Foreigners in reserved sectors given deadline
THE Government has directed foreigners operating in reserved sectors of the economy to submit regularisation plans by January 31, following the promulgation of Statutory Instrument 215 of 2025 last month.
SI 215 of 2025, titled Indigenisation and Economic Empowerment (Foreign Participation in Reserved Sectors) Regulations, 2025, was published in an Extraordinary Government Gazette on December 11 and reinforces policy on indigenisation and the empowerment of locals.
In a statement yesterday, the Ministry of Industry and Commerce said the plans should be submitted at its provincial offices countrywide.
“The Ministry of Industry and Commerce wishes to remind all stakeholders regarding Statutory Instrument 215 of 2025 (SI 215 of 2025) on the Reserved Sector Regulations.
All foreigners operating in the reserved sectors must submit regularisation plans by the 31st of January 2026 at any Ministry of Industry and Commerce office in Harare, Bulawayo, Masvingo, Mutare, Chinhoyi, Gweru, Bindura, Marondera, Gwanda and Lupane.
“The Ministry also advises stakeholders that when submitting the regularisation plans, valid proof of payment for the Standards Development Fund (SDF) Levy is a prerequisite. SDF levies can now be paid at the Ministry of Industry and Commerce offices at Mukwati Building in Harare to facilitate ease of doing business,” reads part of the statement.
The reserved areas include barber shops and beauty salons, bakeries, employment agencies, advertising agencies, artisanal mining, valet services, borehole drilling, pharmaceutical retailing, small-scale grain milling, and the marketing and distribution of local arts and crafts. Passenger transport, real estate agencies and customs clearing services are also restricted, except for recognised international brands.
Where foreign participation is permitted, entry thresholds are deliberately high.
For instance, retail and wholesale investors must commit US$20 million and employ at least 200 full-time workers; grain milling requires US$25 million and 50 employees; haulage and logistics demand US$10 million and 100 employees.
The SI also introduced strict rules on beneficial ownership to curb the use of fronts.
Authorities may demand sworn declarations, and any person who fails or makes a false declaration faces a fine not exceeding level eight or imprisonment of three to five years.
Foreign-owned businesses already operating in reserved sectors have 30 days to submit regularisation plans and must divest 75 percent of their equity to Zimbabwean citizens within three years, in annual tranches of no less than 25 percent.
The SI specifies: “Foreign nationals operating in the reserved sector shall, within a period of three years, divest a minimum of seventy-five per centum (75 percent) of their equity to Zimbabwean citizens.
The divestment shall occur in annual tranches of no less than twenty-five per centum (25 percent) per annum,” leaving foreign investors with no more than 25 percent ownership at the end of three years.
The regulations grant significant authority to the Minister of Industry and Commerce, who may approve, reject or revoke participation permits. The SI states that the Minister “may approve and subsequently issue a permit or an exemption certificate or reject an application” and may revoke permits where investors fail to meet empowerment obligations.
Operating in a reserved sector without a permit is classified as a criminal offence, with the SI warning that offenders are liable to fines or imprisonment.
