Kasukuwere walks out of Indigenisation meeting

Kasukuwere, who is pressing ahead with plans to force foreign-owned businesses to cede controlling stake to indigenous Zimbabweans despite warnings that this could scare away investors, walked out of the meeting after a participant had described the empowerment rules as economic apartheid I thought you had invited me to meet people of sober senses, not realising that the meeting was meant to insult me, Kasukuwere told Harare executive David Harrison, who was chairing the meeting.

For your own information we are in-charge of this government and there is no going back in as far as the implementation of this law is concerned. At this moment to hell with your meeting and invite me when you have mobilised sober people, said Kasukuwere, who was speaking with Harrison moments after walking out of the meeting. Speaking to The Zimbabwean on Sunday, Harrison said business leaders had invited Kasukuwere to the meeting so he could clarify issues regarding the empowerment laws and to alert him that several foreign investors were considering taking their money elsewhere because they were unsure about the safety of their investments in Zimbabwe.

Harrison said: The reason why we are conducting such meetings with the responsible minister is that a lot of international investors have approached us and told us that they are withdrawing their business interests in Zimbabwe. As Zimbabweans we feel this is an unhealthy development as it is coming at a time we are in dire need of direct foreign investment for the recovery of the economy that has began to show signs of revival. Under Kasukuweres empowerment regulations foreign-owned companies by end of this month submit proposals to the indigenisation ministry on how they plan to bring on board locals to take 51 percent of their businesses.

The rules have been a source of controversy and besides rattling foreign investors who analysts say may continue to stay away from the country, the rules have divided the unity government along party lines with President Robert Mugabes Zanu (PF) party pushing for implementation of the laws. The coalition government of Prime Minister Morgan Tsvangirai and Mugabe has been struggling to win donor support from the West, who want the government to implement irreversible economic and political reforms. Critics fear Mugabes Zanu (PF) wants to press ahead with transferring majority ownership of foreign-owned companies as part of a drive to reward party loyalists with thriving businesses. Analysts say the empowerment programme could see Zimbabwe being shunned by investors again who fear a repeat of the land seizures, at a time the new government is out to attract to grow an economy that was in decline for ten years.