Govt: Investors bypass indigenisation law

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FINANCE minister Patrick Chinamasa says treasury will step up efforts to monitor foreign direct investment figures amid concerns that some potential investors are bypassing indigenization regulations barring them from investing in reserved sectors.
Chinamasa told Parliament on Monday that potential investors are misleading the Zimbabwe Investment Authority (ZIA) on sectors they intend to invest in yet they are targeting sectors with low capital outlay.
According to the Indigenisation Act, reserved sectors include agriculture, transport, retail, barbershops, hairdressing and beauty salons, employment and estate agencies, bakeries, tobacco processing, advertising agencies and even arts and crafts.
“No one monitors whether any of those investments have been established or not,” Chinamasa said.
“Sometimes those who register for the investments are doing something else different from what they told ZIA or they are even into retail business when they said they are coming for value addition.
“So these are things that we are looking at with a view to ensuring that there is sufficient monitoring mechanisms.”
Government has already approved applications from nearly 750 firms that applied for compliance licences for the reserved service sectors under the indigenisation regulations after they were given an ultimatum to comply by the beginning of the year.
Last month ZIA chairman Nigel Chanakira said the authority approved investment projects worth $400 million between January and May and are expected to reach $1 billion by year-end.Advertisement