Herald Reporter
FOREIGN-OWNED businesses operating in economic sectors reserved for citizens face tighter compliance enforcement, with the Government warning that non-compliant operators risk having their licences suspended or revoked as authorities step up implementation of the indigenisation regulations.
Hupfumi Hwedu Indigenous Resources Association (HHIRA) has called on foreign-owned businesses operating in such sectors to regularise their operations in line with the law, while offering to facilitate partnerships with local investors.
The call follows a recent Cabinet update indicating that most foreign-owned businesses operating in reserved sectors had yet to comply with 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 all 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.
Sixty-three entities qualified for exemptions based on prescribed investment thresholds or recognition as international brands.
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.
Foreign participation in certain other sectors, including retail and wholesale trade, haulage and logistics, grain milling, and shipping and forwarding, is permitted subject to specified conditions and exemptions.
Cabinet said the Ministry of Industry and Commerce would strengthen enforcement, including suspending or revoking the operating licences of businesses that fail to comply with the regulations.
Against this background, HHIRA chairperson Mr Nyasha Munangwa said the association was ready to help affected businesses understand the requirements and identify suitable Zimbabwean partners.
“Any foreign-owned business trading in an exclusively reserved sector without a lawful exemption or an approved Regularisation Plan is operating outside the law,” he said.
Mr Munangwa said HHIRA would work to identify qualified Zimbabweans interested in acquiring equity in businesses required to regularise their ownership structures.
He also said structured arrangements could help prospective local investors acquire shares over time, rather than relying solely on immediate cash purchases.
“No business may claim that no Zimbabwean buyer exists,” he said.
“Through structured earn-in equity, capable citizens can acquire shareholdings paid for over time from the value they contribute and from future profits. Lack of a cash buyer is not a defence.”
HHIRA urged foreign-owned businesses to review their compliance status, submit any outstanding Regularisation Plans to the Ministry of Industry and Commerce and engage potential local partners where necessary.
The association also emphasised the importance of transparency in ownership arrangements, saying compliance should reflect genuine changes in equity ownership rather than nominal transfers that leave beneficial ownership undisclosed.
Mr Munangwa said the objective should be to create opportunities for Zimbabweans to participate meaningfully in the economy while allowing businesses to plan for an orderly transition in accordance with the regulations.
