By Emmanuel Nduka Obisue
Zimbabwe has moved to reserve 14 economic sectors exclusively for its citizens, ordering foreign-owned businesses operating in the affected industries to cede majority ownership to locals within three years.
The measures are contained in Statutory Instrument 215 of 2025, titled Indigenisation and Economic Empowerment (Foreign Participation in Reserved Sectors) Regulations, 2025. Under the new rules, foreign investors must offload at least 25 per cent equity annually to Zimbabweans until locals hold a controlling 75 per cent stake.
According to the Zimbabwe Broadcasting Corporation (ZBC), the regulations ring-fence several everyday and small-scale sectors for local participation. These include passenger transport services such as taxis and buses, barber shops, hairdressing and beauty salons, bakeries, employment and advertising agencies, tobacco grading and packaging, artisanal mining, borehole drilling and pharmaceutical retailing.
Other affected sectors include estate agencies, clearing and customs services, shipping and freight forwarding, as well as haulage and logistics. In these areas, foreign participation will only be permitted under strict conditions or through recognised international brands and franchise arrangements.
Local Zimbabwean media reported that foreign-owned firms currently operating in reserved sectors have been given a three-year window to comply. Companies that fail to meet the new ownership thresholds must submit regularisation plans within 30 days of the regulations being gazetted.
The paper added that affected businesses are required to divest a minimum of 25 per cent shareholding each year until Zimbabweans control at least 75 per cent of the enterprise.
The regulations also criminalise attempts to circumvent the law, including the use of fronting arrangements, and grant authorities the power to suspend or cancel licences of non-compliant businesses.
Foreign participation will remain permissible in certain capital-intensive industries, including retail and wholesale trade, grain milling, haulage and logistics, shipping and forwarding, provided strict investment and employment thresholds are met.
The government says the policy is aimed at protecting low-barrier industries from foreign dominance while expanding local participation and ownership in the economy.
