Story by Owen Mandovha
STAKEHOLDERS in the transport and mining sectors have welcomed the promulgation of laws reserving certain sectors of the economy exclusively for local citizens.
The statutory instrument prohibiting the participation of foreign nationals in designated reserved sectors has been largely welcomed by players in the transport industry, who have for years raised concerns over the dominance of foreign-owned entities, particularly those linked to mining operations, across the transport value chain.
Zimbabwe Indigenous Transporters Association Chairperson, Mr Simon Gambiza, said the development will enable local operators to reclaim their space in the industry.
“There are large mining companies that use their own transport subsidiaries to ferry commodities to export destinations and to move raw materials from source. This has limited our participation in the industry. Government has now acted, allowing local transporters to return to business,” he said.
The Zimbabwe Union of Drivers and Conductors (ZUDAC) said the move was long overdue, noting that foreign nationals had dominated the passenger transport sector.
ZUDAC Secretary-General, Mr Frederick Magumamhinga, said the intervention will protect local operators and curb the emergence of cartels.
“Foreigners had taken over the passenger transport business, limiting opportunities for local players. Some cartels were even forming, so Government has done well to ensure that locals can fully participate in the economy,” he said.
Meanwhile, the artisanal and small-scale mining sector, which contributes about 70 percent of national gold output, has also been reserved for local citizens, a move welcomed by the Zimbabwe Miners Federation (ZMF).
ZMF president, Ms Henrietta Rushwaya, said the policy will further strengthen the contribution of artisanal miners.
“This will grow the contribution of artisanal miners, who have already surpassed their targets this year. Maximum local citizen participation is good for the sector, while foreign investors can move up the value chain to make more meaningful contributions to mining,” she said.
Government says the move to reserve certain sectors of the economy including retail, pharmaceuticals, and freight forwarding is aimed at safeguarding the interests of locals through maximum citizen participation, while ensuring that foreign investors contribute effectively to economic growth and national development.
