Online Reporter
Tapiwanashe Mangwiro
The Government has gazetted new regulations reserving several sectors of the economy for indigenous Zimbabweans, reinforcing the country’s policy on indigenisation and economic empowerment of locals.
This is contained in Statutory Instrument 215 of 2025, titled Indigenisation and Economic Empowerment (Foreign Participation in Reserved Sectors) Regulations, 2025, which was published in the Government Gazette Extraordinary on December 11, 2025.
“They apply to all foreign nationals, not being citizens of Zimbabwe, who wish to participate in a reserved sector of the economy,” setting out strict conditions under which foreign investors may operate, or exit certain lines of business.
The SI defines participation broadly, stating, “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.”
Among countries with policies that reserve economic sectors for local participation or promote local content are Malaysia, South Africa, Nigeria, Brazil, India, China, Russia and Saudi Arabia.
These policies vary widely in their scope and implementation, from mandatory ownership transfer to preferential government procurement.
For instance, Malaysia’s New Economic Policy (NEP) and its successor policies have long-standing affirmative action programmes aimed at restructuring the economy to increase the wealth and participation of the native Malay (Bumiputra) population in various sectors, including education and business ownership.
South Africa has the Black Economic Empowerment (BEE) policies, such as the Employment Equity Act, to promote the advancement of previously disadvantaged racial groups in the workplace and encourage black ownership and control of the economy.
The SA Government procurement policies often prioritise black-owned companies.
In Zimbabwe’s case, the reserved areas include barber shops and beauty salons, bakeries, employment agencies, advertising agencies, artisanal mining, valet services, borehole drilling, pharmaceutical retailing, small-scale grain milling and the marketing and distribution of local arts and crafts.
Passenger transport, real estate agencies and clearing and customs services are also restricted, except for recognised international brands.
Where foreign participation is permitted, the entry bar has been set deliberately high. In retail and wholesale trade, foreign investors must employ at least 200 full-time workers and commit a minimum investment of US$20 million.
In grain milling, the investor must employ at least 50 employees and inject a minimum of US$25 million, while for haulage and logistics businesses, the investor should employ at least 100 employees and invest a minimum of US$10 million.
Zimbabwe’s “reserved areas” legislation, primarily governed by the Indigenisation and Economic Empowerment Act, restricts foreign ownership and participation in specific economic sectors to empower local citizens.
