Zimbabwean Indigenization Minister Saviour Kasukuwere’s assertion that a sovereign wealth fund created from stakes ceded by foreign-owned companies is worth $4 billion was questioned by economists who said the announcement may be aimed at securing votes ahead of elections.
President Robert Mugabe’s government plans to seize control of foreign-owned mines without paying for them as part of a program to accumulate $7 billion of assets following his July 31 election victory, a minister said.
Zimbabwe’s elections this week probably won’t end President Robert Mugabe’s 33-year rule or his policies that stifle investment, according to analysts such as John Meyer at London-based SP Angel Corporate Finance LLP.
Zimbabwean Indigenization Minister Saviour Kasukuwere said he will meet Barclays Africa Chief Executive Officer Kennedy Bungane about plans by the lender’s local unit to sell a majority stake to black citizens by June.
Zimbabwe may cancel business licenses held by foreign-owned companies if they don’t comply with a requirement to cede 51 percent ownership to black Zimbabweans, Empowerment Minister Saviour Kasukuwere said.
Impala Platinum Holdings Ltd.’s Zimbabwean unit, known as Zimplats, has failed to meet new laws on asset ownership and may have its mining license revoked, according to Indigenization Minister Saviour Kasukuwere.