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Zimbabwe Threatens Foreign Banks Over Empowerment

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http://uk.reuters.com/article/2011/05/15/uk-zimbabwe-banks-idUKTRE74E2C620110515

Zimbabwe's central bank said it planned to take punitive measures against foreign-owned banks that resist demands to transfer majority shareholding to local blacks under a controversial empowerment policy.

President Robert Mugabe's ZANU-PF is pushing plans to force all foreign companies to cede controlling stakes to blacks, a policy which his rival Prime Minister Morgan Tsvangirai has denounced as "looting and plunder" by a greedy elite.

Analysts say the move is likely to discourage foreign investment in the recovering economy.

In an interview with the official Sunday Mail newspaper, Reserve Bank of Zimbabwe (RBZ) Governor Osborne Gono said the government was in consultation on how to handle the empowerment programme for the financial sector.

Gono did not say whether foreign banks had submitted plans to comply with empowerment laws but urged them to do so.

Here we just cede control to the bankers. Good job Zimbabwe doesn't have oil, I doubt the international community would have been so patient if they had.

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Empowerment. Nice euphemism for outright expropriation.

Always a risk when investing or doing business in unstable regimes. The state will make a grab for your assets. Same risks exist in formerly stable regimes in going through economic shock when the easy money runs out leading to growing calls for income and wealth redistribution through legalised stealing from others.

So Zimbabwe wants controlling stakes in the companies who have invested and who are running diamond mines, platinum outfits, probably tobacco companies and foreign banks. It seems likely this policy will cause all of the businesses to become very inefficient, cause more unemployment and make a lot less money for everyone in the long run, including tax revenues. All for short term gain for those getting a chunk of the spoils through empowerment.

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The big miners have annual revenues ten times the size of Zimbabwe's GDP. They are owned by investors throughout the world. The world will not transfer their wealth to Mugabe's thugs.

I am surprised that they have left him alone. It would be a simple matter to hire a mercenary force to take him out.

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The big miners have annual revenues ten times the size of Zimbabwe's GDP. They are owned by investors throughout the world. The world will not transfer their wealth to Mugabe's thugs.

I am surprised that they have left him alone. It would be a simple matter to hire a mercenary force to take him out.

Mugabe has already tried to take out Tsvangirai though , remember his wife died in an 'accidental' car crash a few years ago? she was run off the road by Mugabes thugs.

Still , keeping him alive fits in with the globalists agenda in keeping Africa penniless and destitute.Zim was the jewel in Africas crown until 1980 when Mugabe took over.Now , when Gaddaffi has improved the lifestyle of Libyans immensely they try to take him out and turn Libya into a 3rd world country again.All so it is easier to steal the assets of Africa and control the Africans.

Edited by Ruffneck

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  • 277 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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