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Zimbabwe govt warns foreign-owned companies

by Moyo Roy
10 Aug 2011 at 18:32hrs | Views
Following complaints by local procurement firms that some foreign owned companies are allegedly flouting the requirements by not granting indigenous companies the stipulated percentage contract thresholds in the procurement of goods. Zimbabwe government has warned foreign-owned companies which are not complying with stipulated procurement regulations that require local firms to be granted at least 50% contracts on procurement deals.

The National Indigenisation and Economic Empowerment Board (NIEEB) Chairman, David Chapfika said the organisation is in discussions with relevant authorities regarding the need to ensure compliance by such companies in line with the Indigenisation and Economic Empowerment Act.

"We are not happy with such companies and such instances should indeed come to an end," Chapfika said.

Chapfika revealed that NIEEB will in the next few weeks finalise indigenisation modalities to reserved sectors of the economy such as hair salons, estate agencies, trade and retail sector, bakeries among others.

Government is forging ahead with the indigenisation policy to ensure that locals acquire controlling stakes in foreign owned companies operating within the country so as to unlock wealth, create jobs, and consolidate macro-economic gains.

Source - ZBC