Sunday Mail Reporter
Cabinet has approved a plan to shut down all foreign companies operating in Zimbabwe that do not comply with the indigenisation programme, Youth, Indigenisation and Economic Empowerment Minister Patrick Zhuwao said on Wednesday.
Briefing the Press in Harare, Minister Zhuwao said the indigenisation deadline is March 31, 2016; and no grace period will be given before companies are closed.
He said: “On Tuesday 22 March 2016, Cabinet unanimously passed a resolution, directing that from 1 April 2016, all line ministries proceed to issue orders to licencing authorities to cancel licences of non-compliant businesses within their respective sectors of the economy.
“Cabinet also directed line ministries to make available to the National Indigenisation and Economic Empowerment Board a full and comprehensive list of all companies that are licenced to operate within their sectors within a week from 22 March 2016 for the purposes of verifying their indigenisation status.”
Zimbabwe’s Indigenisation and Economic Empowerment Act requires shareholding of 51/49 percent weighted in favour of locals in all companies with a minimum value of US$500 000.
The law provides support measures for indigenising the economy and empowering indigenes historically disadvantaged by colonialism.
42,348 total views, 11 views today