Mnangagwa formalises amendments to the Indigenisation Act confirming Zimbabwe is open for business

Reserved sectors

Previously the reservation of certain sectors for “indigenous Zimbabweans” have been dealt with by regulation.  Now “reserved sectors” are reserved for “citizens of Zimbabwe” and the rules are laid down in the Act itself, in a new section 3A.  This section lays down the general rule that only a business owned by a citizen of Zimbabwe may operate in the twelve reserved sectors.  But non-citizens who commenced business before 1st January 2018 are allowed to continue in business subject to registering with both the Zimbabwe Revenue Authority and the new Indigenous and Economic Empowerment Unit, and, in addition, subject to opening and maintaining a bank account in accordance with the Bank Use Promotion Act.  Non-citizens wishing to open a business in a reserved sector after 1st January 2018 need the permission of the Minister, which will only be granted in certain circumstances stated in the new section 3A. 

The 12 reserved sectors are:

•             Transportation – passenger buses, taxis and car hire services;

•             Retail and wholesale trade;

•             Barber shops, hairdressing and beauty saloons;

•             Employment Agencies;

•             Estate Agencies;

•             Valet Services;

•             Grain milling;

•             Bakeries;

•             Tobacco grading and packaging;

•             Advertising Agencies;

•             Provision of local arts and crafts and their marketing and distribution;

•             Artisanal mining.

The Indigenisation and Economic Empowerment Unit and Fund

This will be a unit within the Ministry staffed entirely by members of the Civil Service and headed by a Director.  It will replace the former National Indigenisation and Economic Empowerment Board, which functioned as an autonomous body outside the Civil Service framework.

The amended Act gives the Unit and its members appropriate powers of inspection to carry out their functions under the Act.  

The Indigenous and Economic Empowerment Fund will now be administered by the Minister through the Director of the Unit, who must follow the Minister’s instructions.

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