Online Reporter
Zimpapers Writer
Government has extended the deadline for foreign nationals operating in reserved sectors of the economy to submit their regularisation plans from January 31 to February 17, 2026.
The extension follows the recent promulgation of Statutory Instrument 215 of 2025, titled the Indigenisation and Economic Empowerment (Foreign Participation in Reserved Sectors) Regulations, which seeks to reinforce local empowerment and regulate foreign involvement in specific industries.
Industry and Commerce Permanent Secretary, Dr Thomas Utete Wushe, confirmed the new timeline yesterday, citing a surge in applications from business owners looking to comply with the new law.
“We have extended the deadline to 17 February due to overwhelming response,” Dr Wushe said.
“People are still coming, and those who fail to submit will be considered in breach.”
Early this year, the Ministry directed all affected stakeholders to submit their plans at provincial offices in Bulawayo,Harare, Masvingo, Gwanda, Lupane, Mutare, Chinhoyi, Gweru, Bindura and Marondera.
A prerequisite for submission is valid proof of payment for the Standards Development Fund (SDF) Levy.
The reserved areas include barber shops and beauty salons, bakeries, employment agencies, advertising agencies, artisanal mining, valet services, borehole drilling, pharmaceutical retailing, small-scale grain milling and the marketing and distribution of local arts and crafts.
Passenger transport, real estate agencies and customs clearing services are also restricted, except for recognised international brands.
Where foreign participation is permitted, entry thresholds are deliberately high.
For instance, retail and wholesale investors must commit US$20 million and employ at least 200 full-time workers; grain milling requires US$25 million and logistics demand US$10 million and 100 employees.
The SI also introduced strict rules on beneficial ownership to curb the use of fronts.
Authorities may demand sworn declarations and any person who fails or makes a false declaration faces a fine not exceeding level eight or imprisonment of three to five years.
Foreign-owned businesses already operating in reserved sectors have 30 days to submit regularisation plans and must divest 75 percent of their equity to Zimbabwean citizens within three years, in annual tranches of no less than 25 percent.
The SI specifies: “Foreign nationals operating in the reserved sector shall, within a period of three years, divest a minimum of seventy-five per centum (75 percent) of their equity to Zimbabwean citizens.
The Minister of Industry and Commerce retains the ultimate authority to approve, reject, or revoke participation permits based on an investor’s compliance with empowerment obligations.
Operating in a reserved sector without a permit is classified as a criminal offence, with the SI warning that offenders are liable to fines or imprisonment.
Repeat offenders may also be barred from doing business with Government entities for five years.
