Zimbabwe Bans Foreigners From Businesses Reserved For Locals

Zimbabwe Bans Foreigners From Local Sectors

Policy: Indigenisation Regulations 2025 | Status: Immediate Effect | Impact: Reserved Sectors

The Government of Zimbabwe has enacted a major economic policy shift. The newly gazetted Indigenisation and Economic Empowerment Regulations, 2025 bar foreign nationals from operating in over a dozen business sectors. This move reshapes the business landscape, reserving industries like transport, baking, and beauty services exclusively for locals.

While small-scale sectors are now off-limits, massive investment hurdles of up to US$20 million have been introduced for foreigners wishing to enter the retail and logistics trades.

Reserved Sectors Investment Hurdles Grace Period Economic Goal

Exclusive to Zimbabweans

Foreign ownership is now completely prohibited in the following areas:

Passenger buses, taxis, and car hire services.

(Exception: International brands are exempt).

1. Barber shops, hairdressing, and beauty salons.
2. Employment agencies.
3. Valet services.
4. Advertising agencies.
5. Estate agencies (Except international brands).
6. Clearing and customs agencies (Except international brands).

1. Bakeries.
2. Pharmaceutical retailing.
3. Tobacco grading, processing, and packaging.
4. Artisanal mining.
5. Borehole drilling.
6. Marketing and distribution of local arts and crafts.

The "Pay to Play" Sectors

Foreigners may only enter these sectors if they meet massive thresholds.

RETAIL & WHOLESALE

Min Investment

Must employ at least 200 full-time staff.

$20M USD

HAULAGE & LOGISTICS

Min Investment

Must employ at least 100 full-time staff.

$10M USD

Transition Rules

Foreign-owned businesses currently operating in reserved sectors have been granted a transition period.

THE REQUIREMENT:

1. They must sell 75% of their shares to Zimbabwean citizens.
2. They must divest 25% of equity each year for three years.

The Goal

To reserve small-scale enterprise for locals while directing foreign capital toward large-scale investment.

Major sectors like large-scale mining and banking remain unaffected by these specific regulations.

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