HomeNewsGovt gives local firms ultimatum

Govt gives local firms ultimatum


THE National Indigenisation and Economic Empowerment Board (NIEEB) has set its sight on locally owned entities demanding they should attain indigenisation certification as proof of compliance, amid concerns local businesspeople are fronting foreign investors.

Report by Tarisai Mandizha

Under the country’s indigenisation and economic programme, foreign-owned companies are required to sell 51% shareholding to locals.

In a notice on Friday, NIEEB gave local entities a 14-day grace period to apply for compliance certificates, failure which the companies, despite being locally- owned, would be deemed non-compliant.

NIEEB chief executive officer Wilson Gwatiringa could not be reached for comment yesterday as his mobile phone went unanswered.

Indigenisation and empowerment minister Saviour Kasukuwere could also not be reached for comment.

“NIEEB would like to advise all companies with approved indigenisation implementation plans and shareholding structures to immediately apply for indigenisation certification.

“The certification will be primary proof that a company has successfully complied with the indigenisation and economic empowerment Act,” said NIEEB in a statement.

A total of 226 companies had been short listed to comply within 14 days. “The following companies are therefore urged to apply for certification within 14 days from the date of this publication, failure of which, these companies may be deemed non-compliant with the indigenisation law,” said NIEEB in a statement.

The indigenous companies include prominent ones such as Kuchi construction, Rainbow Tourism Group, Harambe Holdings, Anchor Yeast, Costain Zimbabwe, Econet Wireless, Modzone Enterprises, Pelhams, Tigers Bricks, Zimphos and Wedzera Petroleum, among many others.

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