Government has gazetted new regulations reserving specific sectors of the economy for investment by local citizens, tightening conditions on foreign participation as part of its indigenisation and economic empowerment drive.
According to the Government Gazette published yesterday, the Minister of Industry and Commerce, in terms of section 21 of the Indigenisation and Empowerment Act [Chapter 14:33], has promulgated new regulations titled the Indigenisation and Economic Empowerment (Foreign Participation in Reserved Sectors) Regulations, 2025.
The Gazette outlines the arrangement of sections covered under the new law, namely “Title, Interpretation, Application, Qualified foreign nationals, Beneficial Ownership, Regularisation period, Offences and penalties,” as well as a Schedule on “Thresholds for reserved sectors.”
Under the Title section, the regulations state that “these regulations may be cited as the Indigenisation and Economic Empowerment (Foreign Participation in Reserved Sectors) Regulations, 2025.”
The Interpretation section provides definitions of key terms used in the regulations to guide implementation and enforcement. Advertising agencies are defined as “businesses engaged in creating, planning, and managing advertising campaigns or promotional materials on behalf of clients, across print, broadcast, outdoor, or digital media.”
Bakeries are defined as “premises or businesses engaged in the production and sale of bread, cakes, pastries, and other baked goods for public consumption,” placing commercial baking operations within the scope of the reserved sectors framework.
The regulations also introduce a definition of beneficial ownership. A “beneficial owner,” according to the Gazette, “means a person who enjoys the benefits of ownership though the business is registered under another name.”
The Gazette further provides for application of the regulations, qualified foreign nationals, and a regularisation period, while also outlining offences and penalties related to non-compliance. A schedule attached to the regulations sets out thresholds applicable to reserved sectors.
The regulations are issued as subsidiary legislation under the Indigenisation and Empowerment Act, which governs foreign participation and ownership structures in designated sectors of the economy.
The Government Gazette confirms that the regulations are made in accordance with section 21 of the Act, which empowers the Minister to prescribe conditions relating to foreign participation in reserved sectors.
The regulations take effect upon publication in the Government Gazette.
