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Zimbabwe's Elections 2013 - Index of Articles
party vows to boost black ownership of Zimbabwe economy
View this article
on the Reuters website
President Robert Mugabe's Zanu-PF party said on Tuesday it would
increase black ownership of the economy in the next five years after
election victory, adding to investors' concerns about the party's
But the central
bank sought to assuage worries of an imminent re-introduction of
the local dollar, abandoned in 2009 after being rendered virtually
worthless by hyperinflation.
The stock exchange's
main Industrial Index shed 1.7 percent, extending Monday's 11 percent
slide, as investors on the $5 billion Harare bourse digested the
extent of the Zanu-PF win, which puts it in position to enact laws
and change the constitution at will.
The local unit
of Barclays Plc, Barclays Bank Zimbabwe, plunged 20 percent and
top hotelier Meikles Limited was down 18.75 percent.
Before the July
31 election, the index hit a series of highs on hopes Prime Minister
Morgan Tsvangirai might unseat the 89-year-old Mugabe at his third
Zanu-PF ran full-page advertisements in newspapers saying its crushing
election win was an endorsement of "black economic empowerment"
plans that target foreign-owned companies including banks and mines.
of Zimbabwe have given President Robert Mugabe and Zanu-PF a clear
mandate to transform the economy through indeginisation and economic
empowerment," the party said.
next five years, Zimbabwe is going to witness a unique wealth transfer
model that will see ordinary people take charge of the economy."
set its eyes on 1,100 foreign-owned firms.
It also pledged
to leverage mineral reserves ranging from gold to diamonds to platinum
to raise money to prop up an economy still emerging from a decade-long
also fear reintroduction of the Zimbabwe dollar, a possibility alluded
to by Mugabe and senior Zanu-PF official Patrick Chinamasa, who
called the 2009 move to the U.S. currency a "strategic retreat."
dollar anytime soon
Bank governor Gideon Gono said the local currency would not be introduced
anytime soon, adding that when it is adopted, the local unit would
circulate alongside the greenback and South African rand.
are no plans whatsoever, within and outside the bank, for the immediate
or near-term re-introduction of the Zimbabwe dollar into our system,"
Gono said in a statement.
over the industrial printing of the Zimbabwe dollar currency to
cope with hyper-inflation of 500 billion percent. His last five-year
term as governor ends in December.
Movement for Democratic Change (MDC) party is challenging Mugabe's
victory in court. The legal challenge should be made by Friday and
says the courts must rule on the case within 14 days.
Mugabe be sworn
in only after the courts give the all-clear.
With state revenues
dwindling due to a pre-election growth slow-down, economists say
the new administration will face immediate spending pressures, particularly
from poor farmers demanding seed and fertiliser for the September
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