Zimbabwe Mandates Foreign Investors to Reduce Ownership to 25% Within Three Years
Law: SI 215 of 2025 | Deadline: Dec 2028 | Equity Split: 75/25
Foreign business owners operating in Zimbabwe now face a critical deadline following the enactment of Statutory Instrument 215 of 2025. The regulation requires foreign nationals in sectors reserved for indigenous Zimbabweans to divest the majority of their ownership, ensuring that at least 75% of shares or stakes are held by local citizens. This policy has created significant uncertainty across the business landscape, particularly affecting SMEs, manufacturing, and retail enterprises.
Foreign investors are now confronted with a decisive choice: identify Zimbabwean partners to acquire controlling stakes or fully exit the market by December 2028. This landmark move reinforces the country’s indigenisation strategy and is expected to reshape foreign investment trends, business partnerships, and economic ownership structures throughout Zimbabwe.
The New Rules
A compulsory divestment schedule is now law.
MANDATORY SALE
75% Equity
Foreigners must sell 75% of their business shares to Zimbabwean citizens.
THE DEADLINE
December 2028
The transition must be completed within 36 months.
Who Is Affected?
The divestment order applies to these specific sectors:
- Barber shops, hairdressing, and beauty salons.
- Employment agencies.
- Estate agencies.
- Advertising agencies.
- Valet services.
- Bakeries and grain milling (below investment threshold).
- Pharmaceutical retailing.
- Marketing/distribution of local arts and crafts.
- Artisanal mining and borehole drilling.
Passenger bus services, taxis, and car hire firms.
The "Million Dollar" Path
Foreigners can only retain control in these sectors if they meet massive investment thresholds.
RETAIL & WHOLESALE
Entry Requirement
$20 Million USD Investment + 200 Employees.
LOGISTICS & HAULAGE
Entry Requirement
$10 Million USD Investment + 100 Employees.
The Goal: Citizen Empowerment
While large-scale mining and banking remain open, the core of the local economy is being firmly ring-fenced for Zimbabweans.
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