Business Correspondent
The Zimbabwean Government has threatened to suspend or revoke the operating licences of foreign-owned businesses that have failed to comply with legislation reserving 17 sectors of the economy for Zimbabwean citizens.
The warning follows compliance inspections covering more than 3,000 companies across the country’s 10 provinces, with Cabinet expressing concern that the majority of foreign-owned entities operating in reserved sectors have yet to regularise their operations.
In its 34th Post-Cabinet Press Briefing on Tuesday, October 20, 2026, the Government said it would intensify enforcement of the reserved-sector regulations, with the Ministry of Industry and Commerce expected to take action against businesses found operating in violation of the law.
Cabinet said that despite nationwide awareness campaigns and the issuance of notices to non-compliant businesses, foreign operators continued to maintain a significant presence in sectors reserved for Zimbabweans, including retail and brick moulding.
“The Ministry of Industry and Commerce will suspend or revoke the operating licences of all non-compliant businesses operating in the reserved sectors as per regulations,” Industry and Commerce Minister Nqobizitha Mangaliso Ndlovu said.
The measures are being implemented under the economic empowerment framework, which seeks to strengthen the participation of Zimbabwean citizens in designated areas of economic activity.
According to Cabinet, the Government gazetted Statutory Instrument 215 of 2025 in December 2025, reserving 17 economic sectors for Zimbabwean citizens.
Of these, 13 are classified as exclusive reserve sectors, including borehole drilling, clearing and customs, tobacco grading, estate agencies and artisanal mining.
Foreign participation may be permitted in certain other reserved sectors, including retail and wholesale trade, haulage and logistics, grain milling, and shipping and forwarding, subject to exemptions provided for under the regulations.
The latest compliance exercise has resulted in 693 formal applications for compliance being received from businesses operating in reserved sectors.
A further 269 foreign operators applied for regularisation under arrangements requiring the transfer of 75% equity to Zimbabwean citizens.
Cabinet also reported that 144 entities had applied for confirmation of their local status through exemption or verification procedures.
Meanwhile, 63 entities, representing 13.2% of foreign companies covered by the relevant process, qualified for statutory exemptions on the basis that they met prescribed investment requirements or were recognised international brands.
The figures suggest that the Government is pursuing a combination of regularisation, ownership restructuring and exemptions as it seeks to enforce the reserved-sector framework.
The planned enforcement action could have significant implications for foreign-owned enterprises operating in the affected sectors, particularly retail, wholesale trade, logistics and other activities covered by the framework.
