Zimbabwean firm says U.S. sanctions affect food security

A Zimbabwean company has slammed the recent sanctions imposed by the U.S. against its two fertilizer firms as "retrogressive", saying it could affect the country's food security.

The U.S. Office of Foreign Assets Control this week put Chemplex Holdings and Zimbabwe Fertilizer Company -- both owned by the Industrial Development Corporation of Zimbabwe (IDCZ) -- on its sanctions list.

IDCZ spokesperson Derek Sibanda on Thursday confirmed the sanctions in a phone interview with Xinhua, saying the U.S. move was meant to "derail Zimbabwe's efforts to ensure food security".

Sibanda alleged the companies were the sole fertilizer producer in the country. "Clearly this shows the U.S. is on a mission to destabilize the government."

The sanctions come at a time when Zimbabwe is suffering one of its worst drought in recent years.

The spokesperson said the sanctions would severely affect the companies' efforts to get offshore loans for working capital and recapitalization.

The companies would also be affected in terms of engaging potential investors, getting money paid by customers and even ordering raw materials, he said.

The European Union and the U.S. imposed sanctions on Zimbabwe in 2002 and 2003 respectively, citing alleged human rights violations by the Zimbabwean government, which Harare denies.

However, the EU has eased its sanctions over the years and now only maintains them on President Robert Mugabe and his wife Grace, as well as a state arms firm.

The U.S. still has 98 individuals and 68 entities linked to Harare on its sanctions list. It recently removed sanctions on two Zimbabwean financial institutions but renewed those on Mugabe. Endit