Harare — NESTLé, an international food and beverages giant, has become the first foreign company to openly hit out at the West's illegal economic sanctions regime saying an ongoing spirited campaign to have it shut down its Zimbabwe operations will not and will never lead it to close shop.
Over the past week, Western media organisations have carried out a co-ordinated effort to harass Nestlé into pulling out of Zimbabwe because one of its milk suppliers is Gushungo Farm, owned by the First Family.
However, Nestlé, which is headquartered in Switzerland, has hit back saying it would never consider closing shop in Zimbabwe just because some individuals in the West do not like President Mugabe.
In a statement issued on Sunday, Nestlé said: "Nestlé is a truly global company which operates in almost all countries in the world in a wide variety of political settings.
"Despite the ongoing crisis in Zimbabwe, Nestlé has not considered moving its operations out of the country.
"By providing basic food products to Zimbabwean consumers, Nestlé aims to meet the needs of the local population, many of whom are vulnerable and disadvantaged.
"Had Nestlé decided to close down its operations in Zimbabwe, the company would have triggered further food shortages and hundreds of job losses among its employees and milk suppliers in an already very difficult situation."
Sections of the international media have, since the start of this week, been urging consumers to boycott Nestlé products until the company either stops procuring milk from Gushungo Farm or completely pulls out of Zimbabwe.
In its position statement, the company added: "Nestlé is a fully-fledged member of the local community in Zimbabwe, employing 200 people there and providing additional employment for many hundreds of milk farmers and other suppliers."
Switzerland is not a member of the European Union -- which has sanctions on Zimbabwe -- and is not bound by the economic embargo.
An observer yesterday said: "The campaign makes it evident to those, if there are still any, who were doubting that the declared and undeclared sanctions are not targeted at all.
"It is a very systematic process that has as its ultimate objective the desire to squeeze Zimbabweans and make them revolt against a constitutionally-elected Government."
Yesterday, Internet news reports quoted United States Assistant Secretary of State Johnnie Carson as saying Washington was considering extending its economic sanctions regime on Zimbabwe.
This is despite the fact that Sadc, Comesa, the African Union, the Non-Aligned Movement and the recent Africa-South America Summit -- who together constitute over half the world's population -- have declared that the sanctions should be lifted forthwith.
America and the EU have for years claimed that the sanctions are targeted at specific individuals, a claim that has been roundly discredited.
The US sanctions law, the so-called Zimbabwe Democracy and Economic Recovery Act, enforced through a series of presidential executive orders, has sanctioned American companies from doing business with Zimbabwe or risk facing punitive measures.
The sanctions regime also bars multilateral financial institutions in which the US has a representative from approving any extension of funds to Zimbabwe.
In addition to this, Zimbabwean companies like Ziscosteel, ZB Bank and the Zimbabwe Mining Development Company are sanctioned by the US government and have had their overseas accounts frozen.
In 2005, Africa University -- which is ironically funded by American Methodists -- revealed Microsoft had refused to supply them with key software on the instruction of the US government.
Zimbabweans resident in their home country are also barred from opening accounts with California-based PayPal, which is the largest online transacting system.
The company has told Zimbabweans that they were instructed by the US Treasury not to allow them to open accounts.
The US Treasury administers the sanctions regime for Washington.
Another US company, HJ Heinz, pulled out of Zimbabwe in September 2007 after it was instructed not to buy raw materials for the production of cooking oil from "farms stolen from white farmers".
In Europe, Barclays Bank was in 2007 investigated at the instigation of British authorities and the MDC for allegedly lending £750 million to some Cabinet min-isters.
The following year Standard Chartered Bank was also investigated for allegedly breaching the sanctions regime by supporting Zimbabwean companies and for generally operating in the country.
Immense pressure was piled on the banks to halt their local operations.
However, the findings of those investigations were never revealed, suggesting that the authorities were motivated by an agenda to weaken Zimbabwe's economic standing.
In July 2008, Tesco -- one of the largest retail chains in the world -- ceased buying farm produce from Zimbabwe because it was coming from land acquired from white commercial farmers for resettlement purposes.
The company revealed that it had been pressured by the British government and politicians from various parties not to support Zimbabwe's new black farmers.
The cancellation prejudiced Zimbabwe of £1 million in potential yearly revenue.
That same month, Giesecke & Devrient of Germany abruptly stopped supplying Zimbabwe with banknote paper after an official request from that country's development minister.
The move precipitated an acute shortage of bank notes in Zimbabwe.
Comments 1 to 5 of 26 Post a comment
Nestlé Defies Calls to Pull Out of Country. So be it. But the truth is that the international giants should not prop criminals. So Herald staff do not twist your wits.
The trouble with Disgrace she will use every trick in the book to amass wealth !!!
I have to say this article is the biggest load of bollocks I have read in my entire life.
Farirai Machivenyika and Mabasa Sasa who wrote this article have to be the dumbest people alive! Seriously!
The Herald does it again!
All africa has just announced "Nestlé, has announced that it is to stop buying milk from a dairy farm owned by Zimbabwean first lady Grace Mugabe."
Whereas the Herald states: 1) NESTLé has become the first foreign company to openly hit out at the West's illegal economic sanctions regime Doesnt seem to be the case to me! Sounds like the Nestle is putting on their own sanctions.
Also - why the hell does Grace Mugabe have so many farms! Its a disgrace! She is nothing but a theif!
And the Herald quotes an "Observer" as saying "The campaign makes it evident to those, if there are still any, who were doubting that the declared and undeclared sanctions are not targeted at all. It is a very systematic process that has as its ultimate objective the desire to squeeze Zimbabweans and make them revolt against a constitutionally-elected Government."
Who is this anonymous observer!? Sounds like a stupid brainwashed fool to me.
And according to the Herald, the that Sadc, Comesa, the African Union, the Non-Aligned Movement and the recent Africa-South America Summit -- who together constitute over half the world's population -- - more nonsense!
It states: "America and the EU have for years claimed that the sanctions are targeted at specific individuals, a claim that has been roundly discredited."
BY WHO! MORE BRAINWASHED FOOLS?!
Also, according to this stupid paper, ZIDERA "has sanctioned American companies from doing business with Zimbabwe or risk facing punitive measures" - again nonsense! American companies can still trade with who the want, there is nothing in ZIDERA preventing the US companies from trading with anyone!
The Herald states that Zidera "bars multilateral financial institutions in which the US has a representative from approving any extension of funds to Zimbabwe." Again nonsense!
Multilateral funds can do what they want, the US must vote against it, but the US are not in control of the IMF etc! You can tell by the fact that $500m USD was released by the IMF even though ZDERA is still in place!
Farirai Machivenyika and Mabasa Sasa deserve to be shot for being so stupid.
Awt, you do not live in Zimbabwe that is why you can go on top of the mountain and shout all this unproven hogwash. Ask us the business community, it has not been easy trying to deal with the Western world, because for your own information, not everybody understands ZIDEIRA in the USA and elsewhere. Some companies in the western world once they hear the word zimbabwe, they will tell you that you are under sanctions, i asked you about Zimbank and you decided to ignore it, so it is not as simple as you want to theorise it, it is a reality. Contrary to the intentions (targetted as you call them) the sanctions have affected everybody including apolitical people.
TD, your business community has supported criminal Mugabe in its quest for blood profits. You have continued to pay bribes to Zanu-PF just to keep your business afloat; you have engineered shortages of supplies of basic goods just to further exploit the suffering masses, on top of Mugabe victimizing the very people you want to defend! Hypocrisy at its best??
You must accept some sacrifices in the current fight to cleanse Zim of criminal Mugabe & his armed thugs. Your business will flourish in a democratic environment, not under the fear with which lunatic Mugabe is ruling!!
Explain to us how Grace became owner of several farms when millions of farm workers are still awaiting to receive small plots to work & live on? Explain how millions of farm workers had to seek refuge in neighbouring countries? Is it because Grace chvsed them away in order to grab the large tracts of land she now owns?
Her revenues from the farms are called "blood money". How disgraceful?
The international community has every right to fight those who feed on such income to become filthy rich to be able to buy luxurious apartments for their children abroad when their own citizens have to scrub dustbins in sa in order to survive!
Join the fight to dislodge the criminal lunatic & his armed band!
You will live & lead a better life thereafter!
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