800 companies comply with Indigenisation

nhema francisHarare Bureau
AT least 800 companies in sectors reserved for indigenous Zimbabweans under the Indigenisation and Economic Empowerment Act have applied for indigenisation compliance certificates. Both locals and foreigners applied. The applications are in compliance with a May 17 Government Gazette regulations that made it mandatory for all locally and foreign-owned firms in reserved sectors to apply for indigenisation compliance certificates by tomorrow.

There were indications that no foreigners’ applications would be accepted according to the regulations.
However, Youth, Indigenisation and Economic Empowerment Minister Francis Nhema, has declared that no foreigner operating in those sectors would be pushed out of those sectors.

National Indigenisation and Economic Empowerment Board (NIEEB) chief executive officer, Mr Wilson Gwatiringa, yesterday said there was an overwhelming response from businesses run by foreigners and locals who were applying for compliance certificates.

“This month we have been very busy with many companies coming to us for registration or compliance application,” said Mr Gwatiringa.
“In the past weeks, we were recording about 100 companies per day but today only, we have recorded over 200 companies,” he said.
“The business community has heard the call and is making frantic efforts to comply with the indigenisation policy. We want to ensure that there is order particularly within the retail sector so that our economy can benefit from their operations.”

The Indigenisation regulations had stated that any person including locals who operated a business in the reserved sectors without an indigenisation compliance certificate with effect from tomorrow would 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.

According to the regulations, sectors reserved for Zimbabweans included 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.

Some locals including lobby groups said there was a need for Government to spell out the binding position.
They said recent assurance by Finance Minister Patrick Chinamasa that there was no going back on indigenisation and Minister Nhema’s recent position were contradictory. “On the very face of it, it would seem that the very laws we are creating to safeguard our indigenous people’s working space can easily be rendered useless and of no consequence overnight, a position, I believe is not the case,” said Affirmative Action Group president Mr Keith Guzah.

“We are waiting for a meeting with the minister to get proper guidelines and if we are not happy with his position, we will register our concerns with him.”

Upfumi Kuvadiki president, Mr Scott Sakupwanya, said there was a need for the Government to facilitate a win-win situation between the locals and foreigners in those sectors.

“We are not lobbying for take-over of shops owned by foreigners but we are saying they must negotiate with locals so that they can come up with mechanisms that will see indigenous Zimbabweans having majority shareholding in those sectors.

“We cannot throw away our election theme of ‘bhora mugedhe’ by changing our policies overnight. The indigenisation drive seeks to empower Zimbabweans whom President Mugabe is passionate about. Minister Chinamasa also indicated that there was no going back on indigenisation when he presented the (proposed national) budget making the statements by Minister Nhema even more confusing,” he said.

But foreigners operating in those sectors hailed Government for the reprieve.
Some local retailers said the move was necessary as there was no need to chase fellow Africans but uphold the African spirit of unity.

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