The law firm of choice for internationally focused companies

+263 242 744 677

admin@tsazim.com

4 Gunhill Avenue,

Harare, Zimbabwe

Zimbabwe sets deadline for foreign businesses to comply with local ownership laws

The
directive
follows
the
gazetting
of
Statutory
Instrument
215
of
2025, which
was
published
in
an
Extraordinary
Government
Gazette
on
December
11.

The
regulations,
formally
titled Indigenisation
and
Economic
Empowerment
(Foreign
Participation
in
Reserved
Sectors)
Regulations,
2025
,
strengthen
the
government’s
policy
of
reserving
certain
areas
of
the
economy
for
Zimbabwean
citizens
and
limiting
foreign
participation.

According
to The
Herald
,
the
new
rules
require
foreign-owned
businesses
operating
in
these
sectors
to
outline
how
they
will
comply
with
the
indigenisation
framework,
including
ownership
and
participation
requirements.

The
move
is
part
of
broader
efforts
by
the
Government
of
Zimbabwe
to
promote
local
ownership
and
economic
empowerment,
particularly
in
industries
deemed
accessible
to
indigenous
entrepreneurs.

In
December, IOL
reported
that
Zimbabwe
had
formally
reserved
14
economic
sectors
exclusively
for
its
citizens,
while
ordering
foreign-owned
businesses
operating
in
designated
industries
to
surrender
a
controlling
75%
stake
to
locals
within
three
years
.

The
measures
are
contained
in
Statutory
Instrument
215
of
2025,
titled Indigenisation
and
Economic
Empowerment
(Foreign
Participation
in
Reserved
Sectors)
Regulations,
2025
,
which
requires
foreign
investors
to
offload
a
minimum
of
25%
equity
annually
to
Zimbabweans,
ensuring
a
phased
but
accelerated
localisation
of
ownership
and
control.

According
to
the
state
broadcaster,
the
Zimbabwe
Broadcasting
Corporation
(ZBC),
the
newly
gazetted
law
ring-fences
everyday
sectors
for
local
investors,
including
passenger
transport
services
such
as
taxis
and
buses,
barber
shops,
hairdressing
and
beauty
salons,
bakeries,
employment
agencies,
advertising
agencies,
tobacco
grading
and
packaging,
artisanal
mining,
borehole
drilling
and
pharmaceutical
retailing.

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


jonisayi.maromo@iol.co.za

Post
published
in:

Featured