Zimbabwe's new rules raise bar for foreign firms

The government has ordered foreign companies operating in reserved sectors of the economy to submit regularisation plans by January 31, as authorities move to tighten compliance and protect local enterprises.

The Ministry of Industry and Commerce said the regulations contained in Statutory Instrument (SI) 215 of 2025 are designed to safeguard indigenous businesses, promote domestic capital formation and ensure that profits generated in Zimbabwe are retained within the country.

SI 215 of 2025 reserves key sectors of the economy for indigenous Zimbabweans and introduces strict conditions under which foreign investors may continue operating. The policy shift is aimed at accelerating local ownership, boosting employment creation and strengthening value retention, while compelling existing foreign businesses to either comply with the new framework, divest or exit restricted sectors.

Gazetted in December last year, the regulations provide a clearer operating framework in sectors including retail trade, transport services, advertising, estate agencies, bakeries, tobacco grading and other service industries.

In a statement, the ministry called on all foreigners currently operating in reserved sectors to submit their regularisation plans by the end of the month.

"All foreigners operating in the Reserved Sectors must submit Regularisation Plans by the 31st of January 2026 at any Ministry of Industry and Commerce office in Harare, Bulawayo, Masvingo, Mutare, Chinhoyi, Gweru, Bindura, Marondera, Gwanda and Lupane," the ministry said.

The ministry added that proof of payment of the Standards Development Fund (SDF) Levy is a prerequisite for submitting the regularisation plans. To ease compliance, government has allowed the SDF Levy to be paid directly at the Ministry of Industry and Commerce offices at Mukwati Building in Harare.

Under SI 215 of 2025, foreign entities are prohibited from operating in fully reserved sectors such as artisanal mining, bakeries, advertising agencies, salons, employment agencies and the local arts and crafts industry.

Foreign investors seeking to operate in partially reserved sectors, including retail and haulage, are required to meet strict investment and employment thresholds and commit to majority local ownership. In the retail sector, foreign firms must invest a minimum of US$20 million and employ at least 200 full-time workers.

In the haulage industry, foreign companies are required to invest at least US$10 million and employ a minimum of 100 workers. Grain milling operations require a minimum investment of US$25 million and at least 50 employees, while shipping and forwarding firms must invest at least US$1 million and employ no fewer than 20 workers.

The transport, estate agency and customs clearing sectors remain exclusively reserved for Zimbabweans, with limited exceptions granted to established international brands.

Existing foreign-owned businesses operating in reserved sectors have been given a three-year transition period to divest, during which they are required to dispose of at least 75% of their shareholding to Zimbabwean citizens at a rate of 25% per year.

"Regularisation plans must be addressed to the Permanent Secretary, Ministry of Industry and Commerce," the ministry said.