Indigenization Minister Patrick Zhuwao has vowed that there is no going back on plans by government to cancel licenses of foreign firms that fail to comply with the Cabinet’s April 1st deadline to submit their black empowerment compliance plans.
The country’s empowerment law states that at least 51 percent of the shares of every company and any other business should be owned by indigenous Zimbabweans. Government is also bitter that foreign companies have spurned Zhuwao’s directive to contribute 10 percent of their annual earnings to the proposed empowerment levy.
But criticism of the government’s plan is increasing. War Veterans leader Chris Mutsvangwa, who was recently booted out of cabinet, is quoted in the Newsday newspaper as saying his organization will resist plans to nationalize companies and loot the country’s resources.
The Zimbabwe Congress of Trade Unions has also written a letter to Zhuwao protesting the threat to close companies saying he is leading the nation towards a slippery slope. The International Monetary Fund has also called on the government to clarify the opaque law that many say is driving away foreign investors.
In an exclusive interview with Studio 7, Zhuwao said government will continue with its plans and said he has personally organized an indigenization clinic for those who have queries.
