In a fit of pique President Robert Mugabe has decided to nationalise the Swiss-based global food giant Nestle all because the company refused to buy milk from his Gushungo Dairy.
Mugabe and his wife Grace grabbed the lucrative dairy farm from some hapless commercial farmer, and have installed millions of dollars worth of state-of-the-art equipment allegedly funded by the Reserve Bank of Zimbabwe.
At one of his many birthday celebrations, he told his mostly jobless supporters, who predictably cheered wildly, that the company should get out of Zimbabwe.
He also threatened to nationalise one of the countrys largest investors Zimplats which is owned by Patrice Motsepe, a black South African businessman. Mugabe accused Zimplats of taking all the money to South Africa.
Thats why Ive told (indigenisation minister) Kasukuwere to deal with those mines. We have got to get companies to account, he said.
Its a pity this accountability does not extend to those mining companies under the control of Zanu (PF) via the army and the ZMDC particularly the diamond mines.
Finance Minister Tendai Biti, who has been desperately trying to bring about transparency and accountability in the mining sector, has now been accused of treason.
There have been conflicting reports from companies involved in mining the Chiadzwa diamond fields about how much they have earned and how much they have paid the government. The only way to settle this is to have an audit as with any company.
By what strange logic does this become a treasonable offence?
It has always been commercially risky to invest in Zimbabwe but Mugabes threats over the weekend will certainly have put paid to any fledgling business confidence that the MDC involvement in the government and minister Bitis firm hand on the ministry of finance might have encouraged.
In most countries investors are nurtured. Their life-giving contribution in the form of job creation and contribution to the overall economy is recognised and appreciated. In some countries they are even given tax breaks to make them feel wanted.
Stories of businessmen being forced to append their signatures to a Zanu (PF) document demanding the removal of targeted measures against Mugabe and his henchmen will have sent shock waves through any potential investors.
The Zimbabwean economy is littered with once-prosperous companies that have come under the control, by hook or by crook, of Zanu (PF). How sad that those cheering thugs seem unable to question why they are not all gainfully employed by these companies. That they are incapable of making the connection between Mugabes irresponsible statements and the reality of poverty and 90% unemployment over which he presides.
Post published in: Editor: Wilf Mbanga