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