Ultimatum for foreign shops
Saturday, 18 May 2013 01:05
Lloyd Gumbo Herald Reporter
GOVERNMENT has given all businesses operating in reserved sectors of the
economy under the Indigenisation and
Economic Empowerment Act a six-month ultimatum to apply for indigenisation
compliance certificates.
According to the Act, reserved sectors are agriculture (primary production
of food and cash crops), transportation, retail and wholesale trade,
barbershops, hairdressing and beauty salons, employment and estate agencies
and grain milling.
Other sectors are bakeries, tobacco grading and packaging, tobacco
processing, advertising agencies, milk processing and provision of local
arts and crafts, marketing and distribution.
The ultimatum follows yesterday’s gazetting of regulations that make it
mandatory for all locally and foreign-owned firms in reserved sectors to
apply for indigenisation compliance certificates .
No foreign-owned company would be given the licence.
This means clothing shops owned by non-indigenous Zimbabweans would be
closed.
Pressure groups want the Government to act swiftly because citizens were
being elbowed out of the clothing industry where Nigerians, the Congolese,
and the Chinese own most of the shops.
Youth Development, Indigenisation and Empowerment Minister Saviour
Kasukuwere announced the regulations in yesterday’s Government Gazette
following consultations between his ministry and the National Indigenisation
and Economic Empowerment Board.
“Every business that commenced operating in any sector of the economy
reserved for indigenous Zimbabweans under the Third Schedule on or after the
fixed date shall apply for an indigenisation compliance certificate
commencing from the gazetting of these regulations.
“Any person who operates a business referred to in subsection (1) without an
indigenisation compliance certificate with effect from January 01, 2014
shall be guilty of an offence and liable to a fine not exceeding level four
or to imprisonment for a period not exceeding three months or to both such
fine and such imprisonment.”
The regulations further state that the minister may direct any licensing
authority to revoke, suspend or cancel the operating licence of a business
operating in contravention of the regulations.
Any official of NIEEB, the Ministry of Youth Development, Indigenisation and
Empowerment, law enforcement agents or any other person mandated by the
minister of Youth Development, Indigenisation and Empowerment in writing may
access any premises of any business reserved and demand any relevant
documents for purposes of verifying compliance.
The regulations say any person who may interfere with this exercise would be
guilty of an offence and liable to a fine, imprisonment for a period not
exceeding two years or both fine and imprisonment.
NIEEB general manager for compliance Mr Zweli Lunga told The Herald that the
regulations were meant to fish out foreigners who are operating in these
reserved sectors.
“All businesses operating in the reserved sectors must apply for an
indigenisation certificate. Those who won’t produce that certificate by
January next year won’t be allowed to operate.
“We are giving ourselves six months to process those applications. We will
only give indigenous Zimbabweans because these are sectors we feel do not
require huge capital investments.
“Foreigners who apply will be turned down and we will ask them to close
shop,” said Mr Lunga.
This means that most of the clothing shops owned by non indigenous
Zimbabweans would be closed.
Several pressure groups have already called on the Government to implement
the Act in reserved sectors of the economy saying they were being squeezed
out of the clothing industry as several Nigerians and Chinese own most of
the shops across the country.
He said foreign-owned restaurants that do not cook local food would continue
to operate while transport companies whose headquarters are outside the
country would also be considered for exemption.