Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
Zimbabweans queue outside a branch of Barclays bank in Harare, on December 31, 2007/AFP

Kenya

Fears for Zimbabwe economy after Mugabe rout

Zimbabweans queue outside a branch of Barclays bank in Harare, on December 31, 2007/AFP

Zimbabweans queue outside a branch of Barclays bank in Harare, on December 31, 2007/AFP

JOHANNESBURG, August 3 – Robert Mugabe’s apparent landslide election victory has prompted fears that Zimbabwe’s barely resuscitated economy is in for another bumpy ride.

The full results are not yet in, but Mugabe’s triumphant allies have already vowed to redouble efforts to put assets into the hands of black Zimbabweans.

“All resources must be for the benefit of our own people. We will no longer tolerate any exploitative relationship,” Justice Minister Patrick Chinamasa said on Friday.

“We are going to continue with our message that our resources must come under the control of the people of Zimbabwe.”

After land and mining grabs, Chinamasa has already singled out the country’s foreign-owned banks as targets for indigenisation.

“All the banks are British owned, that is why they are refusing to give credit to our people,” he said.

In recent years Mugabe’s ZANU-PF hardliners have talked a lot about seizing financial firms like Britain’s Standard Chartered and Barclays.

There have even been threats against South African firms like Standard Bank despite the risk of irking a powerful neighbour.

But generally cooler heads have prevailed.

“Destabilising a large bank such as Standard Chartered has serious systemic consequences that can lead to unintended results,” Zimbabwe’s central bank chief and Mugabe ally Gideon Gono said in April.

Advertisement. Scroll to continue reading.

But the scale of Mugabe’s supposed victory may give the hardliners the upper hand.

And some analysts believe Mugabe, already 89 years old and trying to keep successors at bay, may have little choice but to expropriate assets and divvy up the spoils.

“The only way for ZANU-PF to maintain the loyalty of the armed forces and of its supporting structure is to find ways of extracting resources,” said Jakkie Cilliers, director of South Africa’s Institute for Security Studies.

Pages: 1 2 3

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...