Zimbabwean authorities say they
have given foreign shop-owners,
mostly Chinese and Nigerian
nationals, an ultimatum to shut
down their businesses by 1 January
2014, hand them over to
Zimbabweans or face arrest.
A top official of the black
empowerment ministry said only
Zimbabweans had the right to run
shops that have sprung up across
the country and are termed foreign
businesses targeted under the
nation’s black empowerment laws,
the state-controlled Herald
newspaper reported Friday.
Permanent secretary for the
empowerment ministry, George
Magosvongwe, told a
Parliamentary committee that the
government would enforce
regulations which reserve certain
sectors of the economy to
Zimbabweans on January 1, 2014.
George Magosvongwo: said
government will
implement the law
George Magosvongwo: said
government will implement the
law
Under the country’s economic
empowerment legislation, areas
reserved for locals include retail
and wholesale businesses,
barbershops, hairdressings, beauty
salons, bakeries, employment
agencies and grain milling, among
others.
Said Magosvongwe: “I confirm that
some non-indigenous entities are
still operating in the reserved
sectors and there is a deadline for
January 1 for them to comply with
the requirement to relinguish their
holdings in that sector.
“You will realise Mr Chairman that 1
January is a month to come and we
are putting in place measures for
enforcement in the event that they
do not comply.”
He said the ministry was preparing
measures to ensure the exit of
foreigners from the retail sector
would not result in shortages.
“There is need to ensure that we
don’t create shortages in the
economy, but certainly the ministry
is going to enforce the reserved
sectors rule,” he said.
“And we will bring in the
enforcement agencies from right
across the Government
departments and the local
authorities to ensure that
enforcement happens.”
The January 1, 2014 ultimatum was
gazetted in May, making it
mandatory for all locally and
foreign-owned firms in reserved
sectors to apply for indigenisation
compliance certificates.
Only locals will be given those
certificates.
Those laws, passed in 2007,
demand foreign businesses to cede
51 percent control to local
blacks.The foreign shop owners
have been criticized for taking
retail trade opportunities from
Zimbabwean traders by selling
cheap imports.
Poor townships and city flea
markets have in recent years been
inundated by shops run by
foreigners.According to state
media, shop owners who fail to
comply will be arrested.