Zimbabwe has enacted sweeping new indigenisation regulations requiring foreign‑owned businesses in 14 designated sectors to transfer 75 percent ownership to local citizens within three years.
The measures, contained in Statutory Instrument 215 of 2025, mandate foreign investors to offload at least 25 percent equity annually, ensuring phased localisation of ownership and control.
Companies that fail to comply must submit regularisation plans within 30 days of the regulations being gazetted, according to state media.
The reserved sectors include passenger transport services, barber shops, hairdressing and beauty salons, bakeries, employment agencies, advertising agencies, tobacco grading and packaging, artisanal mining, borehole drilling and pharmaceutical retailing.
Estate agencies, customs clearing, shipping, freight forwarding and haulage are also covered, with foreign participation allowed only under strict conditions or through recognised international brands.
The move marks a sharp expansion of Zimbabwe’s indigenisation policy, first introduced in 2008 under the Indigenisation and Economic Empowerment Act, which required foreign‑owned firms in key industries such as mining to cede 51 percent ownership to locals.
That earlier policy was later relaxed amid criticism that it deterred investment and deepened economic instability.
Officials say the new regulations are aimed at accelerating economic empowerment and restricting foreign dominance in everyday industries but analysts warn they could reignite investor concerns at a time when Zimbabwe is seeking to stabilise its economy.
JN/APA