Posted on 02/09/2010 9:46:02 PM PST by vikingd00d
White-owned companies in Zimbabwe are to be forced to hand majority control to black businessmen in a move that could lead to chaos rivalling the seizure of the country's commercial farms. The new regulations demand that all foreign and locally owned companies hand over at least 51 per cent ownership to black Zimbabweans.
Thousands of firms, including the Zimbabwean operations of giants such as Barclays Bank, Standard Chartered Bank and the mining company Rio Tinto, will be affected, and they must submit their plans to comply by March 1.
Owners who fail to comply could be jailed.
The new law plunged the unity government into deeper crisis. Morgan Tsvangirai, the leader of the former opposition Movement for Democratic Change turned prime minister in the coalition, told The Daily Telegraph the move had been made without his knowledge.
"I am in charge of all policy formulations by cabinet and these regulations were gazetted without being seen by either myself or cabinet," he said.
"They were published without due process and in contravention of the global political agrement [which set up the coalition] and constitution of Zimbabwe and are therefore null and void."
The new law will come as a huge blow to the efforts of Tendai Biti, a former opposition politician who is now finance minister in the coalition government, to persuade foreign investors to pour money into the country to rebuild its shattered economy.
The move dates back to an indigenisation bill passed by the previous parliament, in which President Robert Mugabe's Zanu-PF party had a majority, before the violence-wracked election of 2008 in which the MDC won control of the legislature.
The law had been on hold until supplementary regulations were drawn up by the government, which quietly published them in an official gazette at the end of last week, with no formal announcement.
Indigenous Zimbabweans are defined as anyone who before independence in April 1980 was "disadvantaged by unfair discrimination on the grounds of his or her race and any descendant of such person". As such white Zimbabweans are excluded, and the position of Zimbabwean Asians, some of whose families have been in the country for generations, is open to question.
Whites are barred from some sectors altogether, including agriculture, retail and transport, as well as barbers, bakeries and beauty parlours.
Harare's business community was left in shock by the development. A banker who did not want his name or his bank identified said: "This is absolute madness."
A fuel trader, who asked not to be identified, said: "These regulations are theft of any business in whites have an interest, it's just like the farms."
Nick Cobban, a spokesman for Rio Tinto, described the regulations as "draconian and unworkable".
The company operates a small diamond mine in Zimbabwe which it considers has potential for expansion, but it has not taken a decision to do so "partly because of the uncertainty".
Some sectors could win an exception from the 51 per cent requirement, he pointed out, and the Chamber of Mines was negotiating on the issue.
"We remain encouraged by the fact that there still is dialogue," he said. But he added: "This will have to be eventually agreed by the indigenisation ministry though."
Alistair Smith, director of media relations for Barclays Group, said the firm was "considering the implications".
Under the rules avoiding black majority shareholdings will be a criminal offence and while companies have five years to comply, the effects will be felt long before then.
Daniel Ndlela, Zimbabwe's most eminent regional economist said: "There will be no foreign investment into Zimbabwe. Why would anyone come into Zimbabwe with $100 and be left with $49? It sends a very wrong message and those who might have invested in Zimbabwe will now never come."
Another economist, John Robertson, said many local industries will go bankrupt. "They will have to bring in people who know nothing about their businesses which will put off investors and demotivate company owners."
It is not clear exactly how the 51 per cent stake is supposed to be acquired. But under neighbouring South Africa's black empowerment programme, banks have leant large sums to black businesses to enable them to buy shares in major companies, often at a discount.
Zimbabwe's unity government is already deeply troubled, with the MDC accusing Zanu-PF of not keeping to the political agreement that set it up, and the regulations amount to a political slap in the face for the former opposition.
Mr Biti could not be reached for comment. But an MDC insider said: "It is unlikely that Biti knew about this as he is desperate for investment into Zimbabwe."
Saviour Kasukuwere, the Zanu-PF minister of Youth Development, Indigenisation and Empowerment, who is responsible for the regulations, said: "There were wide consultations with stakeholders ahead of publication of these regulations and there is flexibility available.
"We are not trying to damage the investment climate in Zimbabwe."
I think the whites need to take back their country of “Rhodesia”, formerly the crown jewel & breadbasket of Africa....before the socialist commie black pig Mugabe & his fellow thugs raped, pillaged & destroyed the prolific farms owned & managed by whites, and then plunging the country into bankruptcy, corruption & widespread violence.
Colonial Africa & white controlled Rhodesia & South Africa all used to be a beautiful place to live or visit. No longer however with black corrupt gubmints & thug rulers.
“I would lock the door and walk away.”
You and I would have walked away a long time ago. Then let them make a shambles of it, and we can stroll back in.
Great news from our clear thinking sub-Saharan brethren, who, before colonization, had not yet come to possess whatever it takes to discover the use of writen language, the plow, or the wheel.
They should do well.
I’m surprised they didn’t all leave years ago. I saw this coming from miles away.
Time for Wyatt’s Torch, if you ask me.
His father was the manager of a textile plant there back in the 60's & 70's and he worked there during break from school. He said that the workers only had to operate 1 machine at a rate of about $1 hr. When told that they could make an extra $1 hr for every machine they took on they all said no.
Imagine the crippling poverty and being given the chance to dig your way out just a little bit. Would you say no just because it would involve a little more work?
Decolonialization has really worked out well for Africa, hasn’t it? Between those monkeys Mugabe and Zuma, they’ll be lucky if there’s anyone left alive.
Agriculture, retail, transport: there's the economic infrastructure right there.
How many years before this place descends into total chaos?
They are citizens of the country and they probilty felt it couldnt get worse. But I agree, anyone with any brains would have left that country as soon as it changed their name.
the shame is Rhodesia was a bread basket of Africa when the whites ran it.
Coming to America soon.
First they came for the communists, and I did not speak out—because I was not a communist;
Then they came for the trade unionists, and I did not speak out—because I was not a trade unionist;
Then they came for the Jews, and I did not speak out—because I was not a Jew;
Then they came for me—and there was no one left to speak out for me.
--Pastor Martin Niemöller
But your answer works, too!
Zimbabwe, Mugabe and his henchmen..
Hellbent on total destruction of the nation, once rich and prosperous, just to show whitey his place.
and the wind whispered .. “Ceaucescu”
Don’t worry. In 10 years, Bono and all the rest of the Bleeding Hearts Club will put together a benefit concert and try to guilt whites into tossing more money into the yawning chasm that is Africa.
Africa is Africa because of Africans. Africa won’t change until Africans change. No matter how much $$ you toss at it.
Someone shoot Mugabe now. Thanks.
/shrugs
:)
Such things often happen when a people are conquered. As the Gaul said to the Roman, “Woe to the conquered!”
I never send money to causes like that .
I never goes to the people and just helps keep the tyrants in power.
After the earthquake in Haiti I packed 50 small goody bags and sent them to the Veterans Hospital instead.
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