Zimbabwe’s economy nose-dived after President Robert Mugabe sanctioned brutal and illegal confiscation of white-owned farms for redistribution to cronies.  The new proprietors proved abysmal failures as farmers, and Zimbabwe was quickly transformed from the bread basket of southern Africa into a basket case.  The people were soon forced to rely on foreign charity for food.  The economic free-fall into hyperinflation, mass unemployment, and widespread poverty is largely attributable to the land seizures.

Apparently buoyed by that resounding success, Mugabe intends to inflict similar “reforms” on his country’s corporate sector.

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.
. . .
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.

Isn't that an admission that the land reforms failed to "empower" the people?

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

“In the same fashion”?  You mean armed and disorderly mobs will descend on corporate offices to terrorise company officers and their families?

If this lunatic proposal is actually implemented, watch for what is left of the economy to vapourise in short order.

At the same time, the government has moved to expropriate some of the few farms still under white ownership.  One of the farms is owned by three brothers who received a written assurance from Vice-President Joseph Msika and Intelligence Minister Didymus Mutasa that their farm would not be seized.  That and 500,000 Zimbabwe dollars will get the brothers a cup of coffee.

Previous related posts: