Mugabe threatens to seize foreign firms over sanctions

Harare: Zimbabwe will transfer ownership of all foreign-owned firms that support Western sanctions against President Robert Mugabe's government to locals and investors from "friendly" countries, a state newspaper reported on Sunday.

The Sunday Mail said Zimbabwe had begun auditing the ownership of Western firms in the country as part of a black empowerment drive.

The move is also aimed "to counter the possible withdrawal of investment under sanctions imposed and proposed by Britain and the US."

The Sunday Mail paper said preliminary results of Zimbabwe's audit of foreign investments showed that 499 companies enjoyed British investments.

The audit also found 353 firms with shareholders from other European countries, the weekly said in a story largely attributed to unnamed government sources.

A high-ranking government source told the Sunday Mail that these companies would be targeted for takeover by local investors and companies from the Far East "should they heed calls by the US and European governments for them to disinvest from Zimbabwe."