Zanu (PF) targets foreign firms

Mnangagwa, who was speaking in his rural home Chiwundura in Gweru, said that companies that where supportive of the targeted measures would be forced to give away 90 per cent of their shares and any money realized from running the companies would be used to fight the so-called sanctions.

“We are in the process of rounding up chief executive officers of all foreign companies operating here and we will ask them if they support sanctions or not. Those who will indicate that they do not support the elections will be asked to go live on national radio and tell the nation and the rest of the world that their company does not support sanctions,” said Mnangangwa.

The words of the feared Politiburo member are a kick in the teeth for the Minister of Economic Planning and Investment Promotion, Tapiwa Mashakada, who believes that luring investors to Zimbabwe is vital.

“It is important that we attract Foreign Direct Investment to augument our domestic resources,” he said last week.

When contacted for comment Mashakada said that he could not comment on the utterances of Mnangagwa.

Documents in possession of The Zimbabwean also indicate that 100 companies which allegedly scaled down operations “due to political reasons” have been identified for urgent seizure and cession to “indigenous “people. However, despite an earlier indication that only those companies owned by Britons and Americans would be targeted, the list also includes companies owned by some Asians.

There are over 500 foreign companies operating in the country. Analysts and politicians have warned that the move will reverse the economical gains of the inclusive government and scare way the much needed investment in the country.

Before we go anywhere , we should analyze the way the government has been previously running some of its parastatals like ZUPCO, Cold Storage Company, Grain Marketing Board and Air Zimbabwe just to mention but a few. All these companies have collapsed and there is no way government will successfully run these companies which they want to seize,” said Holiday Mwamuka, an economist with the National University of Science and Technology (NUST).

Mwamuka said instead of interfering in the running of private companies under the cover of sanctions the government should speed up the privatization of all parastatals as well as creating an economic environment that helps to improve the country’s economic performance.

The MDC-T deputy national spokesperson Tabitha Khumalo stressed that her party did not support the intended move to seize foreign companies.

“Zanu (PF) has got a serious problem. They do not know where to draw a line between a political party’s position and a government position. The intended move by Zanu (PF) is just their wishful thinking while the fact of the matter is that the inclusive government has not discussed let alone agreed to such rubbish,” said Khumalo who is also an MDC -T representative in the Joint Monitoring and Implementation Committee (JOMIC).

Khumalo described the Zanu (PF)’S latest move as a desperate campaign strategy, ahead of a possible election this year.