In Zimbabwe, the investment landscape for foreign nationals is governed by the Indigenisation and Economic Empowerment Act [Chapter 14:33], recently updated by Statutory Instrument 215 of 2025.
While the “Zimbabwe is Open for Business” mantra remains the overarching policy, S.I. 215 of 2025 draws a clear line between sectors that are exclusively for locals and those where foreigners can participate if they meet high capital and employment thresholds.
1. Sectors Exclusively Reserved for Zimbabweans
Foreigners are generally prohibited from owning or starting businesses in these sectors, which the government considers to be low-capital entry points for local citizens.
-
Beauty & Grooming: Barber shops, hair dressing, and beauty salons.
-
Retail & Services: Bakeries, valet services, and pharmaceutical retailing.
-
Natural Resources: Artisanal mining and borehole drilling.
-
Logistics & Trade: Tobacco grading and packaging, advertising agencies, employment agencies, and customs clearing (except for international brands).
-
Arts: Marketing and distribution of local arts and crafts.
2. Sectors with High Entry Thresholds for Foreigners
Foreigners can invest in these sectors, but only if they operate at a large scale. These “reserved” sectors are not closed, but they require significant capital to ensure they do not compete with local small-to-medium enterprises (SMEs).
| Sector | Minimum Investment (US$) | Minimum Full-time Employees |
| Grain Milling | $25,000,000 | 50 |
| Retail and Wholesale Trade | $20,000,000 | 200 |
| Haulage and Logistics | $10,000,000 | 100 |
| Shipping and Forwarding | $1,000,000 | 20 |
Note: For sectors like Passenger Transportation (buses, taxis) and Estate Agencies, participation is reserved for Zimbabweans unless you are operating under a recognized international brand.
3. Investment Requirements for Foreigners
If you are a foreign national looking to invest in a reserved sector (by meeting the thresholds above), you must:
-
Register a Local Entity: Be an individual or company incorporated in Zimbabwe.
-
Apply for a Permit: Submit an application to the Minister through the Empowerment Unit.
-
Submit a Business Plan: Your plan must prove how you will create sustainable employment, transfer technology/skills, and create local value chains.
-
Financial Proof: Provide bank statements or guarantees from reputable financial institutions.
-
Compliance: Be registered with ZIMRA (Tax) and maintain a bank account under the Bank Use Promotion Act.
4. The 75% Local Ownership Rule
For foreign businesses already operating in these reserved sectors as of December 2025, S.I. 215 introduces a regularisation period.
-
Submission: You had 30 days from December 11, 2025 (deadline roughly January 10, 2026) to submit a regularisation plan.
-
Divestment: You must divest at least 75% of your equity to Zimbabwean citizens within three years. This must be done in annual tranches of at least 25% per year.
-
Penalties: Operating without a permit or failing to regularise can lead to fines (Level 8) or imprisonment for up to 5 years.
Where You CAN Invest (100% Ownership)
Outside of these 17 reserved sub-sectors, Zimbabwe allows 100% foreign ownership in high-growth areas like Large-scale Mining (Gold, Lithium, Platinum), Energy (Solar and Hydro), Manufacturing, and Tourism. These are facilitated through the Zimbabwe Investment and Development Agency (ZIDA).
- Would you like our service with ZIDA investment license application?
- Get in touch for our services
