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
|
51%
|
1st year =51%
|