Foreign nationals in Zimbabwe's reserved sectors granted 17-day extension

The Government has extended the deadline for foreign nationals operating in reserved sectors to submit their regularisation plans from January 31 to February 17, 2026, following a surge in applications from business owners seeking to comply with the law.

The extension comes after the promulgation of Statutory Instrument 215 of 2025, titled the Indigenisation and Economic Empowerment (Foreign Participation in Reserved Sectors) Regulations. The regulations aim to reinforce local empowerment while regulating foreign involvement in specific industries.

Industry and Commerce Permanent Secretary Dr Thomas Utete Wushe confirmed the extension, citing the overwhelming response from foreign investors. He warned that anyone failing to submit their plans by the new deadline would be considered in breach of the law.

Affected stakeholders have been instructed to submit their regularisation plans at provincial offices in Harare, Bulawayo, Masvingo, Mutare, Chinhoyi, Gweru, Bindura, Marondera, Gwanda, and Lupane, with proof of payment for the Standards Development Fund Levy as a prerequisite.

The reserved sectors include barber shops, beauty salons, bakeries, employment and advertising agencies, artisanal mining, valet services, borehole drilling, pharmaceutical retailing, small-scale grain milling, and the marketing and distribution of local arts and crafts. Certain services, such as passenger transport, real estate agencies, and customs clearing, are also restricted to foreign operators, except for recognised international brands.

The SI sets high entry thresholds where foreign participation is permitted, with retail and wholesale investors required to commit US$20 million and employ at least 200 full-time workers, grain milling requiring US$25 million, and logistics demanding US$10 million and 100 employees. The regulations also introduce strict rules on beneficial ownership, requiring sworn declarations, with non-compliance or false statements punishable by fines or three to five years' imprisonment.

Foreign-owned businesses already operating in reserved sectors are required to divest 75 percent of their equity to Zimbabwean citizens over a three-year period, in annual tranches of no less than 25 percent. The Minister of Industry and Commerce retains authority to approve, reject, or revoke participation permits based on compliance, and operating in a reserved sector without a permit is classified as a criminal offence. Repeat offenders may be barred from doing business with government entities for up to five years.

Dr Wushe stressed that the extension is intended to give investors sufficient time to comply with the new regulations while emphasising that the government remains committed to protecting local interests and promoting economic empowerment.