News / National
'No foreign firms seeking Zimbabwe indigenisation exemption'
13 Jan 2016 at 21:03hrs | Views
No foreign companies have approached the Government seeking exemptions to the 51percent /49 percent indigenisation requirement.
Zimbabwe's Indigenisation and Economic Empowerment Act of 2007 (Chapter 14:33) requires that at least 51 percent ownership of any foreign business must be in the hands of indigenous Zimbabweans with non-indigenous ownership limited to a maximum of 49 percent.
But in terms of new regulations that were gazetted recently, there is now an indigenisation levy that takes into account a rebate scoring system that encourages indigenisation in the form of economic empowerment credits.
What this basically means is that the new frameworks provide for two possible pathways for ensuring compliance, namely compliance through provision of a lesser share of indigenisation for the economic empowerment of indigenous Zimbabweans; or implementation of the Indigenisation Compliance and Empowerment Levy that takes account of the rebate scoring system.
In an interview this morning, Youth Development, Indigenisation and Empowerment Minister Patrick Zhuwao said he was not aware of any new requests by foreign firms for exemptions.
"I have not received any (requests of firms seeking exemptions), these are issues dealt by the various line ministries, but so far I have not heard of any companies that have requested exemptions," he said.
He however added that Government would only consider granting exemptions to firms that apply and have not already been caught offside of the indigenisation law.
"There is a provision for lesser shares in the Act, but these have to be submitted to the line ministries. But you can't say then that when you are breaking law then you want to ask for an exemption when you have already starting breaking the law. For you to at least show good faith abide by the law."
The Minister however said sectors "reserved for indigenous Zimbabweans", will remain exclusively reserved for local, while those foreign businesses currently operating in these areas would not have their licences renewed.
"We will not accept a position where the lesser share provisions are looked at within the reserve sectors. Conceptually within the reserve sectors we should get companies that are 100 percent indigenous," said Minister Zhuwao.
Zimbabwe's Indigenisation and Economic Empowerment Act of 2007 (Chapter 14:33) requires that at least 51 percent ownership of any foreign business must be in the hands of indigenous Zimbabweans with non-indigenous ownership limited to a maximum of 49 percent.
But in terms of new regulations that were gazetted recently, there is now an indigenisation levy that takes into account a rebate scoring system that encourages indigenisation in the form of economic empowerment credits.
What this basically means is that the new frameworks provide for two possible pathways for ensuring compliance, namely compliance through provision of a lesser share of indigenisation for the economic empowerment of indigenous Zimbabweans; or implementation of the Indigenisation Compliance and Empowerment Levy that takes account of the rebate scoring system.
In an interview this morning, Youth Development, Indigenisation and Empowerment Minister Patrick Zhuwao said he was not aware of any new requests by foreign firms for exemptions.
He however added that Government would only consider granting exemptions to firms that apply and have not already been caught offside of the indigenisation law.
"There is a provision for lesser shares in the Act, but these have to be submitted to the line ministries. But you can't say then that when you are breaking law then you want to ask for an exemption when you have already starting breaking the law. For you to at least show good faith abide by the law."
The Minister however said sectors "reserved for indigenous Zimbabweans", will remain exclusively reserved for local, while those foreign businesses currently operating in these areas would not have their licences renewed.
"We will not accept a position where the lesser share provisions are looked at within the reserve sectors. Conceptually within the reserve sectors we should get companies that are 100 percent indigenous," said Minister Zhuwao.
Source - BH24
