THE SMART NEWS SOURCE | Feb 10 2010 02:40 | LAST UPDATED Feb 10 2010 02:40 |
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Zimbabwe plans a swift transfer of ownership of foreign companies to locals, forcing foreigners to sell 51% of their shares to locals within 60 days of publication of a set of new empowerment regulations. According to a confidential draft obtained by the M&G on Thursday, the government will target foreign companies valued at $500 000 and above. The campanies will be forced to transfer ownership to black “indigenous” investors almost immediately after publication of the regulations. The draft reveals Zimbabwe plans a rapid transfer, and not the gradual approach foreign investors wanted. The regulations will be a fresh knock to investors already spooked by the worsening fragility of the country’s coalition government. All foreign businesses that, within 60 days of the regulations being made public, “fail to enter into a transaction that results in fifty-one per centum or a controlling interest, as the case maybe, being held by indigenous Zimbabweans,” would have to submit to the empowerment minister a report on how they intend to transfer ownership. Ownership must pass to the new majority shareholders within a month of an agreement being reached, or the minister would enforce mergers. A senior government official said the regulations would be published “within weeks”. Foreign investors in Zimbabwe had sought a measured approach to empowerment, saying forcing them to hurriedly sell majority interests to locals would end the country’s efforts to recover from ruin. The formation of the unity government had brought hope Zimbabwe would temper its tough empowerment laws. President Robert Mugabe has suggested at meetings with major foreign investors that there would be no land-grab style takeovers of foreign companies. There is no indication in the regulations as to how targeted companies will be valued. This may make it easy for politically-connected businessmen to force themselves on foreign assets. TOPICS IN THIS ARTICLE
Comments
Facts and stuff like that on November 6, 2009, 9:54 am
Alootin' Continua.... Nothing to get new investors to come to your country like taking away half of what they bring as they climb off the plane. Any bets that the "shares" in these firms end up in the hands of the Zanu-PF bigwigs and 100% genuine replacement war vets? Considering that the South African companies in Zimbabwe are essential for keeping the country afloat it seems Zimbabwe has taken to shooting itself in the foot with a machinegun. Will the "Nongqawuse moment" ever come?
Marius de Kock on November 6, 2009, 10:04 am
@Facts and stuff like that on November 6, 2009, 9:54 am
Yes, I guess you could call bringing a prosperous nation down to its knees and its people to starvation "development". Interesting definition though....
Blabber Mouth on November 6, 2009, 12:06 pm
And Africans wonder why the world thinks so lowly of them. Fukc up your country even further Zims.....u can always come to South Africa like beggars and pollute us with your problems when u again find yourselves and your children without food. Africans live in a world without accountability and consequences it seems.
Khalsa Singh on November 6, 2009, 12:30 pm
Expecting an influx of Zimbabweans into South Africa. Expecting the Chinese to buy Zimbabwe up for pocket change. As well as the nation to starve, no food, no stores and no international aid.
Cant wait for Mugabes book: "An idiots guide on how to **** up an African country"
Sinudeity @gmail.com on November 6, 2009, 12:33 pm
The same old story…. In a few weeks these Africans will ask for money and aid again – why – they only plant 3 “mielies” and now it’s a big draught or the rain have swept away the 3 “mielies”. GIVE THEM LAND! PLEASE STOP GIVING AID and MONEY to African Countries – the people of these African Countries can ask their Leaders like MUGABE to give them the needed food and housing – why not – he made all these decisions – he should then also help them in their hour of need… GRACE can give all her GUCCI bags and DIAMENTS back and start using her old transport …. Her donkey-car …
Sipho Hu on November 6, 2009, 12:55 pm
From the bread basket of africa to the basket case .....
Rape and pillage the people who invest in and grow your economy. These people are seriously mentally challenged
PINKO PALLINO on November 6, 2009, 1:17 pm
Everyone calm down. MDC has a majority in parliament - it won't go through, I doubt even Bob would sign it through as Zanu has already abandoned the previous mining bill.
This doc was drawn up by some little department called the Youth and Empowerment department - just think of this as the equivalent of Julius Malema and the youth league.
Gary Howes on November 6, 2009, 1:33 pm
The idiot's guide to fast track the Zimbabwe ruins. It's quite amusing and amazing to note, in their infinite wisdom, they have not even considered or given attention as to how the companies will be valued. They have probably applied even less consideration as to how they intend paying for their shares.
Maybe Gono will come up with a brilliant idea:- like re-instating the worthless Zim dollar for 4 weeks so that the locals can use them to buy the shares. Let the games begin followed by the rapid road to abject poverty and starvation. It's quite obvious that Mugabe and his cronies have killed of their cash cows. Now it's time for them to tap into some new stock.
Les Wil on November 6, 2009, 1:36 pm
Khalsa Singh, the last time I checked South Africa was an African country in Africa. South Africa has BEE so let Zimbabwe decide how it wants to run it's economy. We had loads of South Africans taking all state school boarding places in Zimbabwe in the 80's and 90's at the expense of Zimbabweans so stuff your wining about Zimbabweans coming to SA.
Zimbaweans are building the world cup infrastructure while you lazy mourners and whingers whinge about this or that. Get off your entitlement horse after all you are also a beneficiary of immigration. Your parents couldn't make it in India and just like the Zimbabweans are doing took the trip to SA so stop complaining. Zimbabwe is setting the standard for all African countries to follow if they are to succeed. The economy is down already how far can it fall. This is the time to make radical decisions like this and then start rebuilding from there. I like the pragmatism being displayed here. It's a long road and Zimbabweans are prepared to travel it with the right policies for their benefit. This is what we need to avoid being held at ransom again by these selfish Europeans and Americans in the future.
Fungayi Dzvinyangoma on November 6, 2009, 2:12 pm
Like the story says, this is a draft document which was leaked to the media. In all seriousness, can people start wailing every time a draft is leaked? Yes it might be cause for concern but to suddenly condemn Zimbabwe to the rubbish heap of history is taking things a bit too far. Unfortunately this kind of knee-kerk reaction is exactly what the regime enjoys because it nuddies up the waters and whilst everyone is screaming at each other they really will steal the country and sell it off to the Chinese. I only hope the opposition has caught on to this and cooler heads will prevail, storming out of the room never solved an argument, it just makes it that much harder to get back in the fight.
ricky marima on November 6, 2009, 2:37 pm
Dear Fungayi Dzvinyangoma,
Zimbabwe is a dressed up Somalia, with the ZANU PF Youth Militia openly carrying guns in some parts of Mashonaland. And have you realised what you said and how stupid you look to anyone who actually pays attention to what you post? I Quote: "Zimbabwe is setting the standard for all African countries to follow if they are to succeed. The economy is down already how far can it fall. " So, the standard of African nations is an economy that cant drop any further? Ha, ha, ha, ha, ha, ha, ha, ha, ha, ha, ha.
Alisdair Budd on November 6, 2009, 2:53 pm
I have always maintained my stance and today it is being reinforced. The redistribution of resources and wealth in Zimbabwe always gets startling and undeserved attention from mostly white South Africans. Assuming that the route followed by Zim is a slippery downhill to catastrophe, then what about the South African way, that of doing things in a methodical and consultative manner? This also receives the middle finger from the same white South Africans ie Land Reform, EE and BEE. This draws me to a very obvious conclusion that most whites in South Africa are embittered and frustrated because of the power gains that are taking place in favour of the indigenous people. If that is the case (of which it looks like it is), then I would like to volunteer my craftsmanship in reincarnating a few dromedaries to make their repatriation as poetic as it can be.
Ngoako Modiba on November 6, 2009, 2:54 pm
"Zimbabwe is setting the standard for all African countries to follow if they are to succeed. The economy is down already how far can it fall." Zimbabwe is setting the standard of what not to do to your country. The economy still has a way to fall and we're about to see it happen. Only 12% of the funds budgeted for the current agricultural season was collected and disbursed by the end of September. Agricultural output was always the backbone of the Zimbabwean economy and with the expected drop in output things will still get a lot worse. If moving from a money economy to a barter one is progress I obviously don't know what the word "progress" means. Does the cellphone farmer know how many tomatoes it is for a ride in the underground tube train? And for a trip from the countryside to the city?
Marius de Kock on November 6, 2009, 3:14 pm
@ Fungayi - well dont u have a few chips on your refugee shoulders. Guess u didnt stop to see how far your country was down the toilet when u were running out on your country to the feet off to your Anglo-Saxon masters in the UK. So, while Zimbabwe is setting the standard for Africa (and if u believe this, then u really insult the millions of patriotic Africans out there) refugee trash from Zim, who supported Mugabe now come to parasitise off other countries. SA schooling system in the 80s and 90s was top notch, so I doubt South Africans students went to Zim, which has no legacy or reputation for academic excellence. Zimbabwes contribution is that of being the dunce of Africa and the laughing stock of the world.
Khalsa Singh on November 6, 2009, 3:16 pm
@Facts and stuff like that - you write
'Africa needs to learn from the development in Zim.I have this strange feeling that Zim has taken the turn and it years ahead of a lot of African countries .....' This is possibly the single most idiotic statement I have read on any of these threads ever. How any person with a modicum of intelligence can see the Zimbabwean leadership as being role models for Africa is beyond comprehension. The agriculture of the country has been devastated by the inept and corrupt way in which land re-distribution has been handled Thuggery, intimidation and violence are not a lesson for Africa to follow. Shame on you for even suggesting that this should be appropriate for the rest of the continent.
Klasie Koek on November 6, 2009, 3:28 pm
Who is this Khalsa Singh who is insulting the sleeping lions of Zim. The Old used to say let sleeping dogs lie. You say Zim has no legacy or reputation for academic excellence- it just shows how shallow u are. Who are the best Engineers, Doctors, Teachers, Nurses, Pilots etc in Africa especially South of the Sahara? Having a bad leader like Mugabe does not take away the fact that Zimbabweans have a legacy and reputation of academic excellence-give credit where its due. You can never match the standard of education and type of Gradutaes churned out in Zim up to around 2007. For your info I am a Civil Engineer with an MSc and work in Zim and u cannot say that is not an academic excellence. In our MSc Class at Univeristy of Zimbabwe in 2000 we were 18 students with 12 being Zimbabweans and 6 from the region do your Maths if you can and tell the percentage. Mugabe might have destroyed Zim now but he did a good job on Education.
Kurauone Zvaramba on November 6, 2009, 4:00 pm
@ Zvaramba - no doubt that there are a few quality people in Zim...like any other country in the world. But if u talk of academic excellence, then please give me appropriate examples. South Africa has 9 of the top 10 universities in Africa. We have produced Scientific Nobel laureates (Sydney Brenner, etc), world's first heart transplant, the great Jan Smuts pioneered the Holism concept and drafted the UN Charter, Stellenbosch university is the only university in the world with a satellite program with NASA, we have perfected FT coal to liquid fuel technology, and our farmers are the most productive in the world (yours are the worst).....should I go on?
It is South Africa that has led the way for Africa up until Nelson Mandela. Sure we are going down the toilet now, but u Zims should show a lot more respect for your masters from the South.
Khalsa Singh on November 6, 2009, 4:32 pm
Mail & guardian is at it again, propaganda, and more propaganda, we need facts not theories. If your paper is not selling well please don't sell your soul to the devil to score cheap shots. Get your facts right, we are tired of opinions being presented as facts.
Mikhael Gorbachev on November 6, 2009, 4:40 pm
Khalsa Singh you said, "SA schooling system in the 80s and 90s was top notch". My question to you is, if it was how did you fail to take advantage of it? You said thrash when you meant trash and I had to correct you. You said exclave instead of enclave and once again I had to correct you with my "inferior" Zim education.
Besides, it was top notch for whites not the majority blacks hence the high number of SA children attending school in Zimbabwe. A lot of Tswanas, Angolans and Mozambicans also attended school in Zimbabwe in the 80's and 90's so don't tell me about top notch education which was unavailable to the majority. To please you, there were also Indian South Africans attending school in Zimbabwe as well as Indian Tswanas. Zimbabweans are running the major banks in SA just look at the senior management pages of most of them to see for yourself. They are running engineering firms, architectural firms and teaching in schools. Maybe if they had started coming to teach there sooner you may have benefitted from their expertise and superior knowledge. Zimbabweans should own and control their economy, it does not matter what white folks think. It started with land now we are going to industry and commerce. Anyone dreaming of MDC having some kind of majority in parly should work up from their deep slumber. MDC has the same number of seats as Zanu PF in parly and MDC-M is most likely to vote with Zanu PF when it comes to empowerment issues. Zanu PF has the majority in the senate.
Fungayi Dzvinyangoma on November 6, 2009, 5:02 pm
@ Fungayi - I guess a refugee like yourself would best understand the word trash. If SA were to rightfully take over Equit. Guinea, it would become an EXCLAVE of SA....as it is outside of our borders. Enclave is wrong....The Vatican City is a type of enclave of Rome.....guess your Zim education is not what u think it is.......
All South Africans, were at some point immigrants Fungayi, but to be a South African, means u have to be born, bred and pay taxes in this country. Do UK assylum seekers like yourself pay any taxes to your Anglo-Saxon masters? Sure there are lots of Zim professionals working legally in RSA (thats great, Ive no problems with that),but you are competing with black South Africans who have an entitlement mentality that is handicapping them.Most black managers in SA are AA appointments and in my company we also have Zim middle managers and professionals cos they are much better workers than our local black compatriots....however, I would not go so far as to say Zims control anything in SA....all u control is the influx rate of illegal immigrants that cross our borders.
Khalsa Singh on November 6, 2009, 6:10 pm
So much for the inferiority of Zimbabwe's education system to SA's. By your own admission your admission there are a lot of black Zimbabwean professionals in SA. When speak of benefitting from AA I know even Indians benefit from this policy so please climb off your high horse.
I am actually a highly skilled migrant in the UK and not an asylum seeker as you assume. Just like my fellow Zimbos calling the shots in SA I am calling the shots in the UK due to our superior educational background. Zimbabweans are highly valued professionals and with that we will be able to run our fully indeginised economy once that's achieved.
Fungayi Dzvinyangoma on November 6, 2009, 7:28 pm
"Zimbabwe is setting the standard for all African countries to follow if they are to succeed" - succeed at WHAT? Failiure?
"I am actually a highly skilled migrant in the UK and not an asylum seeker as you assume." - Both VERY doubtfull. "Zimbabweans are highly valued professionals and with that we will be able to run our fully indeginised economy once that's achieved." - From the UK? It's easy to say "It's a long road and Zimbabweans are prepared to travel it with the right policies for their benefit." when YOU are not having to suffer with the average Zimbabwean. Do as I say, not as I do, right? I can see why you rabidly defend Mad Bob's policies. You are as morally corrupt as he is. "Zimbabweans should own and control their economy, it does not matter what white folks think." Once again, you differentiate between "Zimbabwean" and "white folk" which AGAIN lets me honestly point out that you are a horrible little racist. Can't you make an arguement without resorting to race? I bet you work for Northern Rock, don't ya? Or HBOS? I recognise your style there. ;-)
Jason Olivier on November 6, 2009, 8:45 pm
Jason the last time I checked Zimbabwe's indeginisation laws where meant to benefit blacks and mixed race people but mostly blacks as the majority who were previously disadvantaged by the system of white apartheid. I did not differentiate between white and black Zimbabweans because white Zimbabweans do not need empowerment and have shown an obvious unwillingness to share hence these laws. You are the one who differentiated between white folk and Zimbabweans because I just said ZImbabweans in my post. The only people complaining about indeginisation laws are white folk because they don't want to share the national cake with the rest. They want to stay on top of the pile where they got unfairly at the expense of other races. You will have noticed that the key word here is "share".
You can call me racist or whatever label you may imagine but I will stick with the facts. My entire family is in Zimbabwe so I do not have to be there to support noble efforts that benefit the majority. I can do it from here just like most of you selfish whites calling for sanctions and banning of diamond trade in the comfort of your SA, Oz, NZ or British mansions or apartments.
Fungayi Dzvinyangoma on November 6, 2009, 10:56 pm
@ Fungayi - u Zims are really arrogant for people who so spectacularly destroyed a once functional country.Pity your superior intelligence and education didnt help stop u destroying your own country.The black Zims that we employ on a professional capacity are here simply cos of the low quality of local blacks that SA has, and they are mostly AA appointments. SA Indians dont respect or require AA, and in most companies, there is a clear mandate that specifies the percentage of black African employees.
U really made me laugh when u said Zims were calling the shots in the UK...from what I hear, just getting thru passport control at Heathrow is considered a success for most Zims.In RSA, most Zims are illegal criminals who are contributing to the downfall of RSA.As for the futuristic Zim economy that u speak of (keep on dreaming).
Khalsa Singh on November 7, 2009, 1:17 am
"Jason the last time I checked Zimbabwe's indeginisation laws where meant to benefit blacks and mixed race people but mostly blacks as the majority who were previously disadvantaged by the system of white apartheid." - So by your definition, anyone who is "white" is not indiginous and therefore not entitled to equal treatment? And you don't see a problem with that?
"I did not differentiate between white and black Zimbabweans because white Zimbabweans do not need empowerment and have shown an obvious unwillingness to share hence these laws." - You just did. And again you do not see it.... "The only people complaining about indeginisation laws are white folk because they don't want to share the national cake with the rest" - Untrue. As you just said, 'indiginisation laws' are discriminatory to non-indiginous people. Which you have ALREADY stated above as being "non-white" Zimbabwean. Of COURSE they'd be upset about being discriminated against. You are going on and on and on and on about discrimination that ended nearly 30 years ago and you bleat about people who "have shown an obvious unwillingness to share hence these(discriminatory) laws." "I can do it from here just like most of you selfish whites calling for sanctions and banning of diamond trade in the comfort of your SA, Oz, NZ or British mansions or apartments." - So you are JUST like the 'selfish whites' then, eh? CLEARLY a WHOLE lot more than you realise, you horrible little racist. "You can call me racist or whatever label you may imagine but I will stick with the facts." - Clearly ONE of us is sticking with the facts and the OTHER is using imagination. ;-)
Jason Olivier on November 8, 2009, 2:45 pm
Stop the race thing…. It’s about Facts….
Zimbabwe (MUGABE) success YES or utter failure... 1980 – Roads to drive on = YES 1980 – Clean Water & Electricity = YES 1980 – Food – YES (exporting a lot) 2009 - Zimbabwe = No Roads, No clean Water, No Electricity, No FOOD… Waiting to happen to SA…
Sipho Hu on November 8, 2009, 3:31 pm
What a pointless arguement! I was educated in Zim, we did have good schools pre-Mugabe! Most of the teachers from those days are now in SA. If I hear the phrase 'previously disadvantaged' again, I will be sick! Africa was previously disadvantaged before the europeans etc., came here and it stayed that WAY mostly because the whites failed to get the tribal chiefs to accept that education, commercial farming and so on would benefit them. In SA the government eventually threw its hands up in frustration and so was born the 'seperate development' regime. And that didn't go down very well either - now did it! Instead of stealing what the europeans built - why not build your own, have your own ideas, invent things that may or may not benefit the world in general - but to sit with your hands out begging while lambasting the 'whites' is just sooo - 'African'. Please answer me this question which has bugged me for 40 years - how come you never developed a written language, where are the social artifacts to prove you had a culture once, even the bushmen left their rock art behind as evidence of themselves. But from the Nguni - nothing!
sue topham on November 17, 2009, 12:02 pm
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Africa needs to learn from the development in Zim.I have this strange feeling that Zim has taken the turn and it years ahead of a lot of African countries in terms of getting land and resources back to it's rightful indigenous owners.