Mugabe signs nationalisation law

Critics say move to give nationals majority control of businesses can hurt economy.

    Robert Mugabe in standing for
    re-election on March 29 [AFP]

    Mugabe's Zanu-PF party pushed the bill through parliament last September despite fierce resistance from the opposition Movement for Democratic Change (MDC).

     

    Empowerment claim


    The government says the bill is part of its drive to empower the country's poor majority, but the MDC complains that it will enrich a few powerful individuals while winning votes in the March 29 elections.

    The government has sought to allay business fears of a blanket seizure of companies by saying authorities would work with businesses to set timetables for foreign-owned firms to transfer shares to locals.

    Loans will be provided to Zimbabweans intending to acquire shares, start businesses or expand existing ventures.

    But analysts say the move could further harm an economy that has already suffered because of foreign investor flight and an inflation rate of more than 100,000 per cent.

    Multinational firms that could be affected by the new law include Barclays Bank, Bindura Nickel Corporation and the mining giant Rio Zim.

    SOURCE: Agencies


    YOU MIGHT ALSO LIKE

    Visualising every Saudi coalition air raid on Yemen

    Visualising every Saudi coalition air raid on Yemen

    Since March 2015, Saudi Arabia and a coalition of Arab states have launched more than 19,278 air raids across Yemen.

    Lost childhoods: Nigeria's fear of 'witchcraft' ruins young lives

    Lost childhoods: Nigeria's fear of 'witchcraft' ruins young lives

    Many Pentecostal churches in the Niger Delta offer to deliver people from witchcraft and possession - albeit for a fee.

    Why did Bush go to war in Iraq?

    Why did Bush go to war in Iraq?

    No, it wasn't because of WMDs, democracy or Iraqi oil. The real reason is much more sinister than that.