The Mugabe government faces a cash crisis, just as Zimbabwe has been hit with a severe drought deemed a “state of disaster” by the authorities.
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“… I know others said those things under the influence of toxic substances, so it is not anything that pays anybody to repeat certain things”.
But Zimbabwean economist John Robertson says the government isn’t actually ready to take over diamond extraction.
But Mugabe, who has ruled the country since its independence in 1980 despite reports of his ill-health, maintained his dogged anti-Western line. Last month, Mugabe gave foreign mining companies 90 days to stop work and leave the country.
Mugabe said only $2 billion had trickled into government coffers out of $15 billion generated by the industry, though he gave no timeframe for the figures.
Mugabe said on Monday in Harare that this was a serious warning to feuding members of the ZANU-PF party and that he is still in charge after 36 years in power.
Responding to questions during a two-hour delayed annual interview with the country’s state broadcaster, the Zimbabwe Broadcasting Cooperation (ZBC), Thursday, usually broadcast on the eve of his birthday, was as expected, full of jokes but also insightful on issues of national concern.
“When we went to (Zanu-PF elective) Congress in 2013 and the people said you are the candidate”, he explained.
President Mugabe alleged that the foreign mining companies were stealing billions from Zimbabwe.
The government offered the mining companies a 50% stake in the new state-controlled company that will have a diamond mining monopoly, but that 50% will be divided among all private companies according to the size of their operations.
‘The move is bringing uncertainty to investors.
Hosting one of the world’s largest platinum reserves, Zimbabwe was the eighth largest diamond producer in the world with over 4 million carats in 2014.
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When asked whether the eviction of the Chinese companies was straining bilateral relations with Beijing, Mugabe said he foresaw no problem. “Rio Tinto believes that the future of these assets can be best managed by entities with existing interests in Zimbabwe”, the company said in the statement announcing the sale of its diamond and coal mines.
