Find local partners, foreign shops told

via Find local partners, foreign shops told 31/12/2013 by AFP NewZimbabwe

ZIMBABWE will from New Year’s Day ban foreigners from owning a majority stake in a host of businesses from bakeries to beauty salons, a cabinet minister said Tuesday.

Foreigners will only be allowed to own minority stakes in the affected businesses if they have local partners, and will be given between four and five years to comply with the new law.

“We are saying from January 1, 2014, we will not be issuing foreigners licences in areas reserved for locals,” indigenisation minister Francis Nhema, told AFP.

“Foreigners who are already operating in those areas reserved for locals should seek indigenous partners to buy shares,” said Nhema.

“Likewise locals are free to seek foreign partners as long as the local retains their majority shareholding.”

The ban will also include estate agencies, grain mills, retail outlets, milk processing plants, transport and valet services.

Nhema said foreign-owned businesses should hand in plans on how they intend to comply.

“In some areas, they will be given four years in some areas, five. It all depends on the area and individual circumstances,” he said.

“Wherever there are problems we can always discuss and see how we can help each other. It’s all about creating employment and empowering indigenous Zimbabweans. There is no victimisation,” said Nhema.

Zimbabwe brought in indigenisation legislation in 2010 that compelled foreign firms including mine owners to cede majority shareholding to local investors.

A number of foreign mines have complied with the law, which the government says seeks to empower local blacks who suffered exclusion under British colonial rule.

Opposition leader Morgan Tsvangirai says the law will benefit businesspeople aligned to veteran President Robert Mugabe and scare potential investors.

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10 comments on “Find local partners, foreign shops told
  1. Nyoni says:

    Are those “ZIMBABWEANS” WHITE, MIXED RACE, INDIAN ALLOWED TO OPERATE AS WELL. If not that is racist.

    • Jrr56 says:

      The law says indigenous Zimbabweans. Not sure if that is 100% indigenous or more than 50% indigenous. Not sure if indigenous means 2nd, 3rd or 4th generation Zimbabwean or is based on colour. It is also supposedly based on if you were advantaged under the time of Smith or disadvantaged. Another very complicated issue that corruption/party allegiance can come creeping into. Can a third generation white person who voluntarily exiled himself rather than join the army under Smith be categorised as disadvantaged? It is all very confusing which makes for corruption and party politics.
      Nhema has to tread carefully now as he has threatened the Chinese (Bob’s new partners) and Nigerians (amongst other African economic refuges) who are the new shop holders. By doing this he created a situation that Xenophobia can flourish (as in SA)and it will cause a back lash where Zimbabweans have also escaped as economic refugees. That is what he is now trying to avoid. Time will tell…

  2. Rukweza says:

    Zimbabweans are racist but they are quick to point at other african countries like mzansi,xenophibia is their second name when they started the system of labelling anyone who was born in zim with one of the parents having born outside zimbabwe as alien

  3. Sekuru Mapenga says:

    All sorts of Zimbabwean citizens became ‘foreigners’ when Mugabe introduced the dual nationality act in order to disenfranchise groups who were likely to vote against him.
    No doubt there will still be classed as ‘foreigners’ when Mugabe needs to extend his system of patronage by dishing out other peoples’ assets.

  4. diaspora says:

    What if we get the same or worser treatment kuno kuforeign land.this is utter rubbish regai munhu weganda dema asununguke as long ari muAfrica yababa marongero emadhara aya ane marepurcusions this is what I call non-violent xenophobic attack, it seems as if maleaders edu ane bitterness and according to Freud the father of psychology , they need psychotherapy.Sometimes maitiro edu haaratidze kufunda its like taakutokuruirwa ne the majority of illiterate nations paleadership and proper role playing in the society .apa vakuru maronga pachBritish chamunogarosvoara, ndihwo hupambe pfumi huri pachena dzidzai kugara navamwe zvakanaka

  5. Charles nykadzino says:

    Don’t be pressured to go into any partnership unless it makes economic sense. Keep your cool and just close shop if need be, there are many places on the African continent where free business thinking Business are welcome. You will succeed with far better returns than waste your time in Zim. The same zimbos where there with their eyes open when you set up shop. They are just blood sucking parasites led by ZANU PF. The failure to implement the ultimatum is not out of kindness. They simply have no capacity to do so. They are just blowing hot are.. Just stay put.

  6. Joboringo says:

    Smith resime offerd great benefits best education healthcare the roads you a using tdy many to name now mugabes generation now known for robberies world over thats your benefit

  7. GBZ says:

    ONCE AGAIN
    You cannot do it, run it, build it, make it, or invent it, so make a law to steal 51% so you own it and leave the people with the ability only 49% so that they can hand you 51% of the profits on a plate!! Go teach your granny to suck eggs Mr Nhema, you are a blithering idiot and a leach!

  8. Kuakwa Katiyo says:

    At first it looked like Nhema was going to be the voice of reason. That he had been put there so save the regime face and reverse the unwise policy. Then China-masa complained that they were no speaking with one voice. Now they are all singing from the same stupid song. The country is fukked up for good.

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