The government of Robert Mugabe has given foreign-owned companies a two-week deadline to submit "acceptable" plans to transfer 51 per cent stakes to locals.
The move would effectively force companies to hand over control to Zimbabwean businessmen, inevitably those with connections to the ruling ZanuPF party.
Some 400 British, European, South African and US firms will be affected. These include: Rio Tinto and Anglo American, the mining giants; manufacturers such as British American Tobacco and Nestle; as well as local units of the British banks Standard Chartered and Barclays.
The policy, called "indigenisation" has been hanging over companies for some time, but with elections likely next year and questions around the 87-year-old president's health, it has been given new impetus.
"Anglo American, Rio Tinto; you must transform and become Zimbabwean," Mr. Mugabe said at a rally last week. "If you have companies which would want to work in our mining sector, they are welcome to come and join us, but we must have our people as the major shareholders."
This week the indigenisation minister, Saviour Kasukuwere, warned that banking licences to Standard Chartered and Barclays could be withdrawn unless they begin ownership transfer. "The act will be implemented without fear or favour," Mr Kasukuwere told the state-run Herald newspaper. He implied special attention would be paid to corporations domiciled in countries opposed to Mr Mugabe's rule.
"We will not be deterred from implementing the laws of the land and those foreign banks whose parentage in any case continue to attack and affect our people with illegal sanctions cannot be defended by any logical Zimbabwean," he said.
Doing business in Zimbabwe has always been tricky. Sanctions against Zimbabwe's leaders have not extended to doing business in the country, but for those operating there, navigating local politics with international sentiment has been difficult, as Nestle, the Swiss food manufacturer, found to its cost.
Three years ago it was revealed that Nestle's Zimbabwean unit was buying up to 15 per cent of its local milk supplies from Gushungo Dairy Estate.
The farm, the largest dairy producer in Zimbabwe, had been sold by its white owner to the president's wife, Grace Mugabe, after a long campaign of intimidation.
Nestle dropped its contract with Gushungo following the international outcry it caused, and after threats of a worldwide boycott. But in dumping Mrs Mugabe's dairy, the Swiss multinational earned the enmity of the president.
Managers have been harassed by security police, and were forced to accept tank-loads of milk from Gushungo. Nestle briefly closed its operations in protest. It has since resumed production, but its name comes up regularly whenever senior government officials talk of indigenisation. The uncertainty caused by indigenisation has weighed on a moribund economy.
The Confederation of Zimbabwe Industries says factories on average are operating at 30 per cent capacity. Outdated machinery is not being replaced because parent companies are reluctant to invest, and banks are withholding loans for capital upgrades.
"Virtually all foreign companies have stopped major funding for their Zimbabwe operations because of the uncertainty and confusion," said Welshman Ncube, Zimbabwe's minister of industry and commerce.
Mr Ncube, although a cabinet minister, is powerless to intervene: he is also a senior member of the opposition Movement for Democratic Change (MDC). Since 2008, the MDC has theoretically been an equal partner in ruling Zimbabwe in an uncomfortable alliance with ZanuPF.
In reality, the MDC is frozen out of critical decision-making, which is usually carried out behind closed doors, by Mr Mugabe's inner circle.
The MDC's members, meanwhile, are subject to beatings, kidnap and torture by the feared Central Intelligence Organisation - Zimbabwe's secret police, which has propped up Mr Mugabe's rule over the past 31 years.
Chinese companies, meanwhile, are exempt from the ownership transfers, Mr Kasukuwere has said. China is a significant investor in Zimbabwe and its companies have fanned out through Zimbabwe's economy, even as western competitors called it quits.
business@thenational.ae
RESULTS
6.30pm: Longines Conquest Classic Dh150,000 Maiden 1,200m.
Winner: Halima Hatun, Antonio Fresu (jockey), Ismail Mohammed (trainer).
7.05pm: Longines Gents La Grande Classique Dh155,000 Handicap 1,200m.
Winner: Moosir, Dane O’Neill, Doug Watson.
7.40pm: Longines Equestrian Collection Dh150,000 Maiden 1,600m.
Winner: Mazeed, Richard Mullen, Satish Seemar.
8.15pm: Longines Gents Master Collection Dh175,000 Handicap.
Winner: Thegreatcollection, Pat Dobbs, Doug Watson.
8.50pm: Longines Ladies Master Collection Dh225,000 Conditions 1,600m.
Winner: Cosmo Charlie, Pat Dobbs, Doug Watson.
9.25pm: Longines Ladies La Grande Classique Dh155,000 Handicap 1,600m.
Winner: Secret Trade, Tadhg O’Shea, Ali Rashid Al Raihe.
10pm: Longines Moon Phase Master Collection Dh170,000 Handicap 2,000m.
Winner:
Company profile
Name: Dukkantek
Started: January 2021
Founders: Sanad Yaghi, Ali Al Sayegh and Shadi Joulani
Based: UAE
Number of employees: 140
Sector: B2B Vertical SaaS(software as a service)
Investment: $5.2 million
Funding stage: Seed round
Investors: Global Founders Capital, Colle Capital Partners, Wamda Capital, Plug and Play, Comma Capital, Nowais Capital, Annex Investments and AMK Investment Office
Fines for littering
In Dubai:
Dh200 for littering or spitting in the Dubai Metro
Dh500 for throwing cigarette butts or chewing gum on the floor, or littering from a vehicle.
Dh1,000 for littering on a beach, spitting in public places, throwing a cigarette butt from a vehicle
In Sharjah and other emirates
Dh500 for littering - including cigarette butts and chewing gum - in public places and beaches in Sharjah
Dh2,000 for littering in Sharjah deserts
Dh500 for littering from a vehicle in Ras Al Khaimah
Dh1,000 for littering from a car in Abu Dhabi
Dh1,000 to Dh100,000 for dumping waste in residential or public areas in Al Ain
Dh10,000 for littering at Ajman's beaches
COMPANY%20PROFILE
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Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
How to wear a kandura
Dos
- Wear the right fabric for the right season and occasion
- Always ask for the dress code if you don’t know
- Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
- Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
- Wear hamdania for work, always wear a ghutra and agal
- Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
The Al Barzakh Festival takes place on Wednesday and Thursday at 7.30pm in the Red Theatre, NYUAD, Saadiyat Island. Tickets cost Dh105 for adults from platinumlist.net
Ms Yang's top tips for parents new to the UAE
- Join parent networks
- Look beyond school fees
- Keep an open mind
Our legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Tips for taking the metro
- set out well ahead of time
- make sure you have at least Dh15 on you Nol card, as there could be big queues for top-up machines
- enter the right cabin. The train may be too busy to move between carriages once you're on
- don't carry too much luggage and tuck it under a seat to make room for fellow passengers
MATCH INFO
Uefa Champions League semi-final, first leg
Bayern Munich 1
Kimmich (27')
Real Madrid 2
Marcelo (43'), Asensio (56')
THE SPECS
Engine: 6.75-litre twin-turbocharged V12 petrol engine
Power: 420kW
Torque: 780Nm
Transmission: 8-speed automatic
Price: From Dh1,350,000
On sale: Available for preorder now
THE%20HOLDOVERS
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Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
WITHIN%20SAND
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Killing of Qassem Suleimani
Match info
Manchester United 1
Fred (18')
Wolves 1
Moutinho (53')
