Ownership Changes

I noticed on Ceefax last night that a very significant news story leaked out about Zimbabwe. Naturally the serious situation in Burma is now receiving the most attention from the news.

It seems that Zanu have passed a law requiring all businesses to have a controlling 51% shareholding by a black Zimbabwean. In practice, of course this will mean a 51% interest by a Zanu-PF party member or chroney.

The result of this will be that those large agro and mineral companies with holdings still in Zimbabwe will withdraw. And, the main boards of such bodies are unlikely to be willing to sponsor inward investment to the country in the future, where there is a controlling interest in the local operating company which is directed by Zanu. The consequence will be a further decline in the manufacturing and raw material producing base of the Zimbabwean economy. It may very well also lead to the withdrawl of capital from the country.

Last week's TV documentary contained a segment on Zanu grabbing property. It seems that in fact Zanu are going after capital.