News / National
Zimbabwe to shut down all foreign companies resisting indigenisation - Zhuwao
20 Mar 2016 at 06:25hrs | Views
Youth, Indigenisation and Economic Empowerment Minister Patrick Zhuwao has vowed to shut down all foreign companies resisting Zimbabwe's indigenisation programme on April 1.
Only 50 established firms have submitted their indigenisation plans to the Zimbabwe Investment Authority, with the remainder maintaining indifference.
Zhuwao said many companies had demonstrated "total disregard for the law" by failing to submit indigenisation plans.
"We will now, instead, put in place appropriate measures to invoke Section 5 of the Act which calls for cancellation of licences of non-compliant companies. In attempting to make the companies comply, we had initially come up with the idea of a levy that could be moderated by the extent of compliance.
"However, on further reflection and consultation, we realised that such a levy would be payment for companies to continue disregarding the law. I, as minister, would have been complicit in committing an illegal act, and enabling companies to break the law is contrary to the spirit and intent of a constitutional democracy like Zimbabwe."
"The message we should send investors is that Zimbabwe believes in the rule of law. Companies that operate illegally must stop operating. This is not policy inconsistency; I have always said that I am proposing the levy to ensure compliance. The levy was never imposed. It was a proposal, and a proposal - by its very nature - is open to discussion".
Only 50 established firms have submitted their indigenisation plans to the Zimbabwe Investment Authority, with the remainder maintaining indifference.
Zhuwao said many companies had demonstrated "total disregard for the law" by failing to submit indigenisation plans.
"We will now, instead, put in place appropriate measures to invoke Section 5 of the Act which calls for cancellation of licences of non-compliant companies. In attempting to make the companies comply, we had initially come up with the idea of a levy that could be moderated by the extent of compliance.
"However, on further reflection and consultation, we realised that such a levy would be payment for companies to continue disregarding the law. I, as minister, would have been complicit in committing an illegal act, and enabling companies to break the law is contrary to the spirit and intent of a constitutional democracy like Zimbabwe."
"The message we should send investors is that Zimbabwe believes in the rule of law. Companies that operate illegally must stop operating. This is not policy inconsistency; I have always said that I am proposing the levy to ensure compliance. The levy was never imposed. It was a proposal, and a proposal - by its very nature - is open to discussion".
Source - Sunday Mail
