Mugabe wants to grab all foreign business

Sunday Telegraph:

President Robert Mugabe of Zimbabwe plans to seize majority stakes in all the country's foreign-owned businesses in what economists warn could be a repeat of the regime's disastrous land reform policy.

Under legislation approved by the cabinet two weeks ago, all companies will be required to give up at least 51 per cent of their shares for allocation to economically disadvantaged, "indigenous" Zimbabweans.

There are signs that the government intends to use the laws to attack the commercial interests of countries such as Britain, the former colonial ruler, which Mugabe accuses of plotting to remove him from power. However, companies linked with friendly regimes, such as China and Malaysia, will be protected.

The hit list might include British banks such as Standard Chartered and Barclays. A minister told The Sunday Telegraph that the banks were seen as having "sabotaged" Mugabe's land reform programme by refusing to extend financial support to black farmers.

"The president made it clear, when cabinet approved the Bill to be tabled before parliament, that the time had come to empower our people.

"He said the indigenisation exercise must be undertaken in the same fashion as the land reform programme."

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Well, that has really worked out well for him--not. It appears that he is going to try another mass theft to prop up his ridiculous government. He certainly is not in a position to compensate these companies for the wealth he is trying to steal from them. He is also not giving anyone any incentive to invest in business in his country either.