ANALYSTS in the mining and other industries have express shock and scepticism over alleged talks between mining giant Anglo American and Zimbabwe’s opposition Movement for Democratic Change party led by Morgan Tsvangirai.
Yesterday we reported that the MDC party and Anglo were involved in sideline deals that would see mining concessions ceded to the Zanu PF government by Anglo reversed if the opposition party came into power.
The story was broken by the Financial Times (UK) and alleged that two MDC-T officials had held secret talks with the mining giant and had promised them some deals should they get into power. This development was barely a week after MDC treasurer-general, Roy Bennett had expressed his anger at the fact that Anglo was planning a US$400 million investment in Zimbabwe.
Bennett at the time argued that the mining conglomerate was “propping up the Mugabe regime”.
Industry analysts expressed scepticism at the alleged deals and Anglo and the MDC-T party remained tight-lipped on the allegations.
Anglo American spokesman James Wyatt-Tilby was approached by The Times (SA) newspaper and would not comment on the story.
Sholto Dolamo, precious metals analyst at Stanlib was quoted as saying the story was “a bit dodgy”. He said: ‘‘I think the story is a bit dodgy. It is very unlike Anglo to talk to the MDC without the MDC being the official ruling party.”
Dolamo added: “Investors … have adopted a wait-and-see approach. You could have burned your fingers earlier, for example, after the elections when it seemed the MDC had won. If you had gone in there lock, stock and barrel you would have burned your fingers. So investors have a wait-and-see approach.”
South Africa’s Standard Bank economist Victor Munyama also expressed that many companies had taken that “wait-and-see approach” adding that mining in Zimbabwe had the potential of becoming very big. He said that many companies had pulled out of Zimbabwe, but were now waiting in the wings.
“Zimbabwe has the largest platinum reserves in the world after South Africa. Mining was big in Zimbabwe and has the potential to be big again. So I think a lot of corporations are waiting on the periphery,” said Munyama.
“I don’t think many corporations will engage in talks with political parties.
“Property rights, the rule of law, can contracts be enforced — corporations will be looking more at those.
“It doesn’t make any sense to make a deal with any party before there is assurance that those domestic institutions are in place. So far, we are not quite sure what the outcome is going to be.
“A lot of institutions and corporations will go back, but the political direction needs to be certain. It is common knowledge that everyone is waiting on the periphery.”
Munyama added that the government of Zimbabwe needed to make clear to investors the details of the empowerment legislation and how it will, in the short run and long run, affect investors. He said greater clarity was still needed on Zimbabwe’s economic empowerment legislation.
In March, the Zimbabwe government passed the Indigenization and Economic Empowerment Act, mooted last year which will force foreign-owned firms to sell at least 51% of the shares of every public company and other businesses to indigenous Zimbabwean businessmen.
The Act also specifies that no restructuring, merger or demerger shall be approved unless indigenous Zimbabweans hold 51 percent shares in the resultant business.
An agreement between the MDC and Anglo could affect current negotiations aimed at finding a peaceful solution to the Zimbabwe crisis. It could also affect current contracts that the government of Zimbabwe holds with other companies.
In April this year, a deal was struck between the Zimbabwe government and AIM-listed copper and cobalt producer Camec which bought former Anglo-owned platinum properties in Zimbabwe through the acquisition of British firm Lefever Finance.
Camec is owned by former England cricket spin bowler, Phil Edmonds who recently came under fire from Britain for doing business with President Robert Mugabe’s government.
Camecsaid it believed that "investing in Zimbabwe at this early stage is the best way to help the people of Zimbabwe while also generating shareholder value".
Omuhle • n/a Subject: n/a Mon, 18 Aug 2008 17:43:32 • So you guys would accept a govt by ZANU PF even despite all the misgovernance we've had in their 28years in power. Even if we accept that the last 8 years we've been under sanctions and denial of lines of credit, we can still see a trend towards elitism and serious corruption in the 20 years between 1980 and 2000. Even if we accept the sanctions had a profound effect and stopped us interacting with the global world of economics we can still not explain why there are certain countries like Cuba where sanctions have had an effect for close on 50 years yet they did not record infletion of 2 million percent or award ministers with farms and so on. In Cuba Castro dug in and spread the scarce resources among the people. He is a true socialist not the ZANU PF war vets who swore upon returning to Zimbabwe that they did not fight the war to come back and work. They always had it in mind that they would rule forever, using the gimic that they work for the people as the only revolutionary party. The revolutionaries have long died. Nkomo, Chitepo, Tongogara, Lookout, Ushewokunze, Chambati, Sithole and others.
The few who still cannot see through this facade of propaganda must surely lack an education or are indeed part of the elite for what man would accept the destiny of one man rule from a man who has a very dodgy background, his father's origins are unknown, his contribution to the struggle is questionable and his leadership was accented to by a man who is implicated in the death of the 2 men who would have likely led the country, CHitepo and Tongogara. We all know who sold a leadership under Mugabe to the freedom fighters........
Roderick, Herts • na. Subject: HAS HE BEEN SENT BY GOD? Mon, 18 Aug 2008 00:22:06 • As a staunch ZPF supporter I actually think Morgan has been good for the country in that he has woken a complacent sleeping giant.
Imagine if he was as half as determined and as mercenary as some of those who fought against the colonial settlers? He would have taken ZPF by complete storm and a major takeover would have been over in the blink of an eye.
Be grateful for small mercies and receive him now as our Prime Minister so the dust of a potential war zone can settle and we can get on with our lives.
MrK • bannie2020@hotmail.com Subject: Tsvanirai Caught Out Sun, 17 Aug 2008 20:02:55 • Omuhle,
This is nonsense! I could so easily peddle a fictitious tale that ZANU PF has negotiated a deal with the Chinese to grab the assets of all the companies who left Zimbabwe in response to the British govt's call for boycotts of the country.
Except that the MDC's Eddy Cross is on record stating that he wants to privatise everything in sight.
The MDC's neoliberal credentials - and with it the desire to privatise (sell out) all government assets and departments - are not in question. They were even spelled out in their new 2008 Manifesto. They even believe that there is a consensus that neoliberalism is the right way to go, even when all over South America people are turning toward leftwing governments and nationalisation.
Privatisation will lead to massive job losses as they have everywhere else they have been implemented (Russia, Chile, Equador, etc.).
The MDC is always claiming that the government and president are not 'taking responsibility', but it is they who refuse to take responsibility for their policies and actions. Just as they won't own up to the existence of sanctions or their aim at the government and economy of Zimbabwe and their disastrous effects, it now appears they will not own up to the consequences of implementing 'privatisation' (selling off state assets and companies for cents on the dollar) and 'free markets' (opening up the Zimbabwean markets to foreign produced goods, which will destroy whatever manufacturing companies that are left).
And now Morgan Tsvangirai is slowly being exposed for what he is - an opportunist, a liar, and a front for western corporate interests against the interests of the people of Zimbabwe.
n/a • n/a Subject: n/a Fri, 15 Aug 2008 19:33:32 • I think Omuhle cannot see the wood for the trees. MT is a British puppet and like all puppets when left to assume power, all the puppeteer needs to do is to tweek at the strings and the doll will dance. As it is the British peoples' interest to recolonise Zim thru this idiot we were so unfortunate to have born amongst us, those who fervently, overzealously and unquestionably buy this nonsense about the rule of law can only dupe none but themselves. If MT's political masters could not stick to the terms of the Lancaster House agreement what makes O'Muhle think that they will stick to any decisions upheld by kangaroo courts headed by selected puppets appointed by a coterie of their chosen puppets? Lets not kid people into thinking that MT is the best thing to ever happen to Zim. He is a curse we have had the unfortunacy to have in our midst! May the good lord do something and give light to this idiot or otherwise switch the light off.
Patrick Fletcher • hajray@gmail.com Subject: Analysts respond to MDC, Anglo ‘deal’ Fri, 15 Aug 2008 16:22:13 • Not only will Tsvangirai reverse the 51% shares that Zimbabweans have in companies, he is also going ot reverse the land reform should the MDC come to power. This fellow, Tsvangirai, is the ultimate puppet doll.
MADE OF THE WHITE STUFF • na. Subject: WE ARE POO. Fri, 15 Aug 2008 10:38:05 • Does this mean that Morgan intends to and is making plans to reverse the 51% of mining shares belonging to Zimbabweans? So that anyone can have a share in mining ventures now?
Where there is smoke there is usually fire. What exactly is going on?
You can see the wounds of the Kenyans but you cannot see our own wounds - we are a nation that is bleeding internally. and no one cares because no one can see what is really going on.
sanctions are the worst thing that could happen to our people, those now unemployed who are walking the streets looking for work.
those individuals who are supposed to be affected by the sanctions dont bother with travelling to the west anymore anyway - as they are doing great business deals with the east so what is the west trying to prove?
when will someone realise that the west is actually screwing itself into the ground over Zimbabwe with its sanctions because there are deals going on behind their backs with the east that they are losing out on big time. and so are we, the povo, walking the streets looking for honest jobs.
sanctions are creating refugees and asylum seekers that the British have to sustain now, giving them benefits and feeding them and educating them.
in addition, sanctions are creating crooks who are struggling to survive by any means, even if it means resorting to dishonesty.
we are Britain's stepchild and they are treating us, the man in the street and our families, like poo.
Omuhle • n/a Subject: n/a Fri, 15 Aug 2008 10:34:00 • This is nonsense! I could so easily peddle a fictitious tale that ZANU PF has negotiated a deal with the Chinese to grab the assets of all the companies who left Zimbabwe in response to the British govt's call for boycotts of the country.
This is what we expect in these begotiations where one party is keen on portraying the other as puppets eager to reverse the gains of independence i.e the wealth accumulated by the elite class i.e ZANU PF functionaries, illuminaries and pseudo-war veterans.
At the end of the day MDC cannot enter into anything that is contrary to the law of the land, we will challenge it in court and the court will be free and fair without favour. More importantly, MDC will abide by the ruling of the courts if they overturned any deal done with Anglo.
Can we say so much about ZANU PF? Have they ever listened to the courts? have they reversed the decision of the SADC arbitration court or even abided by the requirements fo holding elections, for detaining suspects willy-nilly and denying them legal access or even bringing them before a judge.
We are not as stupid as to buy these lies.
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