President Robert Mugabe threatened to seize all U.S. and U.K. firms in Zimbabwe if the countries don’t lift sanctions against him and his Zanu-PF party members for alleged human rights violations.
At a rally in the capital city of Harare, Mugabe blamed his country’s economic woes on foreign companies, which he said should be nationalized.
Mugabe already nationalized both a Swiss global food giant for refusing to buy local milk from his own company and a large investor for taking his money to South Africa, according to the Zimbabwean Report (ZP), a newspaper for Zimbabweans in exile.
In December 2008, Mugabe signed into law the Indigenization and Empowerment Act, which requires foreign firms to hand over at least a 51 percent stake in their Zimbabwe investments to locals.
Mugabe said that the 51 percent stake would be expanded to 100 percent if sanctions were not lifted. The law was seen as a populist bid for votes.
Enforcement of the law has been on hold while members of the coalition regime and businesses discuss how best to implement the law.
ZP reported that U.S. and U.K. firms were forced to sign documents demanding that their respective governments remove all sanctions against Mugabe and his supporters, including the unfreezing of Mugabe’s assets and allowing him unrestricted travel to the United States and EU countries.
The United States imposed sanctions in 2001 after accusing Mugabe and his supporters of gross human rights violations. The EU followed suit in 2002, also citing rights abuses.
Both the United States and EU said that sanctions would be lifted only when they see evidence of tangible democratic reforms.
At a rally in the capital city of Harare, Mugabe blamed his country’s economic woes on foreign companies, which he said should be nationalized.
Mugabe already nationalized both a Swiss global food giant for refusing to buy local milk from his own company and a large investor for taking his money to South Africa, according to the Zimbabwean Report (ZP), a newspaper for Zimbabweans in exile.
In December 2008, Mugabe signed into law the Indigenization and Empowerment Act, which requires foreign firms to hand over at least a 51 percent stake in their Zimbabwe investments to locals.
Mugabe said that the 51 percent stake would be expanded to 100 percent if sanctions were not lifted. The law was seen as a populist bid for votes.
Enforcement of the law has been on hold while members of the coalition regime and businesses discuss how best to implement the law.
ZP reported that U.S. and U.K. firms were forced to sign documents demanding that their respective governments remove all sanctions against Mugabe and his supporters, including the unfreezing of Mugabe’s assets and allowing him unrestricted travel to the United States and EU countries.
The United States imposed sanctions in 2001 after accusing Mugabe and his supporters of gross human rights violations. The EU followed suit in 2002, also citing rights abuses.
Both the United States and EU said that sanctions would be lifted only when they see evidence of tangible democratic reforms.
