Tuesday, March 29, 2016

35 Foreign Firms Submit Indigenization Plans to Zimbabwe Government
March 29, 2016
Business Reporter
Zimbabwe Herald

At least 35 foreign-owned companies have submitted plans on how they intend to localise their shareholding in terms of the indigenisation law, the Zimbabwe Investment Authority has said. Under the new indigenisation framework, which came into effect in January this year, foreign-owned companies are required to submit their proposals through ZIA. ZIA chief executive Mr Richard Mbaiwa said last week the authority has handled only 35 applications.

“Since we were given the mandate to handle the applications, we received 35 proposals,” said Mr Mbaiwa. Government set March 31 as the deadline for submitting proposals on indigenisation compliance. All companies that fail to comply by March 31 will have their operational licenses cancelled following a directive issued by the Cabinet last week to line ministers to start enforcing the law.

Last week, Youth, Indigenisation and Economic Empowerment Minister Patrick Zhuwao said Cabinet unanimously passed a resolution directing that from April 1 2016 all line ministries should proceed to issue orders to licensing authorities to cancel licenses of non-compliant business within their respective sectors of the economy.

“Cabinet has directed that on April 1, 2016, all line ministers invoke Section 5 of the Indigenisation and Economic Empowerment Act (Chapter 14:33) Act against all non-compliant businesses in their sectors Invoking of Section 5 of the Act is purely a technical process which shall come into effect by pure operation of the law,” said Minister Zhuwao.

Under the process, line ministers shall issue orders to licensing authorities to cancel licences of non-compliant businesses.

Minister Zhuwao said Cabinet had also directed that all line ministries must make available to the National Indigenisation and Economic Empowerment Board (NIEEB) a full and comprehensive list of all companies that are licensed to operate within their sectors within a week from March 22, 2016 for the purposes of verifying their indigenous status.

‘Zim has enough maize seed for 2016-17 season’

March 29, 2016
Elita Chikwati
Agriculture Reporter
Zimbabwe Herald

ZIMBABWE will have enough maize seed for the 2016/ 17 farming season despite the drought that affected the bulk of the crop planted this season, a senior Government official has said. Agriculture, Mechanisation and Irrigation Development Permanent Secretary Mr Ringson Chitsiko said this at a recent multi-sector consultative meeting. He said the country was expecting 42 000 tonnes of maize seed, which is enough for the next farming season.

“A projected 42 000 tonnes of maize seed is expected this season, which is in line with the national requirement despite the prevailing drought. “There are huge stocks of fertilisers held by the local fertiliser industry,” he said.

Mr Chitsiko said there was need to mobilise resources to support farmers during the 2016-17 cropping season following two consecutive poor seasons. He said there was also need to enhance irrigation development in view of limitations highlighted by the past two farming seasons.

Mr Chitsiko said Government is working on the Zimbabwe-Brazil irrigation programmes where 67 projects are expected to be completed within four months and the installation expected to cost $2 million.

“With regards to the ongoing Public Sector Investment Programme (PSIP) projects, a total of 12 projects with a total of 10 000 hectares can be completed within a period of six months at a total cost of $4,4 million.

“Under the PSIP Drought Emergency Projects, a total of 15 projects with total of 500 hectares can be completed within a period of six months at a total of $1 100 000 to finance the rehabilitation. “The smallholder irrigation programme is being implemented in collaboration with FAO (Food and Agriculture Organisation).

“The target is to commission 550 ha by June and 1 200 hectares by December 2016,” he said. Mr Chitsiko raised concern over the limited resources to kick-start and expand the current emergency response efforts.

The 2015-16 summer cropping season was affected by drought and a decline of 49 percent was recorded in maize production while tobacco production also fell by 20 per- cent. Agriculture experts have called for a shift from relying on rain-fed agriculture to irrigation.

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