Zimbabwe prioritises locals over foreigners in taxi, salon and Bakery sectors
New indigenisation laws have been gazetted in Zimbabwe, prohibiting foreign participation in
Image: Itumeleng English/Independent Newspapers.
In addition to mandating that foreign-owned companies operating in specific industries give up a controlling 75% stake to locals within three years, Zimbabwe has officially reserved 14 economic sectors solely for its citizens.
The measures are contained in Statutory Instrument 215 of 2025, titled Indigenisation and Economic Empowerment (Foreign Participation in Reserved Sectors) Regulations, 2025, which requires foreign investors to offload a minimum of 25% equity annually to Zimbabweans, ensuring a phased but accelerated localisation of ownership and control.
According to the state broadcaster, the Zimbabwe Broadcasting Corporation (ZBC), the newly gazetted law ring-fences everyday sectors for local investors, including passenger transport services such as taxis and buses, barber shops, hairdressing and beauty salons, bakeries, employment agencies, advertising agencies, tobacco grading and packaging, artisanal mining, borehole drilling, and pharmaceutical retailing.
ZBC reported that estate agencies, clearing and customs services, shipping and freight forwarding, and haulage and logistics are also affected, with foreign participation permitted only under strict conditions or through recognised international brands and franchises.
State-owned daily The Herald reported that foreign-owned companies operating in reserved sectors have been given three years to comply, with non-compliant businesses required to submit regularisation plans within 30 days of the regulations being gazetted.
The paper said affected firms must divest a minimum of 25% shareholding each year until locals hold a controlling 75% stake.
The Herald further reported that the regulations criminalise attempts to circumvent the law, including the use of fronting arrangements, and empower authorities to suspend or cancel licences of businesses that fail to regularise their ownership structures.
Foreign participation will only be allowed in certain capital-intensive sectors if strict investment and employment thresholds are met, including retail and wholesale trade, grain milling, haulage and logistics, shipping and forwarding, according to the regulations cited by The Herald.
The government says the policy is intended to protect low-barrier industries from foreign dominance while broadening local participation in the economy.
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