via Foreign shop owners face fresh threats of arrest | SW Radio Africa by Alex Bell on Friday, November 22, 2013
Foreign shop owners have once again been threatened with prosecution if they do not comply with Zimbabwe’s indigenisation laws by the end of this year, being told to relinquish their businesses or be jailed.
This latest ultimatum was voiced by the Secretary for Youth, Indigenisation and Economic Empowerment George Magosvongwe who told a parliamentary committee meeting on Thursday that the foreigners who defied the law would be prosecuted.
“I confirm that some non-indigenous entities are still operating in the reserved sectors and there is a deadline (of) January 1 for them to comply with the requirement to relinquish their holdings in that sector…and we are putting in place measures for enforcement in the event that they do not comply,” said Magosvongwe.
Magosvongwe also said that the ZANU PF government was in the process of identifying indigenous Zimbabweans who would take over ownership of those businesses in the particular sectors.
Under the country’s Indigenisation and Economic Empowerment Act, foreigners operating in the ‘reserved sector’ are not welcome, with the law making it mandatory for the business owners to produce compliance certificates. The certificates are only eligible for indigenous Zimbabweans.
This requirement was first gazetted in May this year, with foreign traders being warned about the penalty they faced if they did not comply.
According to the Act, reserved sectors include agriculture, transport, retail, barbershops, hairdressing and beauty salons, employment and estate agencies, bakeries, tobacco processing, advertising agencies and even arts and crafts provisions.
Economist Masimba Kuchera told SW Radio Africa on Friday that the threats “follow the pattern of how this government deals with investors.” He said the ultimatum is unrealistic, and does not allow for enough time to prepare locals to take over the sector.
“It would be better for the government to build local capacity first, because if they chase out foreign traders without ensuring the capacity and resources are there for locals, then it will be very difficult for local traders to take over,” Kuchera said.
COMMENTS
They say have identified the new zanupf beneficiaries already!!!!!!! Talk about a criminal mafia regime
Pray tell us who is indigenous and who is not. This sounds like a protection racket..
First the farms, then mines now small businesses. Next is peoples homes, then car and maybe your wife.Time for all sane people to start heading to Zumas border.He asked for it when he congratulated the election and diamond thieves.
It’s amazing to say the least. How did these people establish these businesses in the first place? Who authorised them to operate? Was the ZANU PF Govt waiting to pounce on these business once they were established? The economy is already crippled and barely meeting people’s needs yet there is this grabbing to come.
It’s amazing to say the least. How did these people establish these businesses in the first place? Who authorised them to operate? Was the ZANU PF Govt waiting to pounce on these business once they were established? The economy is already crippled and barely meeting people’s needs yet there is this grabbing to come. What learnings as a country have we picked from the Land invasions and the rest? It looks like most of their policies and approaches to improving the economy are contradictory and counter productive.
Who is going to identify the people to take over these businesses? What criteria is going to be used to select the beneficiaries of this loot? Varume ka nyika yawora iyi, for good.
One can hardly believe it.
They want to punish the people that can help us. Zanu is determined to destroy this economy.
IT IS ALREADY DESTROYED, DON’T WORRY.
See today’s editorial in the Times
The only thing is zanupf wants to create their own capitalist class.dominating industrial and political power.so as to retain power for hundreds of years.there is no concern for the suffering populace as long as there are putting money in their pocket.its a thorn issue for the powerless.