THE SMART NEWS SOURCE | Feb 10 2010 05:16 | LAST UPDATED Feb 10 2010 05:16 |
|
Amid growing debate over the role of foreign multinationals in Zimbabwe, none of the large South African corporations in the country is considering withdrawing. Old Mutual would not say whether it would hold on to a large investment in Zimpapers, the company that owns The Herald newspaper, a notoriously one-sided Zanu-PF mouthpiece. Old Mutual is the second-largest shareholder in the newspaper group, after a government-controlled trust. Old Mutual had not responded to questions sent by the Mail & Guardian at the time of going to press. South African banks have provided financial support to ZimÂbabwean agriculture, most of which is now owned by Zanu-PF bigwigs and other beneficiaries of land grabs since 2000. According to treasury statistics detailing financial institutions' support for this year's farming season, Nedbank's Zimbabwe subsidiary, MBCA Bank, channelled lines of credit worth US$40-million to the Zimbabwe government for the purchase of farm inputs. Some of that lending also went towards funding the purchase of tobacco. Stanbic, Standard Bank's subsidiary, provided US$18-million to support cotton merchants this year. It is not possible to find out how much of this funding reached resettled farmers. Nedbank did not immediately respond to queries sent to it. This week banks in Zimbabwe said they would no longer lend to farmers sitting on seized land until they have legal title to the land. In response Mugabe said he would "speak to them" so that they accept as security for loans "offer letters", which allow holders to forcibly take over farms. Few foreign firms look ready to leave Zimbabwe. And, given the steady stream of South African business delegations arriving in Zimbabwe in recent weeks, more South African money is heading that way. SABMiller has put an additional $16-million into Delta Beverages to expand its canning factory and meet growing beer demand. Patrice Motsepe's African Rainbow Minerals is investing $300-million in new coal and platinum projects in Zimbabwe, according to Dan Simelane, the company's chief executive for exploration. Motsepe led a delegation of South African businessmen that met Mugabe in Harare in April. That meeting was arranged by Business Unity South Africa, which encourages its members, some of the largest South African companies, to invest in Zimbabwe. Nonkululeko Nyembezi-Heita, of ArcelorMittal South Africa, confirmed that Africa's largest steelmaker is one of six foreign bidders for Zimbabwe's state steel company Ziscosteel, which was run into the ground by a succession of scandals involving top government officials. Mzi Khumalo's Metallon Gold is seeking funding to restore its Zimbabwe operation. Its five mines accounted for more than half of the country's total gold output before they were shut down last year after the reserve bank failed to pay for gold deliveries worth $20-million from the company. At the height of the economic crisis in Zimbabwe, large retailers such as Pick n Pay and Edcon wrote off their Zimbabwean investments. But the retail chains are now sinking more money into the country. Shoprite plans to buy into OK Zimbabwe, whereas Pick n Pay will maintain its 25% share of TM Supermarkets. Pep Stores also has a presence in Zimbabwe, through the Power Sales clothing chain. Tongaat Hewlett is investing R145-million to restore its sugar estates in the south and east of the country. The estates have long been a centre of controversy, with the Zimbabwe government seeking to resettle thousands of small-scale farmers on the company's Hippo Valley estates. Zimbabwean rights groups have welcomed the international pressure that forced Nestlé to stop buying milk from a dairy farm run by Grace Mugabe. Yet, few would publicly back a campaign to pressure other multinational companies to withdraw from Zimbabwe. Mugabe would use any such pressure to justify his repeated claims that Western sanctions are to blame for Zimbabwe's economic collapse. Although he has managed to convince his regional peers that Western measures against himself and his associates are the cause of the economic crisis, a senior United States diplomat in Harare this week restated the Western position that action against Mugabe's rule has been specifically targeted. Trade between Zimbabwe and the US has in fact doubled since the measures came into effect in 2003, according to James Garry, second secretary for economic affairs at the US embassy in Harare. Legislation bars US representatives in international financial institutions from authorising lending to Zimbabwe. But Garry insists these laws have never been used. "While US sanctions may have harmed the business interests of some individuals, there is no evidence that they have had any negative macroeconomic impact on Zimbabwe," said Garry. TOPICS IN THIS ARTICLE
Comments
Ah, now who is sitting on the moral high ground here? This does however prove that Bob Mugabe and most zimbabweans have a couple of screws missing, because they created their own sewage and are now lying in it, with no help from the supposedly white surpressors. This is a purely black created mess, if I may be so forward as to use the goverment's race card...
white trash on October 10, 2009, 4:44 pm
So whilst 3-4 Million Zims live as starving refugees for illegal low paid work and prostitution in SA, SA buys up their country on the cheap.
Does anybody in SA know what the textbook definition of Neo-Colonialism is? http://www.answers.com/topic/neocolonialism Or dont you think that that Black Africans can be Imperialists, annexing another country by economic means, rather like you dont think they can be racists. PS. Whilst SA buys up the country they helped violent thugs to ruin, the Evil Western Whities are still funding the medical and food provision to all the Aids orphans, and other poor Black peasants. Is this Mbeki's idea of an "African Renaissace" rather like his idea of "Quyiet Diplomacy".
Alisdair Budd on October 10, 2009, 11:38 pm
The jewel of Africa, Zimbabwe on the rise again but this time with increased participation of the natives.
Zim has the infrastructure, well educated and skilled perosns who have continued to stay relevant by migrating and taking up appointment in other countries duirng the trying period!
dread dread6 on October 11, 2009, 3:57 pm
Walters, since definately you are not going to be the one to invest in Zimbabwe, it might be wise to shut your big anglo mouth! What you think about Zimbabwe does not matter, because investors will still come to Zimbabwe. The world is not fooled by former colonialist/apartheid white people commentators. After kicking your butt, who in their right mind think you want Zimbabwe to succeed! Zimbabwe will succeed under it's own terms!!!
zodwa sibanda on October 12, 2009, 4:12 am
Go for it folks - but don't piss off Mr and Mrs. Mgabe or you will have all your assets frozen and by the way they will want to own 51% of your hard-won business. Not too sure how the poor will benefit but guts and glory may win out.
sue topham on October 12, 2009, 9:25 am
The land grab " has turned into " capitalist grab". SA companies are rushing in without marality -just greed. Again proving that greed has neither morals nor colour.
As for Nedbank you are pathetic.You chose the moral high ground in the ASA matter but you do business with Mugabe. You deserve everything the likes of Malema throws at you.You are a disgrace.
Donald Mathray on October 12, 2009, 10:57 am
Over and over the name-calling and abuse continues. Could people please try and spell! Secondly, are we just waiting for Bob to die? Is Mutasa in the wings? He keeps appearing in Oz as the Zanu-PF spokesman. He is a thoroughly discredited person. Film tonight on ABC news showing farm clearances. Bongo-bongo land.
Brian Edwards on October 12, 2009, 1:09 pm
I am in no way saying that the way the SA Big-guns are infiltrating Zim is right, but have we not seen the rich profit off the poor over and over and over again? If the Multi-corps had to leave Zim, what would that do to the people? Push them even further into the dark ages? It may not be the correct way to do business, but without them the corrupt inept leaders would have a monopoly in Zim with control in every facet of the country. At least this way there is some form of foreign interest, even if money is the driving factor. The big disadvantage is that the cash generated leaves Zim, when it needs to be used on the ground, for the people of the country.
Guy Brown on October 12, 2009, 3:00 pm
Brian
Don't be upset with the typos -if u can understnd th mesage its fne.Stp nit picking.
Donald Mathray on October 12, 2009, 4:22 pm
Donald, excellent comment regarding English language and understanding what has been written. Brian you are trying to anglocize everything...most words on the internet are not anglo english. So get over it or get out of this blog. The internet has changed the language game..It is you, Brian, who needs to get educated. The internet has it's own language. I'm so happy about that, because English is not my first language.
Remember also that Former President George Bush could not utter one single complete sentence in English! And who cares????
zodwa sibanda on October 13, 2009, 1:47 am
It is most encouraging that native South Africans are leading the investment drive in Zimbabwe. The reason why natives Africans remained poor was the fact that the brutal system of exclusion imposed by the settlers meant that they could only handle cash once. This unique occassion (hence the celebrations) was on pay then thereafter they had to part with their money - pay rent, buy clothes, pay fees, and so on and so forth to settler businesses. Effectively there was no money circulating among the native Africans.
A micro-example could be found on the farms where the settler would also operate a store from where the farm labourers sourced their supplies (effectively giving back their meagre earnings) and if they received a raise it would be taken 'back' when the poor labourer (without any options) goes shopping. ------------------- @ zodwa sibanda, you have me laughig with you line, "Remember also that Former President George Bush could not utter one single complete sentence in English! And who cares????" Worse still George Bush could not count the votes and had to ask the courts for assistance but ended merely doing it the western way - steal the grub. ------- It is good that mostly black South Africans are investing in Zimbabwe, a fellow African country. It has always been argued that the reason why natives Africans remained poor was the fact that the brutal system of exclusion imposed by the settlers meant that they could not come into contact with hard cash once. This unique occassion was on pay then thereafter they had to pay rent, buy clothes, pay fees, and so on and so forth from settler businesses. Effectively there was no money circulating among the native Africans. A perfect example could be found on the farms where the settler would also operate a store from where the farm labourers sourced their supplies (effectively giving back their meagre earnings) and if they received a raise it would be taken 'back' when the poor labourer (without any options) goes shopping.
dread dread6 on October 13, 2009, 1:09 pm
Only if you say so... Yesterday, "Retail group Shoprite yesterday announced it had decided not to engage in investment opportunities in Zimbabwe.
The group said due to the current socio-economic and political uncertainty in Zimbabwe, it had decided not to engage in further investment opportunities in that country in the short to medium term. The announcement followed media speculation that the Shoprite group was pursuing the purchase of OK Zimbabwe, it said." Why does anyone want to invest in Zimbabwe? The risk requires seriously high returns.
Marius de Kock on October 13, 2009, 4:34 pm
@dread... As opposed to now where NONE of the people have money and are using dollars, pounds, rand and pula? EFFECTIVELY there is NO money among the African people now! Of course when you have nothing to sell, but the family jewels, investors will ensure they get to eat largest slice of the pie.
Marius de Kock on October 13, 2009, 4:44 pm
South Africans never wasted their time fighting tribal wars like Mugabe so if their economy is doing well bless them they deserve it.Remember they did not bring in psuedo ecenomists like what happened in Zimbvabwe where a black minister of finance was puit in place for the elite to steal without disturbance...if it means colinising so be it coz they colinised themselves forsi and now they cant untangle it
somhlaba mthunzi on October 13, 2009, 7:15 pm
Marius de Koch, I appreciate your concern that most people in Zimbabwe many not have the "real" currencies like the dollar, Pound, rand etc But, this is what people fail to understand about Zimbabweans! ZImbabweans living abroad in the last 8 years have been sending $800 million dollars to Zimbabwe annual for their relatives to pay the bills. About One Billion rands flows into Zimbabwe every year. By any African standards these are large amounts.
The last 5 years, it is not the tourist who brought in the most money, but diaspora Zimbabweans. That in insense is what has kept the country moving at least and not dying. These funds ironically enough help support Mugabe's regime!!! Ohhhh...yes, simplicity is usually given to Zimbabwean issues, I dare suggest that these are more complicated than that. Of cause a good portion of the country suffered, but it was not a secret for most Zimbabweans who had a relative abroad or who lives in South Africa or Botswana or even Zambia. Zimbabwe will always survive!!!
zodwa sibanda on October 14, 2009, 3:01 am
@zodwa. You talk of Zimbabwe as an end destination for dollars, rands and pounds. The funds sent home for all those year were converted in Zim dollars. NGO's even had their incoming funds commandeered\raided by the Gono. The dollars collected by the government has been spent by the government... much of it going outside the country - imported vehicles, food, fuel and electricity. Remittances home dried up some time ago. Do you really want me to believe that the "diaspora's" contribution is enough to keep the country afloat? Zimbabwe will always survive.... It's the Zimbabweans I am worried about. The "new set-up" is not sustainable. Farming has been disincentivised. Zimbabwe is going to require long term food support. It's a simple question of maths. It used to be 6000 commercial farms supporting 12 million people. Each farm used to support 2000 people. The land invasions happened and continue to this day. None of the original farms still exist. The white farmers who are still there have already given up most of their land. There are people in the Zanu-PF who grabbed and cleaned out several farms. These farms are standing fallow. Grace Mugabe has four farms of which only the dairy farm is now productive producing a 6th of what it used to. Army and Police big wigs also grabbed farms. Brigadiers and Generals. They aren't farmers. Not even close. Then there were 70000 small scale farmers which got small parcels of land. Have a look using Google Earth. The plots are teensie. The yields achieved by the small scale folks has been PATHETIC to say the least. The original farms are standing empty and unproductive, or are now small scale subsistence farming. No bank will lend against the "offer letter" which has so muddied the waters. Expecting the small scale farmers to take up the slack of all the land which has been taken out the system is unrealistic. It's not that this is good or bad. It just is. The problem will not go away. A land audit is a good place to start and I read that the EC are offering to fund one, but as you can imagine the real beneficiaries aren't so keen. Having land in the people's hands is one thing.... but what happens if they aren't natural farmers. Becoming a farmer requires more than just growing up on a farm. The reality is that the "white Zimbabwean farmer" who they've been beating on had all the skills. Some of those farmers might help you yet if you promised to stop being so mean to them, but that is not the way. The Nongqawuse moment hasn't occured yet. When the last of the commercial farmers are gone.... when all the land is in the hands of the "people".... and you find that the 70000 are producing enough for.. themselves.. their family.... times two... times four... are feeding maybe a million people out of 10 million people. Do you even know what longpork is?
Marius de Kock on October 14, 2009, 10:17 am
Marius de Koch, surprising enough diaspora Zimbabwean foreign currency was almost equivalent to what Zimbabwe used to earn selling Tobbacco, mining and Tourism. It made up a big difference in Zimbabwe. Is it sustainable?
Zimbabwean white farming was always based on having a good relationship with the gov't. White Zimbabwean farmers enjoyed more support in Zimbabwe than any farmer in Africa. White Zimbabwean farmers who went to Botswana, Mozambique and Zambia and found it very had to farm because of lack of support. I read their accounts and most, for the first time acknowledged that labor in Zimbabwe was cheaper. White Zimbabwean farmers do better when they work with the gov't. Political involvement doomed white farmers in Zimbabwe and now they will always be a political liability!
zodwa sibanda on October 15, 2009, 2:53 am
You go girl!!!!!!!!!!!!!!!!1111
pingpong afrijap on October 15, 2009, 8:31 am
@zodwa... Do you know who Nongqawuse was? Do you know what longpork is?
Marius de Kock on October 15, 2009, 4:13 pm
@de Koch, know what? in relationship to what?
My point is that it so easy to assume that what white Zimbabweans did in Zimbabwe was to save the country. They had their own interests and those interests sometimes clashed with the interests of the majority. Zimbabwe is a very different country today! Most wealth moved to the black majority. The overwhelming professional class today in Zimbabwe is Black. The white population in Zimbabwe is estimated to be only 50,000 (.o6%) and their impact is increasing less and less. We need to be careful! There has been a tendency in white minority communities to over state their impact on the Zimbabwean economy!
zodwa sibanda on October 16, 2009, 3:39 am
Hmmmm! We have seen what has happened in Zim since the minority of whites in all fields, not just those chucked off their land, have left. Taking over someone elses hard work does not guarantee success, now does it. Africa must wake up and realise the world is moving on and if they want to be part of it they have to join in without the excuses of "previously disadvantaged' colonisalism made them poor, and so on. Prior to Africa being 'discovered and colonised' what did actually take place in/on this continent? Zero! "Africanising" is not the answer.
America has its racial problems but has still built itself into a superpower with the help of a multitude of peoples from around the world. The Red Indian still sits on reservations and waits for the day the country will be returned to them. Is that a possibility??? The Palestinians sit in Gaza, breeding their numbers up or in Lebanon and elsewhere in refugee camps and will not accept that Israel has been returned to its rightful people - they live in hope and squalor, but do not contribute anything but death and disharmony. Funny old world - but change is inevitable as history shows us.
sue topham on October 17, 2009, 12:35 pm
Have we all forgotten the real people of Southern Africa are the Bushman, What rights and what say do they have in all the decisions of their land, They were the original tribe of SA with everyone coming from else where. We need common honesty to develop a fair and just society.
We realize that politicians are only init for their own good, lets find a better way.
T Barrett on October 17, 2009, 2:04 pm
click here to log in
M&G Online Comment Guidelines In Brief
Advertising Links
|
2,3-million titles to choose from.
iPod nano 16GB - Black, Was R2,499.00 Now R2,299.00! Save R200!
46 000 DVDs and Blu-Ray on sale now!
100s of new releases now in stock. Get the new Sade & Bon Jovi albums.
Widest toy range and unbeatable prices!
AdvertisementsAdvertising links |
|||||||||||||||||||||||||||||||






