400+ foreign companies apply to continue operating in Zimbabwe's reserved sectors

More than 400 foreign-owned companies operating in sectors reserved for Zimbabwean citizens have applied for permission to continue doing business following the introduction of new regulations aimed at protecting local entrepreneurs.

Speaking before a joint sitting of the Parliamentary Portfolio Committee on Industry and Commerce and the Thematic Committee on Indigenisation and Economic Empowerment, Industry and Commerce Minister Mangaliso Ndhlovu said his ministry had received 432 applications from foreign-owned businesses seeking approval to remain in 21 sectors reserved for indigenous Zimbabweans.

The applications followed the gazetting of Statutory Instrument 215 of 2025 in December last year, which designated 21 low-capital economic sectors exclusively for Zimbabwean citizens.

"Following the gazetting of Statutory Instrument 215 of 2025 in December 2025, the Ministry received a total of 432 applications from foreign-owned businesses seeking to continue operations in 21 of the Reserved Sectors. Over 280 companies have since been approved," Ndhlovu told legislators.

The minister said foreign participation remains particularly prevalent in sectors such as wholesale and retail trade, haulage and logistics, and brick moulding. He added that the Government would soon focus its attention on compliance within the artisanal and small-scale mining sector.

"Currently, the ministry is conducting a national Reserved Sector Compliance Awareness exercise to reinforce adherence to Statutory Instrument 215 of 2025," Ndhlovu said.

"The programme is designed to promote awareness of reserved sector regulations, encourage compliance among business operators, and strengthen the participation of Zimbabwean citizens in the 21 designated economic sectors."

According to the minister, the campaign is intended to engage stakeholders across the country, assess compliance levels and provide guidance to both foreign nationals and local entrepreneurs to ensure a uniform understanding of the law and prevent disputes arising from misinformation or misinterpretation.

The reserved sectors policy forms part of the Government's broader effort to empower local businesses by limiting foreign participation in industries considered accessible to indigenous entrepreneurs due to their relatively low capital requirements.

By restricting foreign involvement, authorities say the policy will help ensure profits remain within local communities while protecting Zimbabwean-owned enterprises from competition by better-resourced foreign operators.

"Reserving sectors is not unique to Zimbabwe, but a common practice across the world," Ndhlovu said.

He noted that ministry research had revealed continued foreign dominance in some sectors designated for locals, particularly borehole drilling, haulage and logistics, shipping and forwarding, and more recently artisanal and small-scale mining.

"This dominance is often facilitated through fronting, capital advantages, and advanced technology that local businesses struggle to match," he said.

"In some instances, foreign-owned firms undercut prices, evade taxes, and exploit loopholes in enforcement mechanisms, thereby eroding the competitiveness of indigenous businesses."

The Government maintains that stricter enforcement of the reserved sectors framework will create greater opportunities for Zimbabwean entrepreneurs while ensuring compliance with the country's economic empowerment policies.