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Zimbabwe issues 30-day ultimatum for foreign investors in reserved sectors
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The Ministry of Industry and Commerce has given foreign investors in 13 reserved sectors a 30-day ultimatum to submit regularisation plans, starting January 2, 2026.
Under the directive, investors must divest at least 75 percent of their equity to Zimbabwean citizens over a three-year period, transferring a minimum of 25 percent annually. The move aligns with the Government's broader indigenisation and economic empowerment policy.
The regulations, contained in Statutory Instrument (SI) 215 of 2025, titled Indigenisation and Economic Empowerment (Foreign Participation in Reserved Sectors) Regulations, 2025, were published in the Government Gazette Extraordinary on December 11. They cover all foreign nationals operating in reserved sectors, setting strict conditions for participation, compliance, or exit.
The SI broadly defines participation to include partnerships, majority or minority stakeholding, taking over existing businesses, or starting new businesses in reserved sectors. Similar policies are in place in countries such as Malaysia, South Africa, Nigeria, Brazil, India, China, Russia, and Saudi Arabia, ranging from ownership transfer mandates to preferential procurement requirements.
In a notice issued yesterday, the ministry emphasised that: "Foreign operators must divest at least 75 percent of their equity to Zimbabwean citizens over a three-year period, in annual instalments of no less than 25 percent per annum." Applications to operate in reserved sectors must be submitted to the Permanent Secretary, Ministry of Industry and Commerce, and will be reviewed within 60 days.
The ministry further warned that manufacturers must use proper distribution channels, noting that only locally owned businesses are permitted to operate in retailing and wholesaling. Foreign investors are required to meet minimum investment and employment thresholds: retail and wholesale trade requires at least 200 workers and US$20 million in investment; grain milling requires 50 workers and US$25 million; haulage and logistics, 100 workers and US$10 million; and shipping and forwarding, 20 workers and US$1 million.
Penalties for non-compliance are severe. Operating in a reserved sector without a permit constitutes a criminal offence, with offenders liable to fines or imprisonment. Repeat offenders may also be barred from doing business with Government entities for five years.
The ministry has stressed that all foreign nationals currently operating in reserved sectors without meeting the thresholds must adhere to the transitional framework, signalling a strong push to empower local participation and broaden economic ownership.
Under the directive, investors must divest at least 75 percent of their equity to Zimbabwean citizens over a three-year period, transferring a minimum of 25 percent annually. The move aligns with the Government's broader indigenisation and economic empowerment policy.
The regulations, contained in Statutory Instrument (SI) 215 of 2025, titled Indigenisation and Economic Empowerment (Foreign Participation in Reserved Sectors) Regulations, 2025, were published in the Government Gazette Extraordinary on December 11. They cover all foreign nationals operating in reserved sectors, setting strict conditions for participation, compliance, or exit.
The SI broadly defines participation to include partnerships, majority or minority stakeholding, taking over existing businesses, or starting new businesses in reserved sectors. Similar policies are in place in countries such as Malaysia, South Africa, Nigeria, Brazil, India, China, Russia, and Saudi Arabia, ranging from ownership transfer mandates to preferential procurement requirements.
In a notice issued yesterday, the ministry emphasised that: "Foreign operators must divest at least 75 percent of their equity to Zimbabwean citizens over a three-year period, in annual instalments of no less than 25 percent per annum." Applications to operate in reserved sectors must be submitted to the Permanent Secretary, Ministry of Industry and Commerce, and will be reviewed within 60 days.
The ministry further warned that manufacturers must use proper distribution channels, noting that only locally owned businesses are permitted to operate in retailing and wholesaling. Foreign investors are required to meet minimum investment and employment thresholds: retail and wholesale trade requires at least 200 workers and US$20 million in investment; grain milling requires 50 workers and US$25 million; haulage and logistics, 100 workers and US$10 million; and shipping and forwarding, 20 workers and US$1 million.
Penalties for non-compliance are severe. Operating in a reserved sector without a permit constitutes a criminal offence, with offenders liable to fines or imprisonment. Repeat offenders may also be barred from doing business with Government entities for five years.
The ministry has stressed that all foreign nationals currently operating in reserved sectors without meeting the thresholds must adhere to the transitional framework, signalling a strong push to empower local participation and broaden economic ownership.
Source - The Chronicle
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