Zimbabwe ring-fences 14 eco­nomic sec­tors for loc­als

Zimbabwe has gazetted sweeping new indigenisation regulations that reserve 14 economic sectors exclusively for citizens, while compelling foreign-owned businesses operating in designated sectors to cede a controlling 75 percent shareholding to indigenous Zimbabweans within three years.

The policy is contained in Statutory Instrument 215 of 2025, titled Indigenisation and Economic Empowerment (Foreign Participation in Reserved Sectors) Regulations, 2025. Under the regulations, foreign investors are required to dispose of at least 25 percent equity to locals each year, enforcing a phased but accelerated transfer of ownership and control.

Sectors now fully ring-fenced for Zimbabweans include barber shops, hairdressing and beauty salons, valet services, employment agencies, advertising agencies, pharmaceutical retailing, bakeries, tobacco grading and packaging, artisanal mining and borehole drilling, among others.

Foreign-owned businesses affected by the regulations are required to submit regularisation and compliance plans within 30 days of the regulations being gazetted.

The new framework introduces multiple tiers of economic empowerment across different sectors. Ten sectors have been declared exclusively reserved for indigenous participation, while three reserved sectors allow limited foreign involvement only where businesses operate under a recognised international brand or franchise.

In addition, four reserved sectors permit foreign participation subject to strict minimum thresholds for investment capital or employment creation. Passenger transport services - including buses, taxis and car hire - as well as estate agencies and clearing and customs services, will only allow foreign participation if businesses operate under an international brand or franchise arrangement.

Minimum investment and employment thresholds have also been set for foreign-owned firms seeking to operate in certain sectors. Retail and wholesale businesses now require a minimum investment of US$20 million and at least 200 employees. Grain milling requires US$25 million and 50 employees, haulage and logistics demand a minimum investment of US$10 million with 100 employees, while shipping and forwarding businesses must invest at least US$1 million and employ a minimum of 20 workers.

To qualify for participation, a foreign national or a company with foreign ownership - whether majority or minority - must be registered in Zimbabwe. Applicants must demonstrate compliance with local financial regulations, including tax registration and the maintenance of a local bank account in terms of the Bank Use Promotion Act.

Applicants are also required to submit a comprehensive business plan outlining how the investment will contribute to national development objectives. This includes commitments to sustainable job creation, skills and technology transfer to Zimbabweans, and the development of viable local value chains. Proof of financial capacity, such as bank statements, guarantees or similar documentation from a reputable institution, must accompany the application.

Foreign nationals seeking to operate in reserved sectors must apply for a permit from the Minister of Industry and Commerce. The minister is required to consider applications within 60 days and may request additional information where necessary. Permits may be revoked if applicants fail to meet empowerment obligations or are found to have acted fraudulently during the application process.

The regulations also apply retrospectively to businesses previously owned by Zimbabwean citizens that subsequently transfer ownership, wholly or partially, to foreign nationals. In such cases, the business must immediately comply with the new rules, and the change in ownership must be reported to the ministry within seven days.

The move marks a significant tightening of Zimbabwe's indigenisation framework, reinforcing the government's push to increase local ownership, control and participation across key sectors of the economy.