Online Reporter
Nqobile Bhebhe, Senior Zimpapers Writer
THE Ministry of Industry and Commerce has issued a 30-day ultimatum to foreign investors operating in 13 reserved sectors, directing them to submit regularisation plans starting January 2, 2026.
Under the directive, affected investors must begin divesting at least 75 percent of their equity to Zimbabwean citizens over a three-year period, with a minimum of 25 percent to be transferred annually.
The Government has already gazetted new regulations reserving several sectors of the economy for indigenous Zimbabweans, reinforcing its policy on indigenisation and economic empowerment.
The measures are contained in Statutory Instrument (SI) 215 of 2025, titled Indigenisation and Economic Empowerment (Foreign Participation in Reserved Sectors) Regulations, 2025, published in the Government Gazette Extraordinary on December 11.
The regulations apply to all foreign nationals seeking to operate in reserved sectors, setting strict conditions for participation, compliance or exit.
The SI defines participation broadly. “In order to participate in a reserved sector of the economy, including to go into partnership with or invest a majority or minority stake in or take over a reserved sector business, or to form or start a new business operating exclusively or predominantly in the reserved sector”.
Zimbabwe’s policy seeks to correct historical economic imbalances, empower locals and broaden national economic participation. Similar frameworks exist in countries such as Malaysia, South Africa, Nigeria, Brazil, India, China, Russia and Saudi Arabia, ranging from mandatory ownership transfer to preferential procurement systems.
In a notice issued yesterday, the ministry said: “Foreign operators must divest at least 75 percent of their equity to Zimbabwean citizens over a three-year period, in annual instalments of no less than 25 percent per annum.
“The ministry shall consider an application for operation in the reserved sectors within sixty (60) days and may request additional information from the applicant, if necessary.
“All applications must be addressed to the Permanent Secretary, Ministry of Industry and Commerce and submitted through any of our nearest offices throughout the whole country.”
The ministry has also warned manufacturers against bypassing the law, saying: “Manufacturing companies are hereby notified to utilise the correct channel of distributing manufactured products as only locally owned businesses are allowed to operate in the retailing and wholesaling sector”.
It further stressed that foreign nationals currently operating in reserved sectors “shall, within a period of three years, dispose a minimum of 75 percent) shareholding to Zimbabwean citizens”.
“This disposal shall occur in annual batches of a minimum of 25 percent per annum, such that the foreign investor’s retained shareholding does not exceed 25 percent at the expiration of the three-year period.”
However, the ministry said foreign investors may only participate in specific reserved sectors if they meet prescribed minimum investment and employment thresholds.
Under the retail and wholesale trade, the minimum requirement is 200 workers and an investment of US$20 million. For grain milling, the threshold is 50 workers and US$25 million in investment.
In the haulage and logistics industry, foreign investors must employ at least 100 workers and invest US$10 million, while shipping and forwarding requires a minimum of 20 workers and US$1 million in investment.
The ministry has said that all foreign nationals currently operating in reserved sectors without meeting these thresholds are required to comply with the stipulated transitional framework. Penalties for non-compliance are severe.
Operating in a reserved sector without a permit constitutes a criminal offence, with the SI warning that offenders are liable to fines or imprisonment, while repeat offenders may be barred from doing business with Government entities for five years.
