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Zimbabwe threatens licence revocations as foreign firms resist ownership rules
2 hrs ago |
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The Zimbabwean Government has threatened to suspend or revoke the operating licences of foreign-owned businesses that fail to comply with regulations governing economic sectors reserved for citizens.
The warning follows inspections of more than 3 000 companies across the country's 10 provinces, with only 693 formal applications for compliance received, according to Cabinet's October 20 briefing.
Government says most foreign-owned businesses operating in reserved sectors have yet to regularise their operations despite awareness campaigns and notices warning them to comply with the law.
"Cabinet noted that despite extensive national campaigns and issuance of non-compliance notices, the majority of foreign-owned entities have not yet regularised as required and that foreign players continue to maintain a significant footprint in reserved sectors including retail and brick moulding, hence stiffer penalties will be implemented," the briefing stated.
The Ministry of Industry and Commerce will suspend or revoke the operating licences of businesses found to be non-compliant, according to the Cabinet statement.
Government gazetted Statutory Instrument 215 of 2025 in December last year, reserving 17 economic sectors for Zimbabwean citizens. Thirteen of these are exclusively reserved, including borehole drilling, clearing and customs, tobacco grading, estate agency and artisanal mining.
Foreign participation may be permitted in certain sectors, including retail and wholesale, haulage and logistics, grain milling, and shipping and forwarding, subject to exemptions.
Of the 693 formal applications received, 269 foreign operators applied for regularisation under arrangements requiring the transfer of 75 percent equity to Zimbabwean citizens.
A further 144 entities applied for confirmation of their local status through exemptions or verification. Of these, 63 entities, representing 13.2 percent of foreign companies, qualified for statutory exemptions after meeting prescribed investment thresholds or being recognised international brands.
The threatened licence suspensions and revocations could have significant implications for businesses that continue operating without meeting the requirements. However, the Cabinet briefing did not identify the companies concerned or specify when enforcement measures would begin.
It also did not provide a deadline for outstanding businesses to regularise their ownership or explain how applications still under consideration would be handled.
The 75 percent equity-transfer requirement remains a key condition for foreign operators seeking regularisation in the reserved sectors. The briefing did not detail how the transfers would be valued, financed or implemented.
Government has indicated that businesses operating in the affected sectors must comply with the regulations or face penalties, signalling a shift from inspections and compliance notices towards stricter enforcement.
The warning follows inspections of more than 3 000 companies across the country's 10 provinces, with only 693 formal applications for compliance received, according to Cabinet's October 20 briefing.
Government says most foreign-owned businesses operating in reserved sectors have yet to regularise their operations despite awareness campaigns and notices warning them to comply with the law.
"Cabinet noted that despite extensive national campaigns and issuance of non-compliance notices, the majority of foreign-owned entities have not yet regularised as required and that foreign players continue to maintain a significant footprint in reserved sectors including retail and brick moulding, hence stiffer penalties will be implemented," the briefing stated.
The Ministry of Industry and Commerce will suspend or revoke the operating licences of businesses found to be non-compliant, according to the Cabinet statement.
Government gazetted Statutory Instrument 215 of 2025 in December last year, reserving 17 economic sectors for Zimbabwean citizens. Thirteen of these are exclusively reserved, including borehole drilling, clearing and customs, tobacco grading, estate agency and artisanal mining.
Foreign participation may be permitted in certain sectors, including retail and wholesale, haulage and logistics, grain milling, and shipping and forwarding, subject to exemptions.
Of the 693 formal applications received, 269 foreign operators applied for regularisation under arrangements requiring the transfer of 75 percent equity to Zimbabwean citizens.
A further 144 entities applied for confirmation of their local status through exemptions or verification. Of these, 63 entities, representing 13.2 percent of foreign companies, qualified for statutory exemptions after meeting prescribed investment thresholds or being recognised international brands.
The threatened licence suspensions and revocations could have significant implications for businesses that continue operating without meeting the requirements. However, the Cabinet briefing did not identify the companies concerned or specify when enforcement measures would begin.
It also did not provide a deadline for outstanding businesses to regularise their ownership or explain how applications still under consideration would be handled.
The 75 percent equity-transfer requirement remains a key condition for foreign operators seeking regularisation in the reserved sectors. The briefing did not detail how the transfers would be valued, financed or implemented.
Government has indicated that businesses operating in the affected sectors must comply with the regulations or face penalties, signalling a shift from inspections and compliance notices towards stricter enforcement.
Source - The Independent
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