THE National Indigenisation and Economic Empowerment Board (NIEEB) has instructed the Bulawayo City Council not to issue or renew operating licences for businesses in the reserved sectors of the economy which do not have valid indigenisation compliance certificates.
In a letter to the local authority, NIEEB said the local authority had been identified as one of the major licensing authorities in Zimbabwe.
“Statutory Instrument (SI) 66 of 2013 provides that every business operating in the reserved sectors of the economy shall apply for an indigenisation compliance certificate and that, with effect from January 1 2014 no business shall, in terms of the law, be allowed to operate without the said certificate,” reads the letter.
“The statutory instrument in Section 9a (4) further empowers the minister responsible for indigenisation and economic empowerment to direct any licensing authority to revoke, suspend or cancel the operating licence of a business operating in the reserved sectors of the economy without complying with these regulations.
“Your organisation has been identified as one of the major licensing authorities in Zimbabwe and as such, in line with the above cited regulations, you are advised not to issue out or renew operating licences for businesses in the reserved sectors of the economy which do not have valid indigenisation compliance certificates.”
Some of the reserved sectors include agriculture, bakeries, retail and wholesale trade, transport and barber shop, hairdressing and beauty salons, among others. NIEEB said “maximum co-operation is anticipated”.
Council has since resolved to engage the board for clarity on grey areas and then proceed to inform the public through a newspaper advert in the near future.
Early this year NIEEB launched a massive crackdown on business entities in Bulawayo operating under the reserved sectors, resulting in some of them closing shop.
During its congress, Zanu PF resolved to “direct the party and the government to immediately reinvigorate the implementation of the Indigenisation and Economic Employment Act by enforcing compliance of its provisions”.