Zimbabwe Issues New Regulations Limiting Foreign Participation in Reserved Sectors

Key Point  

• Zimbabwe restricted foreign participation in 17 “reserved sectors” and requires existing foreign‑owned businesses to divest majority ownership to Zimbabwean citizens 

Reserved Sector Regulations

Zimbabwe published new regulations under the Indigenisation and Economic Empowerment (Foreign Participation in Reserved Sectors) Regulations, 2025 on December 11, 2025. The regulations introduce new permitting requirements, ownership limits and compliance obligations for foreign nationals operating in designated sectors. 

What Changed 

• Foreign nationals must now obtain a permit to operate in a reserved sector. 
• Existing foreign‑owned businesses must submit a regularization plan within 30 days. 
• Businesses must divest 75% ownership to Zimbabwean citizens within three years, in annual 25% tranches. 
• New beneficial ownership disclosure rules require sworn declarations and supporting documentation. 
• Expanded offences and penalties apply for operating without a permit or failing to comply. 

Reserved Sectors 

Seventeen sectors are designated as reserved, including retail and wholesale trade, passenger transport, employment and estate agencies, salons and beauty services, bakeries, grain milling, advertising, local arts and crafts, artisanal mining, haulage and logistics, borehole drilling, clearing and customs, shipping and forwarding and pharmaceutical retailing. Many are exclusively reserved for Zimbabwean citizens, with limited exceptions for international brands or businesses meeting investment thresholds. 

Key Requirements 

Foreign nationals must: 

• Apply for a permit and meet minimum investment and employment thresholds (where applicable) 
• Provide a business plan demonstrating economic benefit and skills transfer 
• Maintain tax registration and a compliant local bank account 
• Submit proof of financial capacity 

Penalties 

Non‑compliance may result in: 

• Fines up to level eight 
• Three to five years’ imprisonment 
• Suspension or revocation of business licenses 
• A five‑year ban from the sector and from doing business with government entities for continued violations 

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