Business
Zimbabwe: Gov’t takes over majority stake in foreign-owned mines
Kasukuwere’s statement “poses a real risk of creating anarchy in the industry” and his party in the power sharing coalition will take “corrective measures,” he said.
In his Thursday announcement, Kasukuwere said profits since September 25 from the government’s new controlling shareholdings were also regarded as “property of the state.” But he said companies that made a loss since then would have to cover losses from their side, and not draw from the “indigenized portion” held by the state to pay debt.
There was no immediate reaction from mining companies on the eve of the Easter holiday. Many Zimbabwean businesses shut down early for the four-day break.
Mining firms depend on foreign investment to maintain and replace aging equipment not financed by revenues from mineral exports already subject to royalties and tax.
Tsvangirai said Zimbabwe needed policies that created jobs for the millions of unemployed in the country.
“They want massive investment in the country and not a political campaign platform that will only benefit the elite at the expense of the majority,” he said.
Economist John Robertson said Kasukuwere’s announcement is likely to be difficult to enforce.
