Nigerians, Chinese Business Owners Face Arrest in January

via ZIMBABWE: Nigerians, Chinese Business Owners Face Arrest in January | ZimEye

Zimbabwe government has issued a warning to all foreigners operating businesses in sectors reserved for locals that they now risky prosecution if they do not give up by January, a report by State media reveals.

Youth, Indigenisation and Economic Empowerment secretary Mr George Magosvongwe gives oral evidence in Parliament yesterday flanked by director of Indigenisation Mr Godfrey Sigobodhla

All foreigners operating retail and wholesale businesses, barbershops, hairdressings, beauty salons, bakeries, employment agencies and grain milling which are classified as reserved sectors of the economy risk being arrested next month if they continue doing business.

The other reserved sectors of the economy according to the Indigenisation and Economic Empowerment Act are agriculture (primary production of food and cash crops), transportation, estate agencies, tobacco grading and packaging, tobacco processing, advertising agencies, milk processing and provision of local arts and crafts, marketing and distribution.

Secretary for Youth, Indigenisation and Economic Empowerment Mr George Magosvongwe told legislators yesterday that the foreigners who defied the law would be prosecuted.

He made the remarks when he, together with officials from his ministry, appeared before 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.

“I confirm that some non-indigenous entities are still operating in the reserved sectors and there is a deadline for January 1 for them to comply with the requirement to relinguish their holdings in that sector,” said Mr Magosvongwe while responding to a question from Cde Wadyajena on what Government was doing to ensure compliance in the sectors.

“You will realise Mr Chairman that 1 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 Government was in the process of identifying indigenous Zimbabweans who would take over ownership of those businesses in the particular sectors.

This, he said, was meant to avoid creating shortages when the foreigners leave.

“There is need to ensure that we don’t create shortages in the economy, but certainly the ministry is going to enforce the reserved sectors rule,” he said.

“And we will bring in the enforcement agencies from right across the Government departments and the local authorities to ensure that enforcement happens.”

The January 1, 2014 ultimatum was gazetted in May, making it mandatory for all locally and foreign-owned firms in reserved sectors to apply for indigenisation compliance certificates.

Only locals will be given those certificates.

Nigerians and the Chinese who flooded the country in recent years are set to be the biggest casualties as they set up shops dealing in various wares in almost every town.

The regulations stated that any person including locals who operate a business in the reserved sectors without an indigenisation compliance certificate with effect from January 1, 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.

Anyone person, according to the regulations, who interferes with the 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.

But the National Indigenisation and Economic Empowerment Board has already indicated that foreign-owned restaurants that do not serve local food would continue to operate, while transport companies whose headquarters are outside the country would also be considered for exemption.

Mkoba MP Mr Amos Chibaya asked what Government position was regarding the indigenisation of banks in the wake of divergent views on the issue.

Mr Magosvongwe said foreign banks operating in the country were holding money from Zimbabweans, hence there was need to guarantee citizens’ participation in the sector.

“Our position as a ministry is that the law requires the banks to indigenise,” he said. “The implementation matrix for the indigenisation of the banks is something that can then be worked upon.”

Mr Magosvongwe said banks were forthcoming with proposals that were positive, adding that they were working with the Reserve Bank of Zimbabwe with the intention to achieving the agenda of indigenising the sector according to the law.

Chiefs raised concern with the implementation of Community Share Ownership Schemes, saying they were not seeing the proceeds despite the fact that they sat in committees that were mandated to administer the funds.

Chief Musarurwa of Mashonaland East said they were made to sign symbolic cheques for Mashonaland East Community Share Ownership, but up to now no money had been disbursed despite claims on the ground that the money was disbursed.

Mr Magosvongwe acknowledged that some of the Share Ownership Schemes were yet to benefit since the companies had not yet disbursed the money.



  • comment-avatar
    ZimJim 9 years ago

    “All foreigners operating retail and wholesale businesses, barbershops, hairdressings, beauty salons, bakeries, employment agencies and grain milling which are classified as reserved sectors of the economy risk being arrested next month if they continue doing business.”


    Obviously there are ZANU PF ministers and party officials who are simply trying to dispose of their competitors!

    Competitors who provide a better, more competent service!

    And when these incompetent, greedy idiots do get rid of their competition , will they pay tax? Of course not.

    They’re “Government”….

    The shortsighted stupidity of ZimBOBwe goes on, and on….

  • comment-avatar

    But the chinks are sacred cows and honorary indigenous blacks!!!

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    nigirean 9 years ago

    i qoute:’now risky prosecution if they do not give up by January’
    If i may ask, if you catch a thief stealing do you tell say to him, if you dont stop steal you risk prosecution, or you simply move in, arrest and prosecute?

  • comment-avatar
    William Doctor 9 years ago

    I’d like to see zanupf arrest chinese nationals. It will never happen.

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    Africanson 9 years ago

    I see no madness in a government policy. If it is law it must be followed. Im my current country of residence i have to be guided by my work permit regulations.. I can not work im certain sectors. The same thing when i was in SA i had to be guided by my quota work permit regulations. Its common practice, certain sectors are reserved for locals. Other gvts actually come up with subdies to sanitise them from global competitiom
    . If zanu then takes over and fail to give the bus to the deserving people thats a crime. Otherwise whoever gave these foreigners access to reserved sectors must also be arrested. Where were the authorities when these foreigners set up shop? Law must be law, the same for evrybody. Madness is to allow a Nigerian to run a grindinh meal in Mutoko

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    Well done Africanson , why do you have to give such opportunities to foreigners , can’t we have our own people operating these shops and create a living out of it , please lets stop being too cheap , let the government do the job , people must not JUST hate ZANU PF and oppose good initiatives , they must bring sense out of their part of opposing

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      Zanu Pf Share The Money 9 years ago

      Interesting .. “can’t we have our own people operating these shops and create a living out of it”.

      We have given our own people farms to farm and earn a living out of it. But the results we are importing maize from Mr Sata’s farming. Scatter brain !!!

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    Chitova weGona 9 years ago

    When those foreigners as u call them were opening businesses where was the gvt? Give locals the start up kits so they can compete. Why do we always blame others for our shortcomings? So when they leave the market who will take over? U the chefs? Mismanagement runs in yo blood. All those locals employed in those businesses will be jobless in January? Think outside the box Magosvongwe and yo clowns!

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    Africanson 9 years ago

    You are saying something you have no clue about. Every country has laws. Israel is actually bundling out foreigners and deporting them without recourse. Saudi Arabia the same. I am in foreign land and they have laws I am observing. Unless if zim is doing something outside the law? I did not blame others. May be English is your tenth language. If a Nigerian is in Zimbabwe is he not a foreigner? Well what would you call him? What thinking outside the box are you talking about. You statements don’t sound knowledgeable. You seem to just off loading some statements you heard in the express train. You dont need to oppose for the sake of it dude. Go to college and get some education.

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    So if I was born in Zimbabwe and happen to be white but nevertheless Zimbabwean why must I give up my business that I started from scratch with my sacrifice my loans my talent. What am I supposed to do. Why did the government not make that clear at independent do we could have moved on. This is theft.

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      Chamutengure 9 years ago

      You are failing to understand something here, if you are white Zimbabwean fine. Your documents and everything will prove that you are not a foreigner. What is being said is, there are certain business sectors reserved for locals and not foreigners to operate in, that is what they want to change. Its happening in Botswana , South Africa and many other neighbouring countries. Why don’t you want it to be implemented in our country. That will help our people to erk a living rather than fight for the same clients with foreigners.

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    sancho 9 years ago

    South Africans are always looting foreign owned spaza shops. Ask yourself why. The have the heart to work. Same as Zimbabweans what were they up to when these foreigners we not there.

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    mhofu kulawez 9 years ago

    Some people want to classify themselves as foreigners by failing understand the difference between a foreigner and an indeginous. a white Zimbabwean is not a foreigner unless he chooses to be. the fact is a foreigner needs to bring ‘real’ investments not to come and run a ‘barbershop’. what investment is that? This policy is very good, however those who issued licences to te foreigners are the worst opponets of indeginisation, they must be prosecuted, they are the worst sellouts, they are in the same class with ‘NYATI’,they sold out our counrty to Nigerians, Chinese,Indians, Lebanese etc. we as zimbabwean must enjoy our resources. Every other country is doing it, so why not us. there is nothing wrong with this policy, there is nothing criminal and discriminatory about it.Some Nigerinas have married our sisters for convinience, they must be sent packing as well. VIVA this policy.i live in foreign land, i do not get such priviledge so why must others enjoy that .

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    maita 8 years ago

    ZanuPf blossoms in threats and threats. Kunge headmaster. Saka ku agriculture uku muchaita sei Nyanhongo akakweretesa farm repa Beatrice kumu China. Ko iye arikurima kupi manje, it means he is a multiple farm owner.