adminSection 3 (1) of the Indigenisation and Economic Empowerment Act requires the entities including local authorities to secure at least 50 percent of their goods and services locally.
In an interview, NIEEB board chairperson Mr David Chapfika said most of the entities were aware of the law that promotes local procurement of goods and services to promote the indigenisation and economic empowerment programme.
“It (Procurement Statutory Instrument) has been there for over a year now. Most companies are aware of Statutory Instrument and it has been implemented,” he said.
Last year, the board expressed concern that the law was not being followed.
“However, in the case where goods or the services are not available locally, they will have to be 100 percent imported,” said Mr Chapfika.
Mr Chapfika said in cases where non-indigenous companies were awarded exceptional contracts, the entities were required to subcontract indigenous firms.
He said companies that would flout the regulations would be prosecuted if evidence was brought to NIEEB.
The board is also involved in issuing out Indigenisation compliance certificates to companies in order to promote economic empowerment.
The certificates are also used when the entities intend to participate in any tender.
A few weeks ago, NIEEB said plans were afoot to spearhead the formation of companies wholly owned by locals before the end of the year.
This will be done by engaging people in the Diaspora and local professionals to start businesses in different sectors of the economy.
The Indigenisation Act was promulgated in 2007 and stipulates that foreigners should not hold more than 49 percent shares in a company with a minimum asset value of $500 000.
Online Reporter