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Nationalisation not government policy: MDC

by MDC Info department
03 Mar 2011 at 11:45hrs | Views
The MDC dismisses, as false, the latest threats by Zanu PF indicating that the inclusive government plans to nationalize foreign businesses and hand them over to a minority section of Zimbabweans.  For the record, it is not government policy to forcibly seize foreign owned businesses under the guise of indigenization.
At a party marking his 87th birthday, Robert Mugabe said the government would target South African backed platinum giant, Zimplats, and the Swiss milk processor ,Nestle, for nationalization because, in his view, they were looting the nation's prime resources.
With respect to the latter (Nestle) the specific reason he gave was that they refused to purchase milk products from Gushungo Dairies- an entity owned by his family. We find this not only strange but also disturbing.  Strange because normal business practice is that a consumer is free to exercise their choice relating to which product to purchase. In making such choices, consumers normally take into account a variety of factors especially the quality of the product within the context of their own specifications, and of course, the price. 
Could these be the critical factors that informed Nestle's decision we wonder?  Disturbing because he is clearly using his position as President to threaten Nestle with that type of action simply for exercising their right to choose? 
With respect to the former (Zimplats), Robert Mugabe's accusations that "Zimplats has never given us any substantial money√¢‚Ǩ¬¶they are taking all the money to South Africa", are not only based on inaccurate information but are also disingenuous. 
Available information suggests that Zimplats have always operated within the framework of Zimbabwe's tax legislation, and more importantly, have recently announced a US$500 million investment and expansion plan for this country.  This, in our view, is clearly not "√¢‚Ǩ¬¶taking all the money to South Africa" especially as their reported profits for the half year to December 2010 were US$85 million.  Disingenuous, because we are aware of their commendable social responsibility policy whereby they have constructed various community-related projects such as hospitals, Clinics and Schools in their areas of operation.  The donation of a mortuary to the Zvishavane government hospital and the construction of a School in that area by their subsidiary, Mimosa Platinum mine, are cases in point.  
We wish to advise the people of Zimbabwe that the legal and policy position of the Inclusive Government has no provision for this kind of disruptive behavior by Robert Mugabe.  One of the key political drivers underpinning the Inclusive Government is the need for economic stabilization and growth.  Clearly his utterances are inimical to this. Economic growth is only possible where more investors, both local and foreign, are encouraged to set up shop in Zimbabwe rather than being driven away through statements which cause uncertainty and raise risk perceptions in  their minds. 
An MDC government will encourage foreign direct investment in this country subject to the investors' commitments to: operating within acceptable corporate governance practices, maintaining healthy and safe working environments, ensuring the sustainable use of natural resources, guaranteeing fair returns to all stakeholders and cultivating a high moral and social conscience consistent with acceptable labour relations and social justice.
The MDC finds Mugabe's statements confused and contradictory.  Recently when he opened the "One Stop Shop" at the Zimbabwe Investment Authority, he appealed for increased foreign direct investment.  Today, he has shifted his position calling for the wholesale takeover of existing business entities.
We in the MDC are for the creation of an enabling environment for greater investment, respect for private business initiatives, encouraging Zimbabweans to lawfully expand the economic cake, rather than shrink it further by plundering the few existing companies struggling to take off after years of politically induced economic stagnation, hyperinflation, economic mismanagement and endemic corruption.

Source - MDC