Zimbabwe’s New Law Bans Foreigners From Reserved Sectors For Locals [Full List]

Zimbabwe Passes Law Banning Foreigners From Businesses Reserved For Locals

Zimbabwe’s government has enacted a major new economic policy that bars foreign nationals from operating in a wide range of business sectors. The regulations, which take effect immediately, reserve over a dozen industries exclusively for Zimbabwean citizens and impose significant financial barriers to foreign participation in others. The move is set to reshape the country’s business landscape, impacting everything from local bakeries to transport networks.

According to a government notice, the Indigenisation and Economic Empowerment (Foreign Participation in Reserved Sectors) Regulations, 2025, spell out clear restrictions.

Sectors Now Exclusively For Zimbabweans

The legislation provides a definitive list of business sectors in which foreign ownership is now completely prohibited. According to the official government document Thresholds for Reserved Sectors, these sectors include:

Transportation services for passenger buses, taxis, and car hire (except for international brands).
Barber shops, hairdressing, and beauty salons.
Employment agencies.
Estate agencies (except for international brands).
Valet services.
Bakeries.
Tobacco grading, processing, and packaging.
Advertising agencies.
The marketing and distribution of local arts and crafts.
Artisanal mining.
Borehole drilling.
Clearing and customs agencies (except for international brands).
Pharmaceutical retailing.

Massive Investment Hurdles For Other Sectors

While the sectors listed above are now completely off-limits, others allow foreign participation only if investors can meet exceptionally high thresholds.

For the retail and wholesale trade, a foreign investor must now invest a minimum of US$20 million (approximately R380 million) and employ at least 200 full-time staff. Similarly, entering the haulage and logistics industry requires an investment of at least US$10 million (approx. R190 million) and 100 employees.

The government’s stated goal is to reserve smaller-scale enterprises for locals while permitting only large-scale foreign investment in certain areas.

Grace Period For Existing Businesses

The new law does provide a transition period for foreign-owned businesses already operating in the newly reserved sectors. These existing enterprises have been given three years to comply with the ownership rules. They must sell 75% of their shares to Zimbabwean citizens, divesting 25% each year.

This clause aims to prevent immediate disruption while enforcing the long-term policy shift. The regulations clarify that foreign control in major parts of the economy, such as large-scale mining and banking, remains unaffected for now.

The full implementation of these rules will be closely watched by both the local business community and international observers, marking a significant step in Zimbabwe’s ongoing indigenisation drive.