One month ultimatum for foreign business owners | The Herald

via LATEST: One month ultimatum for foreign business owners | The Herald November 21, 2013 by Lloyd Gumbo

ALL foreigners operating in reserved sectors of the economy are left with one month to comply with the Indigenisation and Economic Empowerment Act by vacating reserved sectors, a senior Government official told Parliamentarians this morning.Permanent secretary in the Ministry of Youth, Indigenisation and Economic Empowerment Mr George Magosvongwe told a joint meeting of the Parliamentary Portfolio Committee on Youth, Indigenisation and Economic Empowerment and the Thematic Committee on Indigenisation and Empowerment co-chaired by Gokwe-Nembudziya MP Cde Justice Mayor Wadyajena and Harare Metropolitan Senator Cde Cleveria Chizema respectively.

“I confirm that some non indigenous entities are still operating in the reserved sectors and there is deadline for  01 January for them to

comply with the requirement to relinquish their holdings in that sector,” said Mr Magosvongwe while responding to a question from Cde

Wadyajena on what Government was doing to ensure compliance.

“You will realise Mr Chairman that 01 January is a month to come and we are putting in place measures for enforcement in the event that they do not comply.”

Mr Magosvongwe said mechanisms have been put in place to ensure compliance even if foreigners were reluctant.

The January 01, 2014 deadline was gazetted on May 16, this year which saw Government giving all businesses operating in the reserved sectors of the economy under the Act a six-month ultimatum to apply for indigenisation compliance certificates.

The certificates will only be given to indigenous applicants.

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.

More details to follow

 

COMMENTS

WORDPRESS: 34
  • comment-avatar
    Charlie Cochrane 8 years ago

    ‘Agriculture:Primary production of food and cash crops’………………………………Yeh right! Ha ha ha ha ha ha ha ha ha ha.

  • comment-avatar
    Jenandebvu 8 years ago

    Madness again

  • comment-avatar

    So its all a myth Zimbabwe is actually producing enough to feed its starving millions, the stupidity is breathtaking!

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    Diego Zhaba 8 years ago

    Nyaya yekuda kutonga nechibhakera iyika, reaping where you did not sow is worsening the already precarious situation at hand. This is the approach that has scared investors, they will hold on to their financial resources that we desperately need.

    We keep watching from the terraces.

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    Nyoni 8 years ago

    I pray Indigenious means ALL THOSE BORN IN ZIMBABWE OTHERWISE THE LAW IS RACIST.

  • comment-avatar
    Sekuru Mapenga 8 years ago

    Next Zanu PF will command the trees to grow money instead of leaves..

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    Yep, it is pure racism through and through and through. They will probably admit it too! Ho hum. Nothing to be done but wait.

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    Oh, and those that do benefit are just corrupt so the business fails anyway. YOU CANNOT BE SO ROTTEN AND SO CORRUPT AND EXPECT THINGS TO SUCCEED. MAYBE YOU ARE RICH SO FAR, BUT LOOK AROUND YOU. WHAT DOES THE COUNTRY LOOK LIKE. ARE THERE JOBS? ARE THERE DECENT ROADS? ARE THERE THRIVING HOSPITALS? ARE THERE NO STREET KIDS? IS THERE NO RUBBISH ON EVERY PAVEMENT? ARE THE STORM DRAINS UNBLOCKED? DOES IT NOT BOTHER YOU? ARE YOU ALL A BUNCH OF PSYCHOPATHS, OBLIVIOUS OF THE SUFFERING AROUND YOU?!!! AND YOU BANG ON ABOUT POLITICAL THINGS INSTEAD OF RUNNING THE COUNTRY. YOU MAKE ME SICK TO MY VERY SOUL!!

  • comment-avatar
    Stingray 8 years ago

    This has happened before in african countries led by the likes of idi amin, jean bedel bokassa,milton obote,mobuto seseseko and of cause our dear leader

  • comment-avatar
    Zimbo 8 years ago

    You just gotta love these “reserved” sectors…. All it is telling the world, is that we are too useless and lazy to compete against a foreigner. We have to force the foreigners out, so we can “try & work”. Are we that useless that we are afraid of foreigners doing business? Just goes to show how useless we really are. Why is it that I can go and open any business I want in the UK / America, yet an American or Brit, can’t come and open any business here…? It’s because we are so scared that the foreigner will out perform us, maybe it’s because they have a better work ethic than we do…….

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    nesbert majoni 8 years ago

    This gangster called ZANU pf never learns. They forced the farmers from their farms in a similar way and now the country is hungry. Now they want to do the same to the few companies which are employing the luck Zims. Please God I think this is the time you must rescue us. We want a break.

  • comment-avatar
    gideon nkala 8 years ago

    Competition is healthy for business. Leave thriving foreign small businesses alone. Just start your own project if you have money. Stupid thieves surviving on nehandaconomics. When will you learn?

  • comment-avatar
    johnthom 8 years ago

    Are Chinese people indigenous from the minute they land in Zimbabwe? What of Malawians or all the Nigerian retailers?

  • comment-avatar
    Tapuwa Mukuruvambwa 8 years ago

    If loans with reasonable interest are given to locals , am sure they can do this buying and selling business.

    • comment-avatar
      Zimbo 8 years ago

      @ Tapuwa…. “Loans with reasonable interest are given to locals”…. So… once again we need to have better interest rates than foreigners…. because we are so useless that we cannot compete openly and fairly with a foreigner…… typical useless losers mentality. I totally agree with what Gideon said “Competition is healthy for business. Leave thriving foreign small businesses alone. Just start your own project if you have money. Stupid thieves surviving on nehandaconomics. When will you learn?”

    • comment-avatar

      Tapuwa there is a lot more to this than buying and selling.If you get continuous power cuts, water rationing, bad roads, in other words you can give out all the loans you want it will not help. Get rid of corruption and restore services is the first step to recovery.

  • comment-avatar
    Said Omar Ali 8 years ago

    I think the best could have been encouraging competition in business after empowering Zims. As it is now, I am afraid things will go terribly wrong. Examples abound; Iddi Amin did this in Uganda and the country went to its knees. Indigenisation is not a bad idea but requires collective understanding together with its attendant resources.

    • comment-avatar
      Zimbo 8 years ago

      We live in a global village…. Indigenisation regulations, just tell the world that we are useless and afraid of competition. Every man for himself and may the best man win on a level playing field. I for one, am not afraid of foreigners doing the same job as me, i can provide better service than they can. Guess my fellow countrymen are just useless when it comes to service, and are therefore afraid that customers would rather buy from a well run / friendly / pleasant foreign owned business………………………

  • comment-avatar
    gorongoza 8 years ago

    why do we always want everything for free? is this how we develop a country by making pple expect to be reach by grabbing and looting from others? How much longer will we have such a barabaric means to enrichment? At what point will it stop? Maybe we must just drive all foreigners out of the country and live happily ever after!

    • comment-avatar
      Zimbo 8 years ago

      Because we cannot handle competition……. simple as that!!!!!

  • comment-avatar

    With this kind of madness, imtelling you, people are going into the streets before March next year .Mark my words.Instead of focussing on real issues you target honest businesspeople.Can you please start by Sabot Transport.It owns more than 800 trucks ,operating in SA ,Zambia, Malawi.It is a foreign owned since its owner is Ruetenbech Guy.If you start by him , then follow Mahomed Moosa ,Bhadellsa, Desai .Then we will say there is no descrimination.This madness of segregating people , you are going to run away I tell you.Anyway its good because we know when Chombos and the greedy crew run away Zimbabwe will have more than 1000 farms to give to the real needy.Even white Zimbabweans will be welcome to apply.From the Kasukuweres Zimbabwe has got 12 farms .Saviour has 4 ,Dick has 3 ,Tongai has 3 and the oter two guys 1 each .So continue your madness.We are watching.

  • comment-avatar
    Boss MyAss 8 years ago

    The government of Zimbabwe must be encouraged to advance policies that promote a secure investment climate and good governance

  • comment-avatar

    This zanuism no different from nazism. I wonder where the Nazi are today. And the world watches. It’s all about the diamonds. The bible does day that towards the end the leaders are made mad. Here we go

  • comment-avatar
    Michael 8 years ago

    Indigenisation = Racism.

    Taking that which doesn’t belong to you = Theft.

    Therefore Zanu-Pf = Thieving Racists

  • comment-avatar
    Boss MyAss 8 years ago

    Their main problem is that no one trusts them and they have to move more openly and make firm commitments in public on many issues that they have previously vigorously denied or declared that they would never countenance. How does Zanu PF do a U turn on indigenisation or the role of white farmers in our crippled agricultural system; can they put the economy back on its feet if they do not do so – no one thinks that they can. So Ministers are stuck between a proverbial hard rock and the deep blue sea and most of them cannot swim.

    Nothing reveals the hard realities that the new regime faces than the question of corruption. In his opening speech to the 8th Parliament the President had attacked corruption and promised that it would be dealt with. The harsh reality is that no single Zanu PF leader of any stature could stand up to an audit of their assets and sources of the income that supports their lavish lifestyles. This exercise would have to be extended to senior Civil Servants and many senior Army Officers and other members of the security services.

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    Chitova weGona 8 years ago

    Zanu pf has no plan to extricate the country from this mess. They blame the weak and attack them leaving their thieving comrades free. The problem is not business people,it is the government policies and corruption at its zenith that are destroying the country. They can try anything but as long as such racist and xenophobic tendencies are not dealt with the country will continue to slide. Zanu yakaora! Where is diamond money? So Biti was right to tell the world that diamond money was not reaching treasury. Zanu will never solve the country’s unending problems because they went to war as fanatics! They had no people at heart but enriching themselves.

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    Do unto others........ 8 years ago

    Must these people close shop and leave immediately? How many of our citizens are operating in other countries? Whatever you do there will be consequencies.

  • comment-avatar

    I think robert mugabe and his minister are very sick?? Mark my words they won’t last for another year. These policies are implemeted by zanu pf people who doesn’t want robert mugabe anymore we are sick and tired with this old man. Mugabe he doesn’t understand that people are tired!!!!

  • comment-avatar
    Benny in maputo 8 years ago

    mozambique govt are planning to take equal measure against zimbabweans living in mozambique. But unfortuantely they suddenly discovered there is no single business here own by zim. They are all hookers. they don’t own even a shop. U can only find them at night in the streets of chimoi and beira even in maputo otherwise working as english teachers . So how could u do the business when all foregners depart?? Shame to ur goverment

  • comment-avatar
    Benny in maputo 8 years ago

    we Mozambicans are really enjoying the business services redering by foreigners living here especially those of our african brothers from kenya, guinee, nigeria tanzania and so on.

  • comment-avatar
    adam jones 8 years ago

    This is a zhing zhong policy only made in mugabeland. so much about FDI. Zanu yaramba munyika mayo!!!! zvema disnyongoro.

  • comment-avatar
    Boss MyAss 8 years ago

    ZANU PF should acknowledge that there will be no economic growth without political reforms. Donors who funded the inclusive government have stopped pumping in money because they need to see reforms first before committing themselves.There has never been ready cash in Zimbabwe. The country survived on donor funding during the tenure of the unity government and the liquidity crisis has come about because the same donors will not fund a government that is not democratic.Zimbabwe is facing a major financial squeeze as it seeks to raise funds to pay civil servants in an economy where revenues are thinning, while the unemployment rate hovers close to 90 percent.

    The government is desperately seeking an infusion of millions of dollars to shore up the country’s finances, four months after ZANU PF ‘won’ by a landslide victory.

    The relatively ‘stable’ economic situation under the previous unity government has been made worse after donors slashed funding pledges, due to concerns about electoral rigging and the slow pace of reforms. It’s feared the development partners could freeze more funds in the upcoming year if ZANU PF fails to speed up reforms.