Zimbabwean authorities inform 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.
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.
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.
“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 relinquish their holdings in that sector.He said the ministry was preparing measures to ensure the exit of foreigners from the retail sector would not result in shortages.
“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,” Mr. Magosvongwe said.
“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.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.
“And we will bring in the enforcement agencies from right across the Government departments and the local authorities to ensure that enforcement happens,” the secretary added.
A number of 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.