Zimbabwe Tightens Local Ownership Rules in Key Business Sectors

February 1, 2025
mthuli ncube
mthuli ncube

Zimbabwe’s government announces stricter enforcement of laws reserving vital economic sectors for citizens, signaling a shift in foreign investment policy.

Finance Minister Mthuli Ncube declared Zimbabwe will strengthen enforcement of the Indigenisation and Economic Empowerment Act, restricting certain business sectors to citizens only. The announcement came after an emergency economic meeting led by President Emmerson Mnangagwa, who interrupted his vacation to address national financial concerns.

The protected sectors include retail, transport, hairdressing, estate agencies, and artisanal mining. The restrictions extend to grain milling, bakeries, and tobacco processing industries, marking a significant shift in the country’s economic policy.

President Mnangagwa convened the meeting with Vice Presidents and economic ministers to tackle ongoing financial challenges. The discussions centered on formalizing informal businesses, improving tax collection, and maintaining foreign direct investment despite the new restrictions.

The government’s enforcement of local ownership rules represents a delicate balance between attracting international investment and protecting domestic business interests. The policy aims to increase Zimbabwean participation in key economic sectors while maintaining the country’s appeal to foreign investors in unrestricted industries.

The strengthened implementation of the Act marks a departure from previous approaches that allowed more flexibility for foreign investment in these sectors. This shift emphasizes the government’s priority of empowering local entrepreneurs while managing international business relationships.