A Tightening Grip: Zimbabwe’s January 31 Deadline for Foreign Businesses

The Zimbabwean government has issued a firm directive to foreign nationals operating in sectors reserved for locals: submit your plans to comply with indigenisation laws by January 31, 2026. This move, reported by state media The Herald, reinforces a controversial policy requiring foreign-owned businesses to cede majority ownership and control to Zimbabwean citizens.

The deadline is based on Statutory Instrument 215 of 2025, gazetted in December, which formalises the state’s drive to ring-fence over a dozen “everyday” economic sectors exclusively for indigenous entrepreneurs. Foreign participation in these areas will now be heavily restricted or require a phased divestment.

Which Sectors Are Reserved?

The list of reserved sectors is extensive and targets predominantly service-oriented and trade-based industries. They include:

• Transport: Passenger services like taxis and buses.

• Retail & Services: Barber shops, beauty salons, bakeries, employment agencies, advertising agencies, and pharmaceutical retailing.

• Logistics & Trade: Estate agencies, clearing and customs services, shipping and freight forwarding, and haulage trucking.

• Natural Resources: Artisanal mining, borehole drilling, and tobacco grading/packaging.

For businesses already operating in these spaces, the new regulations demand a “regularisation plan” detailing how they will achieve compliance, which includes surrendering a controlling 75% stake to locals within three years through annual 25% equity divestments.

A Phased but Accelerated Localisation

The policy is not an outright immediate ban but a structured, accelerated localisation. It aims to transfer ownership and operational control to Zimbabwean citizens systematically. International brands and franchises may still participate under strict, unspecified conditions, but the barrier to entry for foreign capital in these sectors is now significantly higher.

This move is the latest step in Zimbabwe’s long-standing Indigenisation and Economic Empowerment drive, which seeks to redress historical economic imbalances but has often been criticised for deterring foreign investment and creating uncertainty. For the hundreds of foreign-owned SMEs in these sectors, the next two weeks are critical to charting a future that either aligns with the new ownership rules or faces an exit from the market. The January 31 deadline is the starting gun for a fundamental reshuffle of who owns and profits from the nation’s everyday economy.