The government of the Zimbabwe’s President Robert Mugabe still has the support of the country’s people, the information minister said on Saturday, dismissing predictions by the United States ambassador to Harare that regime change is imminent.
US Ambassador Christopher Dell told the Guardian newspaper this week that Mugabe’s government is likely to inflict regime change through mismanaging the economy.
He predicted Zimbabwe’s annual inflation rate — already the highest in the world at more than 4 500% — would reach 1,5-million percent by the end of the year.
”Things have reached a critical point. I believe the excitement will come in a matter of months, if not weeks. The Mugabe government is reaching end game, it is running out of options, he said.
”By carrying out disastrous economic policies, the Mugabe government is committing regime change upon itself,” said the ambassador, who is due to leave Harare next month for a new posting to Afghanistan.
Stronger position
Information Minister Sikhanyiso Ndlovu told state radio that Zimbabwe was in a much stronger position now politically and economically than ever before.
The government continues to enjoy the support of its people and is more than ready to defend itself against any illegal attempts to overthrow it, the radio quoted him as saying.
He chastised what he termed gullible Western media for repeating the US envoys comments without seeking the government’s side of the story.
The minister repeated Harare’s line that Zimbabwe’s hardships have been caused by sanctions imposed by the US, Britain and other Western countries.
Targeted sanctions, including a travel ban, an arms embargo and asset freezes have been imposed on Mugabe and his inner circle, but the government says critical financial aid and donor funds have also dried up.
”The US envoy can celebrate the misery and suffering of Zimbabweans brought about by his government through the imposition of self-serving illegal economic sanctions against the government but that does not translate into the failure of the government,” said Ndlovu.
The ministers comments come amid reports that a few businesses in Zimbabwe have temporarily closed shop to avoid selling stock for fast-devaluing Zimbabwe dollars that would not be able to buy replacements.
The Zimbabwe dollar, which officially trades at 15 000 to the greenback is reported to have slumped to around 400 000 to the dollar for large transactions on the black market.
Firms to cede 51% equity
Meanwhile, the Zimbabwean government on Friday published a Bill designed to ensure that a majority stake in all public-owned companies ends up in the hands of the indigenous black population.
The draft Indigenisation and Economic Empowerment Bill provides for the establishment of an empowerment fund which will offer assistance to the ”financing of share acquisitions” from the public-owned firms or assist in ”management buy-ins and buy-outs”.
”The government shall, through this act … endeavour to secure that at least 51% of the shares of every public-owned company and any other business shall be owned by indigenous Zimbabweans,” reads the Bill.
Some of the firms dually listed on the Zimbabwe Stock Exchange and London Securities Exchange firms include Old Mutual, NMB bank and Hwange.
Multinational firms that may be affected by the new policy include Barclays Bank, Bindura Nickel Corporation and mining giant Rio Zim.
The Bill defines indigenous Zimbabweans as any person who, before independence in 1980 was ”disadvantaged by unfair discrimination on the grounds of his or her race, and any descendant of such person, and includes any company, association, syndicate or partnership of which indigenous Zimbabweans form the majority of the members or hold the controlling interest”.
The Bill also states that no projected or proposed investment, shall be approved unless a controlling interest is reserved for indigenous Zimbabweans.
All government departments, statutory bodies will also be asked to procure 51% of their goods and services from businesses in which controlling interest is held by indigenous Zimbabweans.
Last year, many of Zimbabwe’s platinum, diamond and other mineral mines warned that they would be forced to close if Mugabe’s government takes a majority stake in the companies.
The Chamber of Mines, representing 200 mining houses in Zimbabwe, said proposed amendments to the Minerals and Mines Act would effectively kill off investment needed to keep the mines open. – Sapa-AFP, Sapa-DPA