The country which over the past decade is most synonymous with “financial innovation” of the less than desirable kind, such as hyperinflation, complete currency and economic collapse and wholesale property confiscation, has just taken financial central-planning brilliance to the next level and following dictator Robert Mugabe’s “reelection” has announced plans to open a new and “racially exclusive” stock exchange, allowing blacks alone to trade. And not trade just anything, but shares of recently nationalized foreign companies, most of which are South African-owned miners. Or rather were, because following the most recent nationalization round, Zimbabwe would take a 51% stake in all major foreign-owned companies valued at over $7 billion. No compensation will be paid.
The plan to grab mining companies, most of which are South African-owned, follows President Robert Mugabe’s landslide re-election last week.
Saviour Kasukawere, the ‘indigenisation‘ minister, said on Tuesday that the government or black Zimbabweans would take 51 per cent of the shares in all major foreign-owned companies, valued at about £4.8 billion. No compensation will be paid.
The regime wants to control mining companies and in particular Zimplats, a major platinum producer which is largely owned by South Africa’s Impala Platinum Holdings.
