Africa Brief: Zimbabwe farmers, Airbus, Barclays Zimbabwe, and more
Farmers fight on in Zimbabwe land-grab case
The fight between farmers and the state of Zimbabwe for land has been a prolonged battle, widely seen as executive self-help. The SADC (Southern African Development Community) tribunal was set up for individuals who had exhausted their country’s domestic courts, which was later suspended.
It was later decided to amend the protocol for the tribunal which now disallows individuals from approaching it, though it has been much condemned.
For the full story, read Farmers fight on in Zimbabwe land-grab case by Franny Rabkin, published in Business Day on 03/01/2013.
Aircraft maker flight-tests plane it wants to sell to SA
Airbus Military has started testing their flight which is being proposed to the SA Air Force. Relations between the Ministry of Defence and Military Veterans and Airbus turned sour when the former defence minister, Lindiwe Sisulu cancelled the purchase of military transporters two years ago.
The auditor general was concerned regarding the fact that the delivery of the aircraft was 4 years behind when prepayments for the purchase had already been made. The aircraft is seen to be very versatile in various transport roles.
For the full story, read Aircraft maker flight-tests plane it wants to sell to SA by Hopewell Radebe, published in Business Day on 03/01/2013.
Merger omits Barclays Zimbabwe over investor anxiety
Investor anxiety is the cause for the decision to exclude Barclays Zimbabwe from the merger of Barclays Africa and Absa Group. The Zimbabwean subsidiary will be managed under the One Africa Structure.
Barclays Zimbabwe however does not feel that the indigenisation programme has caused this exclusion. Minister Saviour Kasukuwere has put pressure on the 4 foreign-owned banks in Zimbabwe to relinquish a controlling interest to locals, there are however concerns that this may hurt the recovery prospects of the banking sector.
The indigenisation programme has been the corner stone for President Mugabe’s re-election campaign this year. After the merger the Absa Group will be renamed to Barclays Africa Group.
For the full story, read Merger omits Barclays Zimbabwe over investor anxiety, published in Business Day on 04/01/2013.
Nestle in Zimbabwe for long haul
Nestle has invested $12m in its Zimbabwean operations last year even though there was uncertainty regarding its future as a result of the indigenisation programme. After a previous run in with the government Nestle has been operating carefully.
Nestle has continued operations in Zimbabwe for the past 53 years. According to analysts the tight liquidity crunch and increased cost of borrowing, with unreliable water and power supplies will bring about problems for the company
For the full story, read Nestle in Zimbabwe for long haul by Tawanda Karombo, published in Business Day on 04/01/2013.
Zimbabwe to halt seizure of some farms, says minister
A senior minister in President Mugabe’s Zanu (PF) party has announced an end for the seizure of farms which are protected under the Bilateral Investment Promotion and Protection Agreement, in order to prevent the state’s liabilities from increasing. Under Zimbabwean law, the government is allowed to acquire such farms, however the government has taken a decision not to settle persons on farms covered by the agreement.
This will result in the indigenisation campaign slowing down. Land seizures had begun since 2000, but only a group of 40 Dutch farmers have been able to successfully sue the government.
For the full story, read Zimbabwe to halt seizure of some farms, says minister by Ray Ndlovu, published in Business Day on 04/01/2013.
South Sudan holding up oil exports
Oil exports will be delayed till mid March by South Sudan, even if all security conflicts are resolved with the new African republic, as Sudan and South Sudan failed to agree on how to secure their border dispute. Oil reliant economies have been in dispute with South Sudan for shutting down their crude output, resulting negatively on these economies.
Diplomats do not anticipate a quick recovery between the two sides, due to the conflicts between the two countries.
For the full story, read South Sudan holds up oil exports by Carl Odera, published in Business Day on 04/01/2013.