Businesses urge Zim not to target foreign firms

A leading business group on Tuesday urged President Robert Mugabe not to seize Zimbabwe-based firms from Western countries in opposing the sanctions imposed on him and his party.

Last week Mugabe had made such a threat while addressing the annual congress of his Zanu-PF party.

Under existing economic empowerment and indigenisation laws, foreign-owned businesses have to be 51% owned by black Zimbabweans. Mugabe has warned that unless sanctions were removed he would aim to seize complete control over the firms.

“He (Mugabe) might have a point on sanctions, but a retaliatory approach will not work,” said Joseph Kanyekanye, head of the Confederation of Zimbabwe Industries, the country’s largest business group.

Engagement with the West was “critical”, as more foreign investment and access to capital from abroad were needed to bolster any recovery in Zimbabwe, Kanyekanye said.

“The economy must not suffer as a result of indigenisation,” he told reporters.

‘Smart sanctions’
In 2002, Western countries imposed so-called “smart sanctions” on Mugabe and some top party officials, which Zanu-PF blames for Zimbabwe’s deep economic woes.

Minister of Indigenisation and Empowerment Saviour Kasukuwere has argued that seizing Western-owned companies would not worsen the economy.

“Gone are the days when our resources are being exploited and nothing is coming to us,” Kasukuwere said. “If they [the West] continue with their sanctions, we will also give sanctions.”

The indigenisation laws have sparked fierce differences in the fragile coalition government, with Prime Minister Morgan Tsvangirai of the rival Movement for Democratic Change (MDC) opposing the laws. — Sapa-DPA

Advertisting

Salie-Hlophe accuses Goliath of lying and racism

In response to Goliath’s gross misconduct complaint, Salie-Hlophe says Goliath has ‘an unhealthy obsession with my marriage’

Treasury is still seeking SAA funds

The government has committed an additional R2-billion to the airline, but has yet to pay it out

‘There were no marks on his neck’, Neil Aggett inquest...

The trade unionist’s partner at the time he was detained at John Vorster Square says she now believes his death was not a suicide
Advertising

Press Releases

Boosting safety for cargo and drivers

The use of a telematics system for fleet vehicles has proved to be an important tool in helping to drive down costs and improve efficiency, says MiX Telematics Africa.

Silencing the guns and firearms amnesty

Silencing the guns and firearms amnesty

Gender-based violence is an affront to our humanity

Gender-based violence is an affront to our humanity

UK-Africa investment summit 2020: Think Africa Invest SA

UK-Africa investment summit 2020: Think Africa Invest SA

MTN unveils TikTok bundles

Customised MTN TikTok data bundles are available to all prepaid customers on *136*2#.

Marketers need to reinvent themselves

Marketing is an exciting discipline, offering the perfect fit for individuals who are equally interested in business, human dynamics and strategic thinking. But the...

Upskill yourself to land your dream job in 2020

If you received admission to an IIE Higher Certificate qualification, once you have graduated, you can articulate to an IIE Diploma and then IIE Bachelor's degree at IIE Rosebank College.

South Africans unsure of what to expect in 2020

Almost half (49%) of South Africans, 15 years and older, agree or strongly agree that they view 2020 with optimism.