Indigenisation & Economic Empowerment Act
Government is, through the Finance Bill being submitted to this August House for the 2018 financial year, amending the Indigenisation and Empowerment Act, to bring the following into effect from April 2018:
Diamonds and platinum are the only sub-sectors designated as ‘extractive.’
Accordingly, the proposed Amendments will confine the 51/49 Indigenisation threshold to only the two minerals, namely diamonds and platinum, in the extractive sector.
The 51/49 threshold will not apply to the rest of the extractive sector, nor will it apply to the other sectors of the economy, which will be open to any investor regardless of nationality.
The Reserved sector is only for Zimbabwean citizens, and for non-Zimbabweans, entry into the Reserved sector will only be by special dispensation granted by Government, if the proposed business:
- Creates employment;
- Affords the opportunity for the transfers of skills and technology for the benefit of the people of Zimbabwe;
- promotes the creation of sustainable value chains; and
- Meets the prescribed socially and economically desirable objectives.
As we seek to attract both local and foreign investments, existing and potential investors become fully guided by the Amendments we seek to effect through the Finance Bill that is being brought to this August House.
Those already in the Reserved sector, except gold panning, will be required to register and comply with our laws.
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