Zimbabwe`s equity law is recipe for economic disaster: analysts

source: ZimNews

author/source:AFP
published:Mon 10-Mar-2008

“The real crisis is not indigenisation but crippling shortages”

Harare – A new equity law passed by President Robert Mugabe to ensure the population gets a majority stake in public-owned firms will plunge Zimbabwe into deeper economic woes, analysts predicted on Monday. Last week, Mugabe, who is facing elections this month, passed the indigenisation and economic empowerment act which states that “indigenous Zimbabweans shall own at least 51 percent of the shares of every public company and other businesses”. “It will entail the destruction of the economy,” Harare-based economist Godfrey Kanyenze told AFP. “We should have learnt from the blunders of the land reforms where people who were not properly equipped rushed to grab farms. “The result was a disaster in the agricultural sector and we are now importing maize from the countries where the former farmers have migrated to.”

Eight years ago, the government launched land reforms which saw the state seize some 4,000 white-owned farms for redistribution to [continue reading]



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