Retailers welcome directive to stop issuing of licences to foreigners

Under the Indigenisation and Economic Empowerment Act, the retail industry is one of the sectors that Government said should be left for local entrepreneurs.
“On behalf of our members, we say thumbs up to Government for directing local authorities not to renew operating licences for foreigners who were running retail outlets in the country,” said the Retailers Association of Bulawayo (Rab) secretary-general Mr Simba Phiri in a telephone interview yesterday.
While it is noble that the Government has directed local authorities not to renew operating licences for foreigners in the retail sector, he said, it was critical to render the indigenous entrepreneurs with financial support to sustain their operations.
“At the moment, the local retailers do not have financial resources to import commodities. As a result, it is critical for Government to offer financial support to local retailers to boost their operations in the absence of foreign entrepreneurs.
“Because of working capital constraints, indigenous retailers have not been able to import and to pursue the objectives of the Indigenisation and Economic Empowerment programme. Funds should be availed to indigenous retailers who have been in existence before and have the expertise to run retail business,” said Mr Phiri.
He said Government could offer financial support to indigenous retailers through the National Indigenisation and Economic Empowerment Board (NIEEB) offices in order to alleviate the challenges borrowers face when applying for funding from financial institutions.
“There should be an ancillary office at grassroots level to ensure retailers get the support they need in pursuing the objectives of the indigenisation programme. We need a sub-office in high and low-density suburbs to assist the retailers on issues to do with indigenisation and economic empowerment,” he said.
In 2010, Government formed NIEEB to ensure that the indigenisation programme becomes broad-based.
Against this background the board is in the process of establishing regional offices at every province in the country.