Zimbabwe Announces Policy to *Encourage* Foreign Investment

[Anbessa Gedai]

Some African countries require 51% local ownership . . . Zim' now sez 75%
President Emmerson Dambudzo Mnangagwa of Zimbabwe during a previous interaction with President Cyril Ramaphosa.
Image: Katlholo Maifadi/ DIRCO


The directive follows the gazetting of Statutory Instrument 215 of 2025, which was published in an Extraordinary Government Gazette on December 11.


The regulations, formally titled Indigenisation and Economic Empowerment (Foreign Participation in Reserved Sectors) Regulations, 2025, strengthen the government’s policy of reserving certain areas of the economy for Zimbabwean citizens and limiting foreign participation.

According to The Herald, the new rules require foreign-owned businesses operating in these sectors to outline how they will comply with the indigenisation framework, including ownership and participation requirements.

The move is part of broader efforts by the Government of Zimbabwe to promote local ownership and economic empowerment, particularly in industries deemed accessible to indigenous entrepreneurs.

In December, IOL reported that Zimbabwe had formally reserved 14 economic sectors exclusively for its citizens, while ordering foreign-owned businesses operating in designated industries to surrender a controlling 75% stake to locals within three years.

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.

https://www.msn.com/en-xl/africa/zi...1&cvid=5314296c01434479ea1d142edfc20509&ei=12

 

[Pheroze]

This will make investment by the Chinese government difficult. I wonder if there are ad hoc carve outs, lol

 

[spike.t]

There has been talk in a few countries of "reserving" certain business types for locals....including some of the ones listed in the first part below....ie beauty/hairdressing...bakery...small shop type places....but thats about it...the transport...logistics etc ones are a different kettle of fish.....

 

[RLD]

It appears to be limited to 14 specific sectors (as noted above), none of which appear to be a big deal to the larger players in international investing.

 

[Anbessa Gedai]

If my interpretation of the article is correct . . the announcement covers at least two subjects . .

/1/ Any percentage of foreign ownership in the 14 "small business sectors" listed is forbidden.

This of course is of zero significance to foreign investors.

/2/ Foreign ownership in the business sectors that are not specifically listed is now restricted to 25%.

Needless to say, this could be very significant to potential foreign investors. By foreign investors . . . the "big picture" international corporations that have the capital, expertise, etc., to bring positive change, improve infrastructure, move the economy closer to a solid footing, etc. etc.
"Reading between the lines", one might speculate that having only 25% ownership would inhibit any influence by a foreign owner to combat graft, mismanagement, government interference, etc., etc.
So the status quo . . . you know . .

 

[Ontario Hunter]

Looks like a lot of window-dressing racist bullshit. Same old story. This "Indigestion" ( ) will fix nothing. Trying to blame foreign ownership for Zimbabwe's economic woes is laughable. I'm sure a lot of money is being drained from Zim by foreign hairdressers. Har, har.

 

[RLD]

If my interpretation of the article is correct . . the announcement covers at least two subjects . .

/1/ Any percentage of foreign ownership in the 14 "small business sectors" listed is forbidden.

This of course is of zero significance to foreign investors.

/2/ Foreign ownership in the business sectors that are not specifically listed is now restricted to 25%.

Needless to say, this could be very significant to potential foreign investors. By foreign investors . . . the "big picture" international corporations that have the capital, expertise, etc., to bring positive change, improve infrastructure, move the economy closer to a solid footing, etc. etc.
"Reading between the lines", one might speculate that having only 25% ownership would inhibit any influence by a foreign owner to combat graft, mismanagement, government interference, etc., etc.
So the status quo . . . you know . .

I don't think you are reading that correctly. However I will find out on Saturday when I see some friends who have interests in Zimb and let you know what they tell me.

 

[steve white]

Well, look on the bright side, incompetence and unattractive business practices keep everything more primitive, and primitive is just what some folks want in a hunting destination. thank God for the tsetse flys as well.

It would be comical if not so sad.

 

[Shakka]

I wouldn't "invest" LOL more than $3.99 in Zimbabwe

 

[steve white]

I will invest in a hunt in a CAMPFIRE area any day--the money stay local and the central gov gets practically nothing. Meat goes to the community and everybody is happy and invested in keeping game protected.
Otherwise, yeah, I'm in for $4.99