Wednesday, July 4, 2012

Indigenisation and Economic Empowerment Sector Specific Frameworks: G.N. 280 of 2012 Gazette

Comments
Having gazetted the first 2 Sector frameworks for compliance with Indigenisation and Empowerment in 2011 on Mining and Manufacturing, the Government of Zimbabwe has gone a step further to gazette for the remaining sectors which are Finance, Tourism, Education and Sport, Arts, Entertainment and Culture, Engineering and Construction, Energy, Services, Telecommunications, Transport and Motor Industry Sectors. Below are the set thresholds for compliance in the aforementioned Sectors.

General Notice 280 of 2012.

INDIGENISATION AND ECONOMIC EMPOWERMENT ACT [Chapter 14:33]
_____________________

Net Asset Value, Lesser Share and Maximum Period for Businesses to Indigenise in the Finance, Tourism, Education and Sport, Arts, Entertainment and Culture, Engineering and Construction, Energy, Services, Telecommunications, Transport and Motor Industry
Sectors.
___________________

IT is hereby notified that the Minister of Youth Development, Indigenisation and Empowerment has, in terms of section 5(4) as read with section 5A(4) of the Indigenisation and Economic Empowerment (General) Regulations, 2010 (“the principal regulations”), prescribed with respect to theFinance, Tourism, Education and Sport, Arts, Entertainment and Culture, Engineering and Construction, Energy, Services, Telecommunications, Transport and Motor Industry Sectors the—
(a)    appropriate minimum net asset value above which a business is required to comply with the principal regulations;  and
(b)   lesser share than the minimum indigenisation and empowerment quota that indigenous Zimbabweans may hold;  and
(c)    maximum period a business may continue to operate before it attains the minimum indigenisation and empowerment quota;
as indicated in the Schedule.
G. MAGOSVONGWE
Acting Secretary for Youth Development, Indigenisation and Empowerment

SCHEDULE
PART I
FINANCESECTOR

Sub-sector
Minimum net asset value
US$
Lesser share for non-indigenous businesses
Years to comply
All financial institutions
As per minimum capital prescribed by the Reserve Bank of Zimbabwe
51%
1st year=51%


PART II
TOURISM

Sub-sector
Minimum net asset value
US$
Lesser share for non-indigenous businesses
Years to comply
Accommodation (Hotels according to stars and value)—
1 star
2 500 000,00
51%
1st year=51%
2 star
5 000 000,00
51%
1st year=51%
3 star
7 500 000,00
51%
1styear=51%
4 star
7 500 000,00
51%
1styear=51%
5star
10 000 000,00
51%
1styear=51%
Boats/Cruisers/Yachts
500 000,00
51%
1st year=51%
Motor Coaches (MC0)
500 000,00
51%
1st year=51%
Tourist Activities—
Hunting safari’s or operators
1,00
51%
1st year=51%
Tour Operators(Reserved for indigenous Zimbabweans)—
Photographic and other non-consumptive safari operators
100 000,00
51%
1styear=51%
Fishing safaris
100 000,00
51%
1styear=51%
Visitors activities (including canoeing, rafting, cruising, bungee jumping, horse riding and golf IVAC)
100 000,00
51%
1styear=51%
Visitors attractions including game parks, farms, sanctuaries, at galleries and cultural villages (VAT)
100,00
51%
1st year=51%
External Tours
500 000,00
51%
1styear=51%


PART III
EDUCATION AND SPORT

Sub-sector
Minimum net asset value
US$
Lesser share for non-indigenous businesses
Years to comply
Pre-schools
1,00
51%
1st year=51%
Primary Schools
1,00
51%
1styear=51%
Secondary Schools
1,00
51%
1styear=51%
Private Colleges
1,00
51%
1styear=51%
Universities
1,00
51%
1styear=51%
Sport entities, social clubs and sport associations
1,00
51%
1styear=51%


PART IV
ARTS, ENTERTAINMENT AND CULTURE

Sub-sector
Minimum net asset value
US$
Lesser share for non-indigenous businesses
Years to comply
Performing Arts, Theatre, Music and Dance
1 000 000,00
51%
1st year=51%
Entertainment Film
10 000,00
51%
1styear=51%
Entertainment Television
1,00
51%
1styear=51%
Entertainment Radio
1,00
51%
1styear=51%
Visual arts and craft
1,00
51%
1styear=51%


PART V
ENGINEERING AND CONSTRUCTION

Sub-sector
Minimum net asset value
US$
Lesser share for non-indigenous businesses
Years to comply
Consulting Engineers
1,00
51%
1st year=51%
Building Contractors
1,00
51%
1st year=51%
Civil Engineering
1,00
51%
1st year=51%
Electrical and Mechanical Engineering
1,00
51%
1st year=51%
Material, Plant Hire and Equipment Supplies
1,00
51%
1styear=51%
Joinery and shop fitting
1,00
51%
1styear=51%
Plumbing
1,00
51%
1styear=51%




PART VI
ENERGY

Sub-sector
Minimum net asset value
US$
Lesser share for non-indigenous businesses
Years to comply
Electricity —
Transportation
1,00
51%
1st year= 51%
Storage/Handling
1,00
51%
1st year= 51%
Retail
1,00
51%
1st year= 51%
Renewable energy—
Retail (Existing)
100 000,00
51%
1st year= 51%
Distribution
100 000,00
51%
1st  year= 51%
System integration
500 000,00
51%
1styear= 51%


PART VII
SERVICES

Sub-sector
Minimum net asset value
US$

Lesser share for non-indigenous businesses
Years to comply
Maintenance services
100 000,00
51%
1styear=51%
Healthcare
500 000,00
51%
1styear=51%
Security services
50 000,00
51%
1styear=51%
Catering services
50 000,00
51%
1styear=51%
Freight and logistics
149 000,00
51%
1styear=51%
Construction and engineering
49 000,00
51%
1styear=51%
Franchising
30 000,00
51%
1styear=51%


PART VIII
TELECOMMUNICATIONS

Sub-sector
Minimum net asset value
US$
Lesser share for non-indigenous businesses
Years to comply
Advertising
1,00
51%
1st year=51%
Broadcasting
1,00
51%
1st year=51%
Communication and networking
1,00
51%
1st year=51%
Courier services
1,00
51%
1st year=51%
Equipment agents for supply and maintenance
1,00
51%
1st year=51%
Equipment assembly and/or manufacturing
1,00
30%
1styear=51%
Film making
1,00
40%
1st year=51%
Fixed telephone
1,00
30%
1st year=51%
Internet access provision
1,00
40%
1st year=51%
Mobile cellular
1,00
51%
1st year=51%
Postal general
1,00
40%
1st year=51%
Public data
1,00
40%
1styear=51%
Publications
1,00
40%
1styear=51%


PARTIX
TRANSPORT AND MOTOR INDUSTRY

Sub-sector
Minimum net asset value
US$
Lesser share for non-indigenous businesses
Years to comply
Haulage industry
500 000,00
51%
1st year =51%
Inland water bodies
20 000,00
51%
1st year =51%
Harbours
1,00
51%
1st year=51%
Motor trade
1,00
51%
1st year =51%
Part manufacturing
1,00
51%
1st year=51%
Assembling factories
1,00
51%
1st year=51%
Wholesale distributors
1,00
51%
1st year=51%
Agent or sub-dealers
1,00
51%
1st year=51%
Parts distributors retailers
1,00
51%
1st year=51%
Panel beaters
1,00
51%
1st year=51%
Workshops
1,00
51%
1st year=51%
Public and commercial airlines
1 000 000,00
51%
1st year =51%