Foreign Nationals Banned From Zimbabwe’s Artisanal Mining Sector

The Government of Zimbabwe has formally banned all foreign nationals from participating in the country’s artisanal mining sector. The sweeping new regulations, which came into immediate effect this month, designate small-scale mineral exploitation as the exclusive preserve of Zimbabwean citizens.

This dramatic policy shift is part of a broader economic indigenisation drive that reserves 17 sectors for locals and requires existing foreign-owned businesses to sell majority stakes within 3 years.

Three-Year Ultimatum For Foreign-Owned Businesses

According to the regulations published in the Government Gazette, the ban on foreign participation is absolute for artisanal mining.

The Indigenisation and Economic Empowerment (Foreign Participation in Reserved Sectors) Regulations, 2025, or Statutory Instrument 215 of 2025, states that foreign nationals are “prohibited from owning, operating, financing, or exercising beneficial control over artisanal mining activities in the country”

. Authorities have been empowered with new tools to investigate and expose foreign nationals suspected of operating through local proxies

The legal instrument establishes a compulsory divestment schedule. Existing foreign-run businesses operating in sectors now reserved for locals must sell 75% of their equity to Zimbabwean citizens

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For the many foreign-owned businesses in other reserved sectors—including bakeries, salons, advertising agencies, and local arts and crafts—the government has issued a three-year ultimatum.

These businesses must sell 75% of their shares to Zimbabwean nationals by December 2028, divesting 25% each year, or face closure. The move has sent shockwaves through the small and medium enterprise sector.

High-Cost Exceptions For Major Foreign Investors

While the door has been firmly shut for small-scale foreign operators, the new regulations create a narrow, high-cost pathway for substantial foreign capital in a few specific industries.

The financial and employment thresholds for entry are exceptionally high, signalling a government priority to attract only large-scale, job-creating investments.

To participate in retail and wholesale trade, a foreign entity must now invest a minimum of US$20 million (approx. R336 million) and employ at least 200 Zimbabweans. Similarly, entering the haulage and logistics industry requires at least US$10 million (approx. R168 million) in investment and 100 employees.

These figures are based on an exchange rate of approximately 16.8 ZAR per 1 USD, reflecting the currency value as of mid-December 2025.

Sectors like large-scale mining and banking remain fully open to foreign investment and control under the broader Indigenisation Act. The government’s stated aim is to protect local livelihoods, curb illicit financial flows, and ensure the benefits of community-based mining, which employs hundreds of thousands, remain within the country

Market Reactions And Regional Economic Context

The policy announcement has sparked intense debate online. On social media, some users questioned the practical impact, with one commentator asking, “And who are they selling to?” regarding the required sale of business shares.

Others pointed out the potential for diplomatic friction, noting that many Zimbabweans operate small businesses in other Southern African nations.

Zimbabwe’s new regulations represent a decisive turn toward economic localisation, with the coming three years set to test the implementation of this ambitious empowerment policy.