Zimbabwe has introduced new rules that force foreign-owned businesses to give up most of their ownership to local citizens
By TUWThe Government of Zimbabwe has introduced new business regulations that will require foreign-owned companies in certain sectors to hand over majority ownership to Zimbabwean citizens within the next three years. The new rules, which take effect from December 2025, are aimed at increasing local participation in the economy and protecting small businesses for citizens.
Under the regulations, foreign-owned businesses operating in selected sectors must ensure that Zimbabweans own at least 75 percent of the company by 2028. Companies that fail to meet this requirement risk losing their operating licenses or being forced to close or leave the country.
The policy mainly targets small and medium-sized businesses that are part of daily economic life. These include hair salons, barber shops, bakeries, retail shops, passenger transport services, employment agencies, artisanal mining operations, and pharmaceutical retail outlets, among others. These sectors are now reserved almost entirely for local citizens.
According to the government, these industries do not require large amounts of capital and should primarily benefit Zimbabweans, especially small entrepreneurs and informal traders.
Foreign investors are not completely excluded from all areas of the economy. In some sectors such as retail, logistics, haulage, and grain milling, foreign businesses may continue to operate if they meet strict investment conditions. These include investing significant amounts of money and creating jobs for at least 100 or more Zimbabwean workers, depending on the sector.
Major industries such as banking, large-scale mining, and other capital-intensive operations remain open to foreign investment under existing laws.
Officials say the new rules are meant to empower ordinary Zimbabweans, create employment, and ensure that profits generated within the country benefit local communities. The government argues that the regulations will help strengthen local businesses and reduce foreign dominance in small commercial activities.
Concerns From the Business Community
Despite the government’s assurances, some business groups and economic analysts have expressed concern. Critics warn that forcing foreign companies to give up majority ownership may reduce investor confidence and discourage future investment. Others fear the policy could lead to job losses if businesses decide to close rather than restructure their ownership.
Affected businesses are expected to submit plans showing how they will comply with the new ownership requirements. As the deadline approaches, attention will be focused on how the government enforces the regulations and whether the policy achieves its goal of expanding economic opportunities for Zimbabwean citizens without harming investment and growth.
