Government Reserves Key Business Sectors For Locals

17 December 2025

By Colletta Bell

The Government has moved to strengthen local economic empowerment by gazetting Statutory Instrument 215 of 2025, which reserves several key sectors of the economy for exclusive local ownership.

Industries affected include passenger transport, hair salons, grain milling, borehole drilling, estate agencies, bakeries, tobacco packaging, pharmaceuticals and haulage services.

Foreign investors currently operating in these sectors have been given 30 days to submit divestment plans. Under the new rules, they are required to cede at least 75 percent ownership to locals over three years, transferring a minimum of 25 percent each year.

The law also targets locals who act as fronts for foreign businesses, with penalties introduced to block attempts to bypass the regulations.

However, foreign operators may apply for special permits through the Ministry of Industry and Commerce under exceptional circumstances. The move is aimed at boosting local participation and ownership in Zimbabwe’s economy.

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