Indigenisation and Economic Empowerment (Foreign Participation in Reserved Sectors) Regulations, 2025
Foreign-owned businesses in reserved sectors — salons, bakeries, employment and advertising agencies, artisanal mining, tobacco grading — have 30 days to file a regularisation plan and three years to sell 75% of their equity to Zimbabweans.
Made by the Minister of Industry and Commerce under section 21 of the Indigenisation and Economic Empowerment Act, these regulations govern how foreign nationals — anyone who is not a Zimbabwean citizen — may participate in reserved sectors of the economy.
The Schedule sets the position sector by sector. Reserved exclusively for Zimbabweans are barber shops, hairdressing and beauty salons, employment agencies, valet services, bakeries, tobacco grading and packaging, advertising agencies, local arts and craft marketing and distribution, and artisanal mining. Passenger transport (buses, taxis, car hire) and estate agencies are exclusive except for international brands. Two sectors admit foreign participation above a threshold: retail and wholesale trade requires at least 200 full-time paid employees and US$20 million of investment, and grain milling at least 50 employees and US$25 million.
A foreign national must hold a permit or exemption certificate. Applications go to the Minister with a business plan and proof of financial resources, are considered within 60 days, and may be approved with conditions — failure to comply with a condition deems the application rejected. The Minister may revoke a permit for breach of the empowerment plan or fraud in the application.
Beneficial ownership is policed directly. If a Zimbabwean-owned business in a reserved sector changes hands to a foreign national, the change must be notified within seven days and a permit applied for. The Unit may require a registered owner to swear that they are the sole beneficial owner and, where they are not, to name the true owners. Refusing to swear, or swearing falsely, is an offence carrying a fine up to level eight or three to five years' imprisonment.
Existing foreign businesses in reserved sectors have 30 days from gazetting to submit a regularisation plan, and three years to divest at least 75 per cent of their equity to Zimbabwean citizens in annual tranches of at least 25 per cent, leaving them with no more than 25 per cent at the end. Failure to regularise means suspension or revocation of business licences.
Operating in a reserved sector without a permit — or helping someone else to — carries a fine up to level eight or three to five years' imprisonment, and a repeat offender is barred from the sector and from doing business with any Government entity for five years.
What changed
- Nine sectors reserved exclusively for Zimbabweans, including salons, bakeries, employment and advertising agencies and artisanal mining
- Retail and wholesale trade open to foreigners only above 200 employees and US$20 million investment; grain milling above 50 employees and US$25 million
- Existing foreign businesses have 30 days to submit a regularisation plan
- 75% of equity must be divested to Zimbabweans within three years, in tranches of at least 25% a year
- Sworn beneficial ownership declarations may be demanded; a false declaration or unlicensed operation carries level 8 fines or three to five years' imprisonment
Who this affects
- Foreign nationals owning salons, bakeries, agencies, mills or shops in Zimbabwe
- Zimbabwean nominees fronting for foreign owners
- Retail, wholesale and grain milling investors
- Business licensing authorities and the indigenisation Unit
Plain-language summary — not legal advice. Always read the full instrument.