Herald Reporter
THE Hupfumi Hwedu Indigenous Resources Association (HHIRA) has offered to help foreign-owned businesses operating in reserved economic sectors comply with the country’s indigenisation regulations by facilitating partnerships with local investors.
The initiative follows a Cabinet update indicating that many foreign-owned businesses operating in the affected sectors had yet to regularise their operations under Statutory Instrument 215 of 2025, despite nationwide awareness campaigns and inspections.
In its October 20 briefing, Cabinet reported that inspections covering more than 3 000 companies had been completed across the country’s 10 provinces, with 693 formal compliance applications received.
Of these, 269 foreign operators had applied for regularisation through plans requiring the transfer of at least 75 percent equity to Zimbabweans over three years, while 144 entities had sought verification of their local status or statutory exemptions.
A further 63 entities qualified for exemptions based on prescribed investment thresholds or recognition as international brands.
HHIRA chairperson Mr Nyasha Munangwa said the association was ready to help affected businesses understand the requirements, identify suitable local partners and develop practical arrangements for compliance.
He said structured equity arrangements could allow Zimbabwean investors to acquire shares over time, easing the need for large upfront cash payments.
“Through structured earn-in equity, capable citizens can acquire shareholdings paid for over time from the value they contribute and from future profits,” he said.
The regulations reserve 17 economic sectors for Zimbabweans, 13 of them exclusively.
These include borehole drilling, customs clearing, tobacco grading and packaging, estate agencies and artisanal mining.
Participation by foreign investors in other sectors, including retail and wholesale trade, haulage and logistics, is permitted subject to specified conditions and exemptions.
Cabinet said the Ministry of Industry and Commerce would strengthen implementation, including enforcement measures for businesses that fail to meet the requirements.
HHIRA secretary-general Mr Johannes Mtetwa said compliance should be pursued in ways that support business continuity, employment creation and skills transfer.
“Zimbabwe welcomes lawful investment that builds factories, creates jobs and transfers skills,” he said, adding that the association was ready to help make the transition orderly and commercially sound.
Under SI 215 of 2025, affected existing businesses are required to submit Regularisation Plans, with applicable equity transfers to be completed over three years in annual tranches of at least 25 percent.
The framework provides for exemptions for qualifying businesses that meet prescribed criteria.
HHIRA said its efforts were aimed at widening local participation in the economy while enabling businesses to plan for compliance and contribute to Zimbabwe’s development objectives under Vision 2030 and the National Development Strategy 2.
