Sanctions were caused by ZanuPF – Dabengwa

Published: February 23, 2010

Bulawayo   – ZAPU leader Dumiso Dabengwa says Zanu-PF’s policies of seizing farms and forcing foreign firms to cede majority shareholdings locals is counterproductive and mounts to self-imposition of sanctions on the country.

Addressing Zapu supporters at a packed Lobengula Hall on Saturday in Zimbabwe’s second capital city Bulawayo, Dabengwa said financial and targeted sanctions imposed on the country were caused by Zanu-PF’s
controversial policies.

He said no foreigner, even from Zanu-PF’s so-called friendly countries from the East would invest in a country where laws required them to be minority shareholders in their own firms.

Dabengwa said it was worrying that the farm seizures have resumed for the few remaining white farmers, some of who had already had their farms extensively reduced during the previous land resettlement. He said the
proposed new law which forces foreign-owned firms to surrender 51 percent of their equity to locals was counterproductive.

“Farmers who had invested so much capital, and in some cases had found international partners, were just evicted by someone who just had to bring an offer letter for the land from the government. Now they are targeting mines and businesses through what they call indigenization. Who would invest his or her money so that they could become a minority shareholder? We put ourselves and the country under sanctions due to our bad policies,” he said.

Dabengwa added: “Even the Russians and Chinese would not invest under those circumstances. In effect we have imposed sanctions on ourselves. We must remove the sanctions we put on ourselves first before expecting the EU and the US to remove theirs.”

Zanu-PF has, through the minister of indigenization, Saviour Kasukuwere, enacted a law that forces foreign owned firms to cede 51 percent of their equity to locals.

Dabengwa said the forthcoming Zapu congress would debate and come up with investor and people friendly policies.