Mugabe may nationalise firms
2007-06-27 15:20
Special Report
A classical music presenter for the BBC has been arrested and is in custody in Zimbabwe.
Harare- Zimbabwe's President Robert Mugabe has renewed threats to "nationalise" the country's resources sector and threatened to "crack the whip" on business for the escalation of prices.
Mugabe was speaking in a televised burial speech at the National Heroes Acre.
The veteran leader, 84, said he would "seize mines" and "nationalise all companies" if miners and business alike continued, "playing dirty games".
Mugabe took aim at gold miners accusing them of externalising foreign currency saying his government is now ready to play hardball.
Although he did not point fingers at any particular miner, Mzi Khumalo's Metallon Gold Zimbabwe, is the country's largest gold producer and accounts for 60% of the country's bullion output while Rio Tinto Zimbabwe is the second largest gold producer. A hundred others are operating smaller mines in the gold sector.
He also warned his government was ready to clampdown on business if they did not back off from incessant price increases in a bid to rein in inflation believed to be above 4 500%.
This comes after Industry Minister Obert Mpofu on Tuesday ordered retailers and manufacturers to reduce prices of basic goods by 50%. The order was met with mixed reactions with some retailers complying while others ignored the order.
But after Mugabe's speech, retailers might not have any choice. Several executives have been arrested for increasing prices.
Mugabe said: 'The nonsense of escalating prices has come to an end. When we crack the whip, we do not care whether you a baker, cement manufacturer or construction supplier, we will follow you. Take note!
"We will crack the whip. This game is not going to be a good one. It's going to be a rough game. We are not going to lose this war. We have resources in this country and those in the mining sector must know and must strengthen their ways.
"We will arrest those externalising foreign currency in gold sector. We will seize the mines and nationalise all companies. We will take all the companies, all of them if they continue with this dirty game."
This is not the first time Mugabe has threatened to take over mines, but the gazetting of an Indeginisation and Empowerment Bill his week could reaffirm fears that the aged statesman might be going for yet more farm style seizures ahead of the presidential election in March next year.
But analysts have warned that if he follows through on the threats this will be the last straw to the country's already ailing economy.
His latest stance is a contradiction of his earlier position to have a "well planned" empowerment plan in the sector, which will not hurt the economy.
The Chamber of Mines could not be immediately reached for comment.
- Finance24