Zimbabwe bans foreigners from certain businesses and reserves sectors for locals: All you need to know

As we close the year, 2025 has been a year filled with a lot happening in all aspects of our lives from social to businesses. Foreign investment has ramped up notably China investing more in the country (Is it a good thing to have such dependency?) , well a topic for another day. As reported in the media china alone has over 500 new players in 2025 alone further highlighting a trend that has been on the rise and in some instances, unsettling. Well it seems government is taking a turn albeit not in all sectors. Government has banned foreigners from owning businesses in certain sectors giving those who already do to sell off their business, let's take a closer look at what sectors are eing affected by this new laws and what it means for business owners and potential owners.

The foreign investment campaign has been in full swing ever since the second republic has been in power but it seems for the first time the government has taken a completely different route at least in other sectors. Zimbabwe has introduced new regulations restricting the participation of foreign nationals in seventeen economic sectors and sub-sectors that are reserved for local citizens. 

The new law

Under Statutory Instrument 215 of 2025, foreigners are now barred from operating in sectors such as artisanal mining, bakeries, advertising agencies, salons, employment agencies, and the local arts and crafts industry. So under this new law foreigners can no longer start businesses in the aforementioned sectors but if the already had business in these sectors they have been given 3 years to sell off their shares or companies. There is still a lot that needs clarification as this has a lot of grey areas which need careful examining.

The Exceptions

In certain sectors, including retail, wholesale, trucking, grain milling, and shipping, foreign participation is permitted only for large investors. So here are the thresholds for some sector for one to be considered an exception:

• In the haulage industry, the minimum investment is US$10 million with 100 employees.
• In retail and wholesale, a foreign investor must commit at least US$20 million and employ 200 people. 
• In grain milling, a foreign investor must employ at least 50 people and invest US$25 million. 
• In shipping and forwarding, the threshold is US$1 million and 20 employees.

The exclusive sectors for Zimbabwean Citizens

There are sectors that have been exclusively reserved for Zimbabweans on this new law. These sectors include employment agencies, barber shops, hairdressing and beauty salons, valet services, bakeries, tobacco grading and packaging, advertising agencies, local arts and crafts marketing and distribution, artisanal mining, borehole drilling, and pharmaceutical retail.

The way forward

The transport, estate agencies, and clearing and customs sectors remain exclusively for Zimbabweans, except for international brands. Existing foreign-run businesses in the reserved or the newly affcted sectors have three years to sell 75% of their shares to Zimbabwean citizens, with requirement being, sell at least 25% each year because if they were to sell such a large number of shares the businesses might crush plus the other reason will be allowing owners to get fair prices for their shares without preessure. Foreign control in other parts of the economy, including large-scale mining, banking, and other industries, will not be affected.

While the idea is beneficial to locals to some extent, it remains to be seen if it is a positive idea since future foreign investors might be skeptical to invest in the country because of the ever changing policies.

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