New Zimbabwe law: white-owned businesses to turn over control to Zimbabwe Blacks
Posted March 11th, 2008 by Anonymous
AUSTRALIAN miners in Zimbabwe such as Rio
Tinto and Aquarius Platinum face having to give up 51 per cent of their projects

HARARE, Zimbabwe - President Robert Mugabe has signed a new law requiring
foreign-and white-owned businesses in Zimbabwe to hand over 51 per cent control
of their operations to blacks.

The new law is part of Mugabe's election campaign strategy of what he calls
"economic empowerment."

The strategy also includes plans to distribute tractors, generators, gasoline
and cattle to black farmers who have resettled on white-owned land seized by the
government since 2000.

The moves comes three weeks before Zimbabweans vote in crucial presidential,
parliamentary and local council elections.

Mugabe, 84, is running against former finance minister and ruling party loyalist
Simba Makoni, 57, and opposition leader Morgan Tsvangirai, 55.

The March 29 vote takes place amid an economic meltdown - including a shrinking
economy, rocketing inflation, shortages of most basic goods and collapsing
public services - in a country once known as Africa's breadbasket.

Since the government began ordering the seizure of white-owned farms in 2000,
production of food and agricultural exports has slumped drastically. Zimbabwe
has the world's highest official rate of inflation: 100,500 per cent.

One-third of the country's 12 million people received emergency food aid in
January, according to UN agencies.

The UN Food and Agriculture Organization predicted shortfalls in local harvests
in coming weeks and said just 10 per cent of fertilizer needed in the last
planting season is available to farmers.

Since December, the Central Bank has spent at least $43 million to import corn,
Zimbabwe's staple food, from neighbouring countries, bank Gov. Gideon Gono said
Saturday.

The state-owned Sunday Mail said the new government program will put Zimbabwe
"back at work" with state-of-the-art generators, buses, tractors, 300 buses,
motorcycles and some 3,000 cattle.

"This equipment and implements now form a critical mass that should be deployed
effectively so as to meaningfully uplift productivity levels," the newspaper
quoted Mugabe as saying at a ceremony in Harare on Saturday.

No details about the cost of the equipment - funded by the state central bank,
much of it in scarce hard currency - was provided. In the past, similarly free
equipment mainly has gone to supporters of the ruling party.

Mugabe blames the crisis on economic sanctions imposed by Britain, Zimbabwe's
former colonial power, and its allies, to protest his land reforms.

"This hate program by Britain and her fellow racists imposed unjustified
sanctions on Zimbabwe in futile attempts to frighten us off our land," he said.
"They should remember we are not that easily scared away," he said.

The Economic Empowerment Act requires "indigenous Zimbabweans" to hold a minimum
51 per cent stake in every business and public company, and to have a
controlling stake in every investment or company merger.

source The Canadian Press. This article is typical of the way Zimbabe is reported in the west.

 http://www.theaustralian.news.com.au/story/0,25197,23352812-643,00.html

March 11, 2008 AUSTRALIAN miners in Zimbabwe such as Rio
Tinto and Aquarius Platinum face having to give up 51 per cent of their projects
after President Robert Mugabe reportedly went ahead with plans for legislation
requiring foreign and white-owned mines and businesses to be 51 per cent owned
by black Zimbabweans.
The move means a $US270 million ($291.4 million) expansion of Rio Tinto's
relatively small Murowa diamond mine could be permanently on hold, and there is
speculation that the Anglo-Australian miner could sell out completely.
Rio declined to comment yesterday.
Shares in Aquarius, which has 50 per cent stake in the Mimosa platinum mine in
Zimbabwe, dropped 8 per cent, reversing recent strong gains from rising platinum
prices.
Aquarius, which is listed also in London and Johannesburg, is partnered at
Mimosa by South African platinum giant Impala.
Miners last year rated Zimbabwe as the worst country in which to do business,
according to Canadian researchers the Fraser Institute.

President Robert Mugabe enjoys widespread popularity in Zimabwe and Black Africa although you would never believe this was a fact by reading articles even from the "left" that are published in the west.
In Africa He is often contrasted by anti neo-colonialists to that Idol of the West Mandela who changed no property relations in South Africa I return for a black vote.
A lot of the current economic problems are the result of illegal sanctions imposed by imperialism and most recently by late rains.

The government supporting newspaper reports:

 http://www.herald.co.zw/inside.aspx?sectid=31849&cat=1