Govt to Shut Non-compliant Foreign Businesses Operating in Reserved Sectors
THE government says it will revoke operating licences of foreign-owned businesses that have failed to comply with regulations reserving 17 economic sectors for Zimbabweans, amid concerns that foreign players continue to dominate some protected industries.
This comes at a time when foreign-owned businesses have continued operating in sectors such as retail and wholesale trade, particularly in the Harare CBD.
Speaking during a post-cabinet media briefing Tuesday, Information Minister Soda Zhemu said most foreign-owned businesses had not regularised their operations despite government campaigns and the issuance of non-compliance notices.
“The majority of foreign-owned entities have not yet regularised as required, and foreign players continue to maintain a significant footprint in reserved sectors, including retail and brick moulding; hence, stiffer penalties will be implemented.
“The Ministry of Industry and Commerce will suspend or revoke the operating licences of all non-compliant businesses operating in the reserved sectors as per regulations,” Zhemu said.
Government gazetted Statutory Instrument 215 of 2025 in December last year, reserving 17 sectors of the economy for Zimbabwean citizens.
13 of the sectors are exclusively reserved for locals, including borehole drilling, clearing and customs, tobacco grading, estate agencies and artisanal mining.
Foreign participation in some sectors, including retail and wholesale, haulage and logistics, grain milling, and shipping and forwarding, is permitted through exemptions.
Zhemu said compliance inspections covering more than 3,000 companies had been completed across the country’s 10 provinces and a very small percentage met required investment thresholds.
A total of 693 formal applications for compliance under the reserved sector regulations had been received, while 269 foreign operators had applied for regularisation plans requiring the transfer of 75% equity to Zimbabwean citizens.
Another 144 entities applied for confirmation of their local status through exemptions or the verification process.
“63 entities representing 13.2% of foreign companies qualified for statutory exemption on the basis that they met the prescribed investment or qualified as recognised international brands,” Zhemu said. *NewZW*
