Online Reporter
Nyore Madzianike
Senior Reporter
MORE than 400 foreign companies operating in reserved economic sectors have applied for permission to continue operating following the gazetting of Statutory Instrument 215 of 2025 in December last year.
The statutory instrument provides for the reservation of certain economic sectors for Zimbabwean citizens in 21 low-capital sectors where entrepreneurs can easily establish businesses.
Appearing before the joint Parliamentary Portfolio Committee on Industry and Commerce and Thematic Committee on Indigenisation and Economic Empowerment, Industry and Commerce Minister Mangaliso Ndhlovu said the ministry had received 432 applications from foreign-owned businesses seeking to continue operating in the 21 reserved sectors.
“Following the gazetting of Statutory Instrument 215 of 2025 in December 2025, the Ministry received a total of 432 applications from foreign-owned businesses seeking to continue operations in 21 of the Reserved Sectors. Over 280 companies have since been approved,” he said.
Minister Ndhlovu said the most foreign-dominated sectors include wholesale and retail trade, haulage and logistics, and brick moulding.
He said the ministry would soon turn its attention to the artisanal and small-scale mining sector.
“Currently, the ministry is conducting a national Reserved Sector Compliance Awareness exercise to reinforce adherence to Statutory Instrument 215 of 2025,” he said.
“The programme is designed to promote awareness of reserved sector regulations, encourage compliance among business operators, and strengthen the participation of Zimbabwean citizens in the 21 designated economic sectors.
“The exercise allows engagement with all stakeholders, assessing compliance levels, and providing guidance to both foreign nationals and local citizens to ensure transparency, uniform understanding of statutory requirements, and the avoidance of misinformation, misinterpretation, or conflict among sector players in the implementation of the reserved sector regulations.”
By restricting foreign participation, the Government seeks to protect low-capital investment sectors from external competition and ensure that profits remain within Zimbabwean communities.
The policy protects local citizens from foreign competition, particularly in sectors with low barriers to entry or those that are not highly capital-intensive.
“Reserving sectors is not unique to Zimbabwe, but a common practice across the world,” said Minister Ndhlovu.
“From the research conducted by the ministry, it was noted that foreign nationals continue to dominate certain reserved sectors, particularly in sectors such as borehole drilling, haulage and logistics, and shipping and forwarding and lately artisanal small-scale mining.
“This dominance is often facilitated through fronting, capital advantages, and advanced technology that local businesses struggle to match.
“In some instances, foreign-owned firms undercut prices, evade taxes, and exploit loopholes in enforcement mechanisms, thereby eroding the competitiveness of indigenous businesses.”
