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In a statement on Friday, Mr Chapfika said NIEEB, through the Ministry of Youth Development, Indigenisation and Empowerment, now required companies who received approvals for their indigenisation plans to immediately apply for certificates of compliance.
“The certificate of compliance is proof that a company has fully complied with Section 3 of the Indigenisation and Economic Empowerment Act (Chapter 14:33) as read with the General Indigenisation and Empowerment Regulations, 2010,” said Mr Chapfika.
“Any company whose indigenisation plans have been approved, but has not applied for and obtained the compliance certificate, will be deemed non-compliant for all intents and purposes.”
Mr Chapfika said indigenous companies were also required to apply for indigenous status compliance certificates.
“One hundred percent indigenous companies are also required to apply for indigenous status compliance certification as defined in Section 2 of the Indigenisation and Economic Empowerment Act (Chapter 14:33).
“It would be a prerequisite of every company to participate in any indigenisation transaction. Every company acquiring shareholding by virtue of being indigenous will be required to produce this certificate and no indigenisation transaction shall be approved without the certificate,” said Mr Chapfika.
He said the production of a compliance certificate would also be mandatory for all indigenous institutions to benefit from the 50 percent procurement quota.
“It would be a requirement for this certificate to be produced so that the applicant benefits from the 50 percent procurement quota. We have three types of certificates which include the full compliance certificate which attracts $5 000, the provisional compliance certificate which is going for $10 000 and the one hundred percent indigenisation compliance which is $2 000.
“The full compliance and the 100 percent indeginisation compliance certificates are valid for two years only,” he said.
Mr Chapfika advised the companies concerned to immediately submit their applications to NIEEB to avoid complications when conducting their business transactions.
The Indigenisation and Economic Empowerment Act requires that at least 51 percent ownership in any business must be in the hands of indigenous Zimbabweans, while foreign or non-indigenous ownership must be limited to a maximum of 49 percent.
Online Reporter