Zimbabwe has introduced new indigenisation rules requiring foreign-owned businesses in selected sectors to cede majority ownership to local citizens within three years, a move the government says is aimed at empowering ordinary Zimbabweans.
Under the new regulations, which take effect in December 2025, affected businesses must transfer at least 75% ownership to Zimbabweans by 2028 or face closure or exit from the country. The policy primarily targets small, everyday enterprises such as hair salons, bakeries, transport services, retail shops and artisanal mining operations, which are now reserved exclusively for local ownership.
Authorities say the reforms are designed to broaden economic participation and ensure that grassroots sectors directly benefit Zimbabwean citizens. Officials argue that foreign dominance in these areas has limited opportunities for locals, particularly in urban and peri-urban economies.
Large foreign investors, however, are exempted if they meet specific thresholds, including committing substantial capital and employing more than 100 Zimbabweans. Strategic sectors such as banking, telecommunications and large-scale mining remain open to foreign participation under existing investment frameworks.
The policy has drawn mixed reactions. Supporters view it as a long-overdue step to strengthen local enterprise and wealth creation. Critics warn it could undermine investor confidence, disrupt supply chains and prompt capital flight, especially if implementation is perceived as abrupt or punitive.
As the transition period begins, businesses operating in affected sectors are expected to restructure ownership or adjust operations to comply with the new rules, setting the stage for a significant shift in Zimbabwe’s small-business landscape.
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