Foreigners banned from owning businesses

HARARE - Zimbabwe has from New Year’s Day banned foreigners from owning a majority stake in a host of businesses from bakeries to beauty salons, a cabinet minister said on Tuesday.

Foreigners will only be allowed to own minority stakes in the affected businesses if they have local partners, and will be given between four and five years to comply with the new law.

“We are saying from January 1, 2014, we will not be issuing foreigners licences in areas reserved for locals,” indigenisation minister Francis Nhema, told AFP.

“Foreigners who are already operating in those areas reserved for locals should seek indigenous partners to buy shares,” said Nhema.

“Likewise locals are free to seek foreign partners as long as the local retains their majority shareholding.”

“The ban will also include estate agencies, grain mills, retail outlets, milk processing plants, transport and valet services. Nhema said foreign-owned businesses should hand in plans on how they intend to comply.

“In some areas, they will be given four years in some areas, five. It all depends on the area and individual circumstances,” he said.

“Wherever there are problems we can always discuss and see how we can help each other.

“It’s all about creating employment and empowering indigenous Zimbabweans.

“There is no victimisation,” said Nhema.

Zimbabwe brought in indigenisation legislation in 2010 that compelled foreign firms including mine owners to cede majority shareholding to local investors.

A number of foreign mines have complied with the law, which the government says seeks to empower local blacks who suffered exclusion under British colonial rule.

Opposition leader Morgan Tsvangirai says the law will benefit businesspeople aligned to veteran President Robert Mugabe and scare potential investors.

 

Comments (4)

Ndashamisika vanhu hamuna kunyora comment panyaya iyi .Ini pfungwa yangu inoti nyaya yeideginisation yakanakisisa zvikuru asi kwete zvekuda kutora mashares mumakambani makuru musina kutenga mashares companys Act inoti all shares should be purchased some how some how and every share in a company has a value.Imi mamwe madofo eZanu pf seek advice do not get fooled nothing for mahala muchinyeperwa I reapit nothing for free.Nyaya chaiyo ndei iyi for the reserved SECTORS. Reseved sectors for local people ndiyo nyaya yatinofanirwa senyika kunge tichitaura nezvayo kuti ipfungwa yakanaka vanhu vese motenderana ukaenda kupi kanakupi nyikadzose mutemo iwowo uriko'' kana ndiri ndinoti all foreigners dziri muretail sector nemwe masectors akatemwa ngavakurumidze kuregera the must move out fast they must go into manufacturing and other sectors designed for them wether chinese,nigerian, or somalian or what. we are not in a united states of africa.Ndakazwa minister Mzembi achishora directive iyi.Iwe mzembi uribenzi ndiudze kuti ngeipi nyika yaunoenda pasirino ukakasvika ukatsvaga basa raunoda ukariona mamwe masectors haatenderwi wazwa yetourism ngeyako haina basa.All forigners doing busineses in these reserved sectors must go or go into manufacturing or face arrest and get improsined. mira ndikuudze uya muIndia wemuna mbuya nehanda street(people college) waiti ukasvika kuti unoda shop yekurenta vaiti hapana achipa maNigerians onyepera kutaura history dzekuti aichengeta macomrade munguva yehondo iye achiita uworo.

dofo - 2 January 2014

lets see if this law will also apply to their dear chinese friends

allen - 2 January 2014

The Minister should address the issue of company closures before he can talk of indeginisation. We need foreign direct investment and his directive will worsen our situation because no sane investor will through his moneys into the deep end. Remember Zimbabwe is not owed anything by the investment community-instead it should compete and attract investors through the enactment of investor-friendly policies. In Gweru most companies have closed shop, the likes of Zimglas, ZimAlloys, Zimcast, Radar Castings, Powercell/Kariba Batteries yet we have someone propagating archaic policies which do not bring food on the table for the country's toiling masses.

Chief Charumbira - 2 January 2014

why 5 years? is it so that they can say this is what we have been doing for the past five years when elections come? is that all there is to be done in the next five years?

munyaradzi - 3 January 2014

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