According to the Indigenisation and Economic Empowerment Act, foreigners are no longer allowed to invest in reserved sectors such as grain milling, bakeries, local transportation and fast food outlets.
Last week officials from the National Indigenisation and Economic Empowerment Board (NIEEB) descended on various shops owned by nationals of other countries in Bulawayo, issuing them with final warnings to abandon their businesses and pave way for “black” business people.
NIEEB served final notices on popular food outlet, Golden Grill, a city bar, Cafe Baku, and numerous other businesses in the city.
“This hereby serves as the final notice and should you not comply with the recommendations given within seven days from this date, we will cause the cancellation of your operating licence and you will be required to close your shop without further notice,” reads part of the notice posted at the entrance of a shop at the corner of Herbert Chitepo Street and 9th Avenue.
The notice was dated May 12, 2014 and further stated that failure to comply was an offence attracting a fine not exceeding level four or imprisonment for a period not exceeding three months, or both.
One of the affected foreigners, Mohammad Musa, who operates a dry cleaning company, said he would be forced to close his business and retrench his workers.
“I was employing 15 people. It’s unfortunate that this development has come when I have invested more resources in the acquisition of modern equipment from Germany. I am expecting the consignment mid-July,” said Musa.
He described the indigenous laws as discriminatory, outdated and unfriendly to investors. “How can I be called a foreigner when I was born in this country? My grandfather came to Zimbabwe from India in 1929. He even participated in the liberation struggle by supplying freedom fighters with clothing,” he said.
A Zimbabwe Congress of Trade Unions (ZCTU) official, who declined to be named, said “The remaining few workers who were employed in these sectors will definitely lose their jobs. We view this indigenisation as a way of trying to take over flourishing businesses and give them to a clique of politically well-connected people, as happened with the land reform programme.”
NIEEB regional manager Linda Mpofu referred all questions to the board‘s Chief Executive Officer, Wilson Gwatiringa, who could not be reached for comment.
Post published in: Business