The government is working on measures that will restrict the foreign procurement of raw materials and equipment by companies to only 50 percent of their needs.
Psychology Maziwisa, political and legal advisor to Indigenisation and Economic Empowerment Minister Saviour Kasukuwere, told VOA Studio 7 these measures are part of the government’s efforts to enforce a statutory instrument encouraging the procurement of local raw materials.
Maziwisa said such moves are also part of the government and Zanu-PF’s indigenisation and empowerment policy, adding the law will be enforced to make sure all companies comply.
But Employers’ Confederation of Zimbabwe director John Mufukare said forcing companies to buy some expensive local raw materials will hurt firms that are already struggling under harsh economic conditions.
According to the state-controlled Herald newspaper, in 2012 alone, Zimbabwe is said to have imported goods worth $8.2 billion compared to exports amounting to $5 billion.
Under the empowerment law, foreign companies operating in the country are expected to transfer equity stakes of up to 51% to indigenous people.
Psychology Maziwisa, political and legal advisor to Indigenisation and Economic Empowerment Minister Saviour Kasukuwere, told VOA Studio 7 these measures are part of the government’s efforts to enforce a statutory instrument encouraging the procurement of local raw materials.
Maziwisa said such moves are also part of the government and Zanu-PF’s indigenisation and empowerment policy, adding the law will be enforced to make sure all companies comply.
But Employers’ Confederation of Zimbabwe director John Mufukare said forcing companies to buy some expensive local raw materials will hurt firms that are already struggling under harsh economic conditions.
According to the state-controlled Herald newspaper, in 2012 alone, Zimbabwe is said to have imported goods worth $8.2 billion compared to exports amounting to $5 billion.
Under the empowerment law, foreign companies operating in the country are expected to transfer equity stakes of up to 51% to indigenous people.