Foreign Business Owners Given Three Years To Sell Shares In Zimbabwe

Foreign business owners across Zimbabwe have been handed a strict three-year deadline to sell the majority of their stakes to local citizens. This mandate comes directly from the government’s new indigenisation regulations, which have fundamentally redrawn the rules of economic participation. The law, formally titled the Indigenisation and Economic Empowerment (Foreign Participation in Reserved Sectors) Regulations, 2025, took effect on 12 December 2025 and has sent shockwaves through the small and medium enterprise sector.

The legal instrument, known as Statutory Instrument 215 of 2025, establishes a compulsory divestment schedule. According to the government notice, existing foreign-run businesses operating in sectors now reserved for locals must sell 75% of their equity to Zimbabwean citizens.

Which Businesses Are Affected?

The divestment order applies to a wide array of everyday businesses that are now exclusively reserved for Zimbabwean nationals under the new regulations. The official list includes numerous common enterprises:

1. Barber shops, hairdressing, and beauty salons.

2. Bakeries and grain milling operations below a major investment threshold.

3. Employment and estate agencies.

4. Advertising agencies.

5. The marketing and distribution of local arts and crafts.

6. Artisanal mining and borehole drilling.

7. Passenger bus services, taxis, and car hire firms.

8. Valet services and pharmaceutical retailing.

For foreign owners in these fields, the choice is now stark: find local partners to buy a controlling stake or exit the market entirely by December 2028.

High-Cost Exceptions For Major Investors

While the door is closing for many, the Indigenisation and Economic Empowerment Regulations create a narrow pathway for substantial foreign capital in a few specific sectors. However, the financial bar has been set extraordinarily high.

To participate in retail and wholesale trade, a foreign entity must now invest a minimum of US$20 million (approx. R380 million) and employ at least 200 Zimbabweans. Similarly, entering the haulage and logistics industry requires at least US$10 million (approx. R190 million) in investment and 100 employees.

The government’s position is that sectors such as large-scale mining and banking remain open to foreign control under the broader Indigenisation Act. At the same time, the core of the local economy is being firmly ring-fenced for citizen empowerment. The coming three years will test the practical implementation of this ambitious policy.