Zimbabwean President Robert Mugabe has unveiled proposals whereby the national government could take control of platinum mining companies.

At the opening of the country's parliament, Mr Mugabe proposed legislation which would compel private companies to sell 51 per cent of their shares to indigenous Zimbabweans, in a move that would pave the way for the government to assume control of mining companies and other foreign firms.

The clause, which forms part of the Indigenisation and Economic Empowerment Bill, becomes active in the event of firms undertaking any restructuring, merger or acquisition activity.

Under the terms of the bill, indigenous Zimbabweans are defined as those who have been racially discriminated against and disadvantaged prior to the country attaining independence in 1980.

The legislation would also empower the government to set up a National Incomes and Pricing Commission which would control wages and prices.

News of the proposals comes as Zimbabwe's economy is struggling under the weight of hyperinflation of prices, with economists cited by the Financial Times putting the current rate of inflation at around 6000 per cent.

Sources:

Mugabe's bills pave way for takeovers, 24/07/07 http://www.ft.com/cms/s/40448d66-3a0b-11dc-9d73-0000779fd2ac.html

Mugabe vows to save sick economy 25/07/07http://news.bbc.co.uk/1/hi/world/africa/6913148.stm

Ÿ Adfero Ltd