Zimbabwe: Foreign firms forced to back Mugabe's sanctions protest

Emmerson Mnangagwa, a close ally of the Zimbabwean president, told party supporters this weekend that the authorities were "in the process of rounding up" the bosses of foreign businesses still operating in the struggling southern African country.

"We will ask them if they support sanctions or not," Mr Mnangagwa said.

"Those who indicate that they do not support sanctions will be asked to go live on national radio and tell the nation and the rest of the world their company does not support sanctions."

Mr Mugabe's party has vowed to make sure sanctions are lifted in 2011. But it is increasingly apparent that the Zanu-PF top brass plans to try to do this by intimidation - and not by cleaning up their rights record.

Britain, the EU and the US have refused to lift travel sanctions and asset freezes imposed because of rights abuses of Mr Mugabe, 86, and around 200 of his colleagues, including Mr Mnangagwa, who is seen as a possible successor to the president.

Mr Mugabe has repeatedly told Zimbabweans that "illegal sanctions" and not his policies are to blame for the country's devastating nine-year economic crisis.

The defence minister said chief executives who refused to denounce the sanctions on the radio would face "punitive measures" that would likely include the takeover of 90 per cent of their company shareholding.

Controversial new black empowerment laws allow government-approved businessmen to take over 51 per cent of shares in all foreign- and white-owned companies with assets worth more than $500,000 (315,000)

The fear is that as during the violent early days of land reform in and after 2000, Mr Mugabe's supporters will not abide by their own laws. The government was then not supposed to seize farms from white families who only owned one farm. But gangs of invading "war veterans" ignored the restrictions.

Mr Mnangagwa said the money realised from the 90 percent share takeovers would go into a new "anti-sanctions fund". The fund will be used to finance an aggressive campaign against the restrictive measures and "all foreign companies operating in the country (will be] compelled to assist," he said. British companies affected could include Barclays Bank, Standard Chartered Bank, and mining giants Rio Tinto and Anglo Platinum

Officials from prime minister Morgan Tsvangirai's MDC party fear statements similar to this one from the defence minister will scare away the foreign investment Zimbabwe so desperately needs."They (Zanu-PF ministers] are always pronouncing ultra-nationalist rhetoric and pseudo-socialist lines," economic planning and investment promotion minister Tapiwa Mashakada said yesterday.

"Moreover, their rhetoric is based on hate speech ... which is not government policy. We have to work harder to improve our country's image." Official figures put the number of white- and foreign-owned companies still operating in Zimbabwe at around 500.

After pressure from South African president Jacob Zuma, Mr Mugabe earlier this month appeared to have agreed to drop his plans for presidential elections this June. But Zanu-PF officials last week upped calls for them to be held this year after all. Rights groups fear a repeat of the election violence of March-June 2008.