New Zimbabwean Laws Reserve 14 Key Sectors for Local Ownership

To protect low-barrier industries from foreign dominance and ensure broader participation of locals in the economy, the Zimbabwean government has adjusted and gazetted legislation accordingly.

Exclusively for local investors only are everyday sectors like passenger transport services, barber shops, hairdressing and beauty salons, bakeries, employment agencies, advertising agencies, and tobacco grading and packaging, according to the new laws.

In total, Zimbabwe has reserved 14 economic sectors for the benefit of its citizens only, while ordering foreign-owned businesses operating in designated industries to surrender a controlling 75% stake to locals within the next three years.

The reforms, titled Indigenisation and Economic Empowerment (Foreign Participation in Reserved Sectors) Regulations, 2025, also stipulate that foreign investors must direct a minimum of 25% equity annually to Zimbabweans to ensure that the localisation of ownership and control happens at a steady rate.

All of the measures are contained in Statutory Instrument 215 of 2025.

The legislation also lists the consequences for those businesses and entities that resort to using "fronting" as a means to circumvent the laws, which would be regarded as a criminal offence that carries serious consequences.

The Zimbabwean Broadcasting Corporation reported that estate agencies, clearing and customs services, shipping and freight forwarding, and haulage and logistics were also affected, with foreign participation permitted only under strict conditions or through recognised international brands and franchises.

According to a state-owned daily, The Herald, foreign-owned companies operating in reserved sectors have been given three years to comply, with non-compliant businesses required to submit regularisation plans within 30 days of the regulations being published.

The newspaper stated that affected firms must divest a minimum of 25% shareholding each year until locals hold a controlling 75% stake. The Herald reported that the regulations criminalise any attempt to circumvent the law, especially fronting arrange

Foreign participation will only be allowed in certain capital-intensive sectors if strict investment and employment thresholds are met, including retail and wholesale trade, grain milling, haulage and logistics, and shipping and forwarding, according to the regulations cited by The Herald.

DAILY NEWS