20110327
reuters

HARARE (Reuters) - Zimbabwean President Robert Mugabe on Sunday vowed his party would not back down from its controversial drive to force foreign-owned companies to sell majority shareholdings to local blacks.

Addressing supporters at the burial of a senior government official, Mugabe said his ZANU-PF party regarded black economic empowerment as a key part of the national liberation struggle, dismissing fears it would hurt economic recovery.

"We are not stopping," he said to cheers.

"So we are saying we must take over our country and those partners, those outsiders, who want to work with us must do so as junior partners. We are the senior partners, no more the junior partners," he said.

"Those who also want to work for us, they are welcome."

Mugabe has said previously ZANU-PF will nationalise firms from countries that have imposed sanctions on Zimbabwe, arguing they cannot operate freely while Western powers punish his party over charges of rights abuses.

These threats have added to the worries of foreign investors in the resource-rich country, which has introduced a law specifying 51 percent of firms worth over $500,000 should be owned by black Zimbabweans under a five-year programme.

"We are not afraid to declare our programme publicly. We are saying very openly, 'Britain and America, this is our country and we have a right over its resources and we are taking control now'," Mugabe said.