Government is moving to suspend or revoke the operating licences of foreign-owned businesses that have failed to comply with legislation reserving 17 economic sectors for Zimbabwean citizens, following inspections of more than 3 000 companies across the country’s 10 provinces.
Briefing the media, during yesterday’s Post-Cabinet Press Briefing, Minister of Information, Publicity and Broadcasting Services, Dr Zhemu Soda, said Cabinet had received an update on the implementation of reserved sector legislation under the economic empowerment framework.
“The nation is informed that Government gazetted Statutory Instrument number 215 of 2025 in December 2025, reserving 17 sectors of the economy for Zimbabwean citizens.
13 of the sectors were exclusively reserved for locals, including borehole drilling, clearing and customs, tobacco grading, estate agencies and artisanal mining,” Dr Soda added.
Foreign participation in selected sectors, including retail and wholesale, haulage and logistics, grain milling, and shipping and forwarding, may be permitted through exemptions provided for under the legislation.
Dr Soda said compliance inspections had been completed nationwide, with authorities receiving 693 formal applications for compliance under the reserved sectors.
“269 foreign operators applied for compliance under the Regularisation Plans mandating equity transfer of 75% to Zimbabwean citizens,” he said.
However, Cabinet noted that many foreign-owned businesses had yet to regularise their operations despite public awareness campaigns and the issuance of non-compliance notices.
Dr Doda said foreign operators continued to maintain a significant presence in reserved sectors, particularly retail and brick moulding, prompting Government to move towards stricter enforcement.
“Cabinet noted that despite extensive national campaigns and issuance of non-compliance notices, the majority of foreign-owned entities have not yet regularised as required and that foreign players continue to maintain a significant footprint in reserved sectors including retail and brick moulding, hence stiffer penalties will be implemented,” he said.
He said the Ministry of Industry and Commerce would take action against businesses that remained in violation of the regulations.
“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,” Dr Soda said.
The measures are part of Government’s economic empowerment framework aimed at ensuring Zimbabwean citizens benefit from opportunities in sectors designated for local participation, while allowing eligible foreign investors to operate within the prescribed legal requirements.
