Online Reporter
Martin Kadzere
Business Reporter
ZIMBABWE has gazetted regulations mandating foreign-owned businesses in designated reserved sectors to divest a controlling 75 percent shareholding to indigenous people within three years.
The new policy, under Statutory Instrument 215 of 2025: Indigenisation and Economic Empowerment (Foreign Participation in Reserved Sectors) Regulations, 2025, requires a minimum of 25 percent of the foreign equity to be sold to locals each year, ensuring a phased but rapid localisation of ownership and control.
From the date of the gazetting of the regulations, foreign-owned businesses are required to submit their regularisation plans within 30 days.
The regulations introduce a multi-tiered framework for economic empowerment across several key sectors. Ten specific sectors have been declared exclusively reserved for participation by indigenous citizens.
Three of the reserved sectors offer exceptions, permitting foreign firms to operate only if they are utilising and promoting a recognised international brand or franchise.
The regulations also specify four reserved sectors where foreign participation is allowed, provided the businesses meet certain minimum thresholds for investment and employment levels.
Sectors now ring fenced for Zimbabwean citizens include barber shops, hairdressing and beauty salons, valet services, employment agencies, advertising agencies, and pharmaceutical retailing, bakeries, tobacco grading and packaging, artisanal mining and Borehole drilling.
Passenger transport such as buses, taxis, car hire, estate agencies, and clearing and customs—allow foreign participation only if the businesses operate under international brand or franchise.
Minimum thresholds have been gazetted for foreign owned businesses seeking to participate in reserved sectors.
The retail and wholesale sector now requires a minimum investment of US$20 million and 200 employees, grain milling mandates at least US$25 million and 50 employees, haulage and logistics Industry must meet a minimum US$10 million investment with 100 employees while the shipping and forwarding sector requires a minimum investment of US$1 million and 20 workers.
