Zimbabwe's Mugabe pursues 'indigenisation' policy

BULAWAYO, Zimbabwe (AFP) - Zimbabwean President Robert Mugabe's party Friday vowed to press ahead with a controversial "indigenisation" policy forcing foreign firms to cede a majority stake to locals.

"Zimbabwe cannot achieve any real and sustainable democracy for as long as its natural resources remain in the hands of foreigners and serve foreign interests and economies," said a document handed to some 3,000 delegates at a ZANU-PF conference in the second city Bulawayo.

A large number of foreign firms missed the September 25 deadline to submit proposals to government on how they plan to release their shares by 2015.

"ZANU-PF indigenisation policy is a legitimate affirmative action measure to benefit indigenous citizens disadvantaged by unfair discrimination on the grounds of race and denied participation and benefit in their economy," the document said.

Mugabe's partner in the unity government, Prime Minister Morgan Tsvangirai, has warned that the law would discourage investment.

But the document entitled "Understanding the Indigenisation and Economic Empowerment Programme" argues that the law is meant help Zimbabweans "control and determine the exploitation of their resources."

In his opening address on Thursday, Mugabe who is the staunch supporter of the regulation said the indigenisation policy would not be reversed.

"The resources must revert to us the true owners. They are God given, the only ones we can ever have as Zimbabweans," he said.

The law targets companies valued at 500,000 dollars (369,000 euros) or more, particularly mining and financial firms.

A few companies, including British owned Old Mutual and giant mining firm ZimPlat have struck deals with the state on how to distribute the shares.