Share

Zim gives 30 day ultimatum to foreign shops

Harare - Zimbabwe has given all foreign companies and foreigners operating retail and wholesale businesses, including bakeries and grain milling companies, a deadline of January 1 2014 for to stop their operations.

The directive is in line with the country’s indigenisation laws that prohibit non-indigenous Zimbabweans from operating in sectors that are reserved for local indigenous Zimbabweans.

Secretary for Youth, Indigenisation and Economic Empowerment George Magosvongwe told legislators that non-indigenous entities still operating in the reserved sectors have a deadline of January 1 to comply with the requirement to relinquish their holdings in that sector.

According to The Herald, Magosvongwe said his ministry was putting enforcement measures in place in the event that those affected do not comply.

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

Zimbabwe’s Indigenisation and Economic Empowerment Act reserves certain sectors of the economy for indigenous Zimbabweans.

Some of these sectors, especially the retail sector, are dominated by Nigerian, Chinese and Indian individuals and firms.

- Fin24

*Malcom Sharara is Fin24’s correspondent in Zimbabwe. Views expressed are his own.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
19.09
-1.0%
Rand - Pound
24.06
-0.7%
Rand - Euro
20.58
-0.5%
Rand - Aus dollar
12.39
-0.3%
Rand - Yen
0.13
-0.9%
Platinum
894.64
-0.3%
Palladium
992.99
-0.9%
Gold
2,196.85
+0.1%
Silver
24.44
-0.8%
Brent Crude
86.09
-0.2%
Top 40
67,964
+0.4%
All Share
74,173
+0.4%
Resource 10
56,465
+1.4%
Industrial 25
103,617
+0.3%
Financial 15
16,480
-0.3%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders