ZIMBABWE EXTENDS RACIAL REDISTRIBUTION POLICIES TO BUSINESSES

As of the 1st of March 2010, not only white-owned farms, but also businesses could be targeted by Zimbabwe's discriminatory reform policies.

According to a report by SAPA (see here), white businesspeople in Zimbabwe who do not cede control of their companies to black partners, could face jail sentences under a law coming into effect next month.  An official notice of Tuesday states that the law will be enforced from the 1st of March, and includes jail penalties of up to five years.  It gives companies worth $500,000 or more, 45 days to submit compliance proposals.  Foreign investors also need to meet an "empowerment quota".

The law was passed by the Harare parliament when it was still dominated by ZANU-PF in 2008 and is meant to benefit "indigenous" Zimbabweans -those who suffered under the so-called colonial-era racial discrimination and their children born after independence in 1980.

AfriForum's legal representative, Willie Spies, said in a statement that the new development calls for more drastic measures by the South African government to assist its citizens affected by Mugabe's controversial policies.

The well-known South-African farmer and businessman, Mr Crawford von Abo succeeded last week with a court application to declare the South African government liable for constitutional damages due to its failure to grant diplomatic protection to South African investors in Zimbabwe.

AfriForum will also approach the High Court later this month to have a ruling by the tribunal of the Southern African Development Community (SADC) against Zimbabwe, registered in a South African Court.

Statement issued by Willie Spies, Legal Representative - AfriForum, February 10 2010

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