Zimbabwe parliament to mull nationalization plans

The opposition wants a new constitution.

"We have said this is against the spirit of the SADC initiative and we will oppose such legislation," Nelson Chamisa, spokesman for the larger of the MDC's wings, said.

Despite criticism over his policy of seizing white-owned farms for blacks, Mugabe is pushing ahead with plans to transfer ownership of all foreign-owned businesses, including mines, into local hands.

Zimbabwe's economy has hit even more turbulent times after the government ordered a price freeze in June to stem inflation, leaving shop shelves empty of basic goods such as milk, maize-meal, flour and meat.

Analysts say Mugabe could use the economic empowerment law to reward supporters as he seeks re-election in 2008.

Mugabe portrays himself as a victim of Western sabotage and has suggested Britain failed in a bid to lure Zimbabwe's military to help topple him as punishment for the land seizures.