate in the country.
Other industries may have to yield smaller stakes to black owners, Kasukuwere said.
Metals and minerals, including platinum and gold, accounted for 71 percent, or $719.9 million, in exports in the first four months of this year, the state-controlled Herald newspaper said, citing the finance ministry.
The government and black Zimbabweans will take half of the value of assets it has identified in the economy, he said.
The state empowerment fund has so far acquired about $1 billion in assets, he said.
New Bourse
The government will open a new stock exchange to trade the black-owned stakes in the companies, he said.
Trading at the Harare Stock Exchange, which would rival the Zimbabwe Stock Exchange, may start within 100 days of the new government taking office and will only be open to black Zimbabweans, he said.
Investments in Zimbabwe will be protected by the government as long as companies do not seek to exploit the country without its people benefiting, Kasukuwere said.
“We want to welcome investors, as long as it’s in partnership with our people,” he said.
“It’s a logical economic plan that has been put forward by our party for Zimbabweans to achieve greater benefits from their resources. Forty-nine percent is a huge part of the cake.”
Plunging Shares
The main index on the Zimbabwe Stock Exchange fell 2.2 percent today, adding to yesterday’s 11 percent decline.
Most banks in the country have stopped issuing new loans because of concern over policy, two chief executive officers said yesterday, declining to be identified because they didn’t want to anger the government.
Mugabe’s victory was announced on August 3 by the Zimbabwe Electoral Commission.
“Over the next five years Zimbabwe is going to witness a unique wealth-transfer model that will see ordinary people taking control of the economy,” Mugabe’s Zimbabwe African National Union-Patriotic Front said in a statement handed to reporters in Harare today.
The measures will stymie investment, said Michael Kavanagh, an analyst at Noah Capital Markets in Cape Town.
“To what extent does the Zimbabwe government interfere with operations? To what extent does it try to extract cash from those operations? Does it contribute its share of capital,” he said in an interview.
“At this stage it doesn’t look to me like the Zimbabwean government has any intention of being reasonable.”
Source: Bloomberg News
Posted by
isaac
August 13, 2013 at 11:37 am
This Mugabe man will stop at nothing until Zimbabwe as a country is brought to its knees. What a blunder at his age.
Ndaje Kahks
August 13, 2013 at 12:36 pm
aT 89 HE HAS ONLY A FEW YEARS LEFT
One Me
August 13, 2013 at 11:58 am
Mugabe is one of mad Presidents
The Jackal
August 13, 2013 at 12:13 pm
Well you can call Mugabe all sorts of names but do some research on these companies, you will learn that they are reaping off Africa to the extent that in a few years they will leave Africa without any resources and you will not be allowed in Europe. The only problem here are the methods Mugabe is using otherwise the country needs those shares and retain some money which is being pumped out of the country!
Zyukuwalola
August 15, 2013 at 7:41 pm
Yes Jackal. Well thought and said. There is remorseless plunder of our God given resources, though some one must come up with better ways of stopping these shameless thieves.
Mpangula Mputyu aka TeamDoraPetauke2013
August 13, 2013 at 12:49 pm
There GOES Mugabe. Straight after insulting the bed ridden sick Nelson Mandela a few days ago.
saviour
August 13, 2013 at 1:17 pm
its a daring plan and a very good idea from a man constantly searching for a way to push Zim forward. Its success will depend on the local investor and how they use their wealth.
rinex
August 13, 2013 at 2:09 pm
Where is obama,come and shoot this selfish babboon to go to hell,america we can count on your,am a zimbabean sellin vegetables in zambia.
muzukulu
August 15, 2013 at 2:48 pm
you are a big full,go back and claim your share.
zanu
August 13, 2013 at 3:55 pm
Only fools view Mugabe as mad. It is high time the locals benefited from the resources. Desparate times, demand desparate measures. Why should we continue to go hungry and yet the investors are busy piling up trust funds for 100 generations to come?
Him Change
August 14, 2013 at 2:49 pm
You foool! how many locals are in zimbabwe..do u think if that happens to zambia how many of u will have a piece of copper ore in your hands. check rwanda, ivory coast, siera leon etc what is happening its becoz of foolish locals idea killing each other everyday, wars everytime coz every local want to sale on themselves and government now has no control. Now what are u trying to do, confuse the zimbabweans? think again.
PF FOREVER
August 13, 2013 at 6:32 pm
Mugabe is legendary and he knows what hes doing….
black is white secret
August 13, 2013 at 9:07 pm
“The white man’s happiness cannot be purchased by the black man’s misery” Frederick Douglass.
Sobongo
August 13, 2013 at 9:16 pm
Viva Bob
Operation Changanya style
August 13, 2013 at 10:12 pm
This is a wake up call to foreigners about building in unstable countries. After you build you get kicked out!
Exit Only
August 14, 2013 at 5:22 am
I wish we never left Zambia, never falling victim to the racism of the BGF’s negative influence in Zambia. I would have Mugabe working as my garden boy by now for sure.
monjeza
August 14, 2013 at 11:24 am
On all the blunders that Uncle Bob has made, i think that this is the wisest decision he has ever made.Look at what is taking place in our own country? Investors are exploiting both our natural resources & the masses! I work in a company were a so called expatriate mechanic is getting 4 times as much compared to the local mechanic. When we compare the skills, the local is far much better in perfomance than these termites that have come to invade our beloved country! What one wonders is, who is going to come to our aid. Only Jesus himself coz mankind has proved failure. Much leaves to be desired on the type of earthly gorvanance taking place today.
MAFUPA YOKOYOKO
August 14, 2013 at 12:28 pm
Its time Africa did away with western imperialism! Only those who want da west 2 dominate n plunder African resource would b against Mugabe. I jst wish o african leaders were like mugabe…
Joe The Plumber
August 14, 2013 at 2:43 pm
So there is a bus going round somewhere in UK targeting and urging black people to go back to Africa.
We have a black woman in Italy with banana’s raining on her each time she opens her mouth.
(Illegal or not if you are selectively targeted is wrong)
Mugabe will give you your taste of your own medicine. Watch this space. This time we wont restrain him. You thought grabbing farms was bad , u wait and see.
isaac
August 15, 2013 at 2:48 pm
Joe the plumber, issues should always be handled with at most care if a black minister in Italy bananas are raining on her each time she opens her mouth,doesn’t necessarily mean that we black should respond in un civilized manner. Here in Zambia we are giving pipo from the west a very candid example by having Dr Guy Scott as VEEP. Doesn’t that send a strong signal to them that we are civilized?