By Patience Gondo
ZIMBABWE has introduced new regulations banning foreign nationals from participating in several key sectors of the economy.
The move is aimed at economically empowering local citizens.
The rules are published under the Indigenisation and Economic Empowerment (Foreign Participation in Reserved Sectors) Regulations 2025 through Statutory Instrument 215 of 2025.
They identify 17 sectors and sub-sectors that are either reserved exclusively for Zimbabweans or open to foreign investors only under strict conditions.
Sectors now exclusively reserved for Zimbabweans include barber shops, hairdressing and beauty salons, advertising agencies, employment agencies, estate agencies, bakeries, tobacco grading and packaging
and artisanal mining.
Other areas such as passenger transport, clearing and forwarding and local arts and crafts marketing are closed to foreign investors unless operating under international franchises.
The regulations set capital and employment thresholds for foreign investors in certain sectors. For example retail and wholesale trade require US$20 million in investment and 200 full-time employees. Grain milling requires US$25 million and 50 employees, haulage and logistics need US$10 million and 100 employees while shipping and forwarding require US$1 million and 20 employees.
These thresholds are meant to ensure foreign investors bring significant capital and create jobs.
The rules build on the Indigenisation and Economic Empowerment Act of 2008 which was designed to increase local ownership in the economy. While some restrictions were relaxed in recent years to attract foreign investment the government is now enforcing tighter controls in specific sectors.
Existing foreign owned businesses in the affected sectors have a three year transition period to comply. They must sell at least 75% of their shares to Zimbabwean citizens at 25% per year.
Failure to meet these requirements may lead to loss of licences or deregistration.