Foreign Firms Given 3 Months to Comply with Zimbabwe's Reserved Sectors Law

Foreign-owned businesses operating in sectors reserved for Zimbabweans have been given a three-month window to regularize their operations or risk being barred from operating. The government is enforcing new empowerment regulations gazetted last month, aimed at expanding local participation in economic sectors with low entry barriers .

Industry and Commerce Minister Mangaliso Ndlovu said the move follows the gazetting of Statutory Instrument (SI) 215 of 2025, which sets clear thresholds and compliance requirements for exemptions allowing foreign participation in reserved sectors. The three-month compliance window runs from January to March.  Follow & Share Our WhatsApp Channel

"By the end of March, all applicants should have received a response," Minister Ndlovu said. "Those that qualify will be issued either a compliance certificate or an exemption, depending on their circumstances. Entities found to be operating illegally and therefore barred from continuing in the reserved sectors will also be formally notified."

The reserved sectors law has existed for years, but enforcement was previously weakened by the absence of clearly defined thresholds. Minister Ndlovu emphasized that the government is determined to protect local entrepreneurs from being crowded out of sectors with low capital requirements .

Despite the enforcement drive, Minister Ndlovu emphasized that Zimbabwe remains open to foreign direct investment. "Foreign direct investment has been a hallmark of the Second Republic, and we have seen phenomenal growth in investment from multiple nationalities," he said. The government expects the process to be orderly and non-disruptive, with an awareness campaign being rolled out this month .