Foreigners urged to tie up with locals in reserve sectors

FOREIGNERS operating in the reserve sector have to find local partners to comply with the indigenisation law, Youth, Indigenisation and Economic Empowerment minister Patrick Zhuwao has said.


The Indigenisation Act stipulates that at least 51% shareholding in foreign-owned companies operating in Zimbabwe should be in the hands of locals.

According to the frameworks, procedures and guidelines for implementing the Indigenisation and Economic Empowerment Act, no non-indigenous businesses will be allowed to invest in the reserve sector unless under special cases as determined by the line ministries or approved by Cabinet.

“Companies that are operating in the reserve sectors currently must comply with indigenisation. There are two things here.
There are companies in some instances that are 100% non-indigenous, they must comply with the minimum 51%.There are companies that are in the reserve sectors and are non-indigenous, they have to find a way of identifying with the indigenisation law either tying up with someone in the sector, that on a personal level,” Zhuwao said at a breakfast meeting in Harare yesterday.


The reserve sectors include agriculture, milk processing, bakeries, retail and wholesale, barbershops, hairdressing and salons, employment agencies, estate agencies, transport and grain milling, among others.

Zhuwao said companies had a first quarter deadline to submit their indigenisation plans, adding that there would be deeper conversations with the line ministries.

Zhuwao proposed a 10% empowerment levy which he said would have to be approved by Cabinet.

“I cannot say when the process will be complete.But I would have wanted by the end of the first quarter to be done with the process,” he said.

The levy will go to the National Indigenisation and Economic Empowerment Board to fund start-up, research and new proposals.
The Indigenisation Act came into being in 1998 and was revised in 2004.

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  1. Zimbabwe is doomed thats all I can say.

  2. This is the reason why investors are not coming to invest in Zimbabwe. The solution to this is to remove the ministry of empowerment and indigenization and Zhuwao,s uncle and restart everything.

  3. Minister Zhuwawo’s overzealous rules and regulations would make sense if we had a bristling and vibrant economy to talk of. The reality on the ground is that the economy is at worst, comatose and we do not seem to have any takers serve for those like the Chinese, who even think they are even doing us a favor- on their own terms of course!These so called “patriotic policies” are only taking us as far as a pointless wild goose chase!

  4. Mozambique had $8 Billion FDI last year. Zim had $300 Million. Go figure

  5. I e­­­arn 2­­­5 do­­­llars e­­­very 3­­­0 mi­­­nut­­­es. Wo­­­rk f­­­or fe­­­w ho­­­urs a­­­nd ha­­­ve l­­­ong­­­er ti­­­me wi­­­th fr­­­iend­­­s an­­­d f­­­ami­­­ly. ­­­ch­­­eck it o­­­ut th­­­is li­­­nk fo­­­r de­­­tails.­­­


    1. what Randall replied I am amazed that some people can get paid $6308 in a few weeks on the internet

  6. The law is draconian and is aimed at giving ZANU PF politicians an opportunity to grab companies that are not theirs just like what they did with farms were some of them ended up with more than 5 farms like Obert Mpofu. How did they arrive at this 51% in the first place? At this stage government should be introducing investor friendly laws. For example gvt may say no tax for say 5 years for new manufacturing companies whether will they be from abroad or not. Gvt will then benefit from high employment rate, high income base in the form of PAYE & VAT or Sales tax. This Ministry should be removed completely

  7. What does the local person bring in, pointing to a pit and say that is my equity, something precious is in that pit but I cannot take it out. We will find them after a 1000 years.

  8. can you explain to us mr minister the law that states that all RETAILING activities here should be done by locals, yet we see many foreigners in particular the Nigerians, Congolese, Indians among others occupying tumatuckshops twese and most retail shops. We are good orators asi paground pasina chiripo taneta nemi isu.

  9. unbelievable!

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