Zimbabwe sets deadline for foreign businesses to comply with local ownership laws

Zimbabwe’s government has instructed foreign nationals operating in sectors reserved for locals to submit regularisation plans by January 31, according to a report by the state-owned The Herald.

The directive follows the gazetting of Statutory Instrument 215 of 2025, which was published in an Extraordinary Government Gazette on December 11.

The regulations, formally titled Indigenisation and Economic Empowerment (Foreign Participation in Reserved Sectors) Regulations, 2025, strengthen the government’s policy of reserving certain areas of the economy for Zimbabwean citizens and limiting foreign participation.

According to The Herald, the new rules require foreign-owned businesses operating in these sectors to outline how they will comply with the indigenisation framework, including ownership and participation requirements.

The move is part of broader efforts by the Government of Zimbabwe to promote local ownership and economic empowerment, particularly in industries deemed accessible to indigenous entrepreneurs.

In December, IOL reported that Zimbabwe had formally reserved 14 economic sectors exclusively for its citizens, while ordering foreign-owned businesses operating in designated industries to surrender a controlling 75% stake to locals within three years.

The measures are contained in Statutory Instrument 215 of 2025, titled Indigenisation and Economic Empowerment (Foreign Participation in Reserved Sectors) Regulations, 2025, which requires foreign investors to offload a minimum of 25% equity annually to Zimbabweans, ensuring a phased but accelerated localisation of ownership and control.

According to the state broadcaster, the Zimbabwe Broadcasting Corporation (ZBC), the newly gazetted law ring-fences everyday sectors for local investors, including passenger transport services such as taxis and buses, barber shops, hairdressing and beauty salons, bakeries, employment agencies, advertising agencies, tobacco grading and packaging, artisanal mining, borehole drilling and pharmaceutical retailing.

ZBC reported that estate agencies, clearing and customs services, shipping and freight forwarding, and haulage and logistics are also affected, with foreign participation permitted only under strict conditions or through recognised international brands and franchises.

jonisayi.maromo@iol.co.za

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