News / National
Zimbabwe reserves haulage and logistics industry for citizens
11 hrs ago | Views
Zimbabwe's Finance Act 2024, published under General Notice I 345A of 2024, has introduced an amendment to the Indigenization and Economic Empowerment Act [Chapter 14:33], designating the Haulage and Logistics Industry as a reserved sector exclusively for Zimbabwean citizens. This move marks a significant shift in the country's approach to empowering local businesses in the logistics sector, which plays a crucial role in the movement of goods, cargo, fuel, mineral ores, and other consumables within Zimbabwe's road networks.
The Haulage and Logistics Industry includes all services and operations related to the transportation of goods using various vehicles such as rigid trucks (up to 15 tonnes), horse-drawn trailers, tipper trucks, dump trucks, fuel tankers, and other road vehicles. With this new amendment, the sector will now be reserved for Zimbabwean nationals, with foreign investors required to apply for permission to operate within the industry.
Foreign investors wishing to continue their operations in the Haulage and Logistics sector must submit applications to the Ministry of Industry and Commerce. In their applications, they will need to demonstrate how their businesses meet or intend to meet the criteria set out in Section 3A of the 2021 updated Indigenization and Economic Empowerment Act [Chapter 14:33]. The prescribed criteria include significant and sustainable employment creation, transfer of skills and technology to benefit Zimbabweans, the creation of sustainable value chains, and the achievement of other socially and economically desirable objectives.
Additionally, foreign investors must comply with various regulatory requirements set by the Reserve Bank of Zimbabwe (RBZ), the Zimbabwe Revenue Authority (ZIMRA), the National Social Security Authority (NSSA), the Environmental Management Agency (EMA), the Zimbabwe Manpower Development Fund (ZIMDEF), the Zimbabwe Investment and Development Authority (ZIDA), and local authorities.
The amendment aims to foster local ownership and control in the Haulage and Logistics sector, ensuring that Zimbabweans benefit directly from the growth and development of this critical industry. It also emphasizes the government's commitment to enhancing the capacity of local businesses while promoting job creation, skills transfer, and the development of value chains that will contribute to the country's long-term economic growth.
Foreign investors in the sector are urged to align their operations with the government's indigenization and economic empowerment goals to continue contributing to Zimbabwe's economic transformation in a way that benefits the local population.
The Haulage and Logistics Industry includes all services and operations related to the transportation of goods using various vehicles such as rigid trucks (up to 15 tonnes), horse-drawn trailers, tipper trucks, dump trucks, fuel tankers, and other road vehicles. With this new amendment, the sector will now be reserved for Zimbabwean nationals, with foreign investors required to apply for permission to operate within the industry.
Foreign investors wishing to continue their operations in the Haulage and Logistics sector must submit applications to the Ministry of Industry and Commerce. In their applications, they will need to demonstrate how their businesses meet or intend to meet the criteria set out in Section 3A of the 2021 updated Indigenization and Economic Empowerment Act [Chapter 14:33]. The prescribed criteria include significant and sustainable employment creation, transfer of skills and technology to benefit Zimbabweans, the creation of sustainable value chains, and the achievement of other socially and economically desirable objectives.
Additionally, foreign investors must comply with various regulatory requirements set by the Reserve Bank of Zimbabwe (RBZ), the Zimbabwe Revenue Authority (ZIMRA), the National Social Security Authority (NSSA), the Environmental Management Agency (EMA), the Zimbabwe Manpower Development Fund (ZIMDEF), the Zimbabwe Investment and Development Authority (ZIDA), and local authorities.
The amendment aims to foster local ownership and control in the Haulage and Logistics sector, ensuring that Zimbabweans benefit directly from the growth and development of this critical industry. It also emphasizes the government's commitment to enhancing the capacity of local businesses while promoting job creation, skills transfer, and the development of value chains that will contribute to the country's long-term economic growth.
Foreign investors in the sector are urged to align their operations with the government's indigenization and economic empowerment goals to continue contributing to Zimbabwe's economic transformation in a way that benefits the local population.
Source - byo24news
