Foreign nationals operating in locally reserved sectors who fail to submit compliance plans face being forced to shut down as the extended deadline approaches.
The January 31 deadline, effectively Friday, January 30, triggered by Statutory Instrument (SI) 215 of 2025, is now imminent, creating a wave of uncertainty and a last-minute attempt to comply by some operators.
Visits by Zim Now to the Ministry of Industry and Commerce's compliance unit in Harare on Tuesday revealed anxious foreign business owners and representatives submitting regularization plans, with some being turned away for lack of full details.
General inquiries by this reporter at the compliance unit offices revealed that Friday, 30 January, will be the last day for submissions.
“After that we will issue names of companies that have submitted their plans, and the compliance unit will go around closing down businesses that have not complied,” an officer told this reporter.
The official said the ministry will issue stamped acknowledgement of exemption applications over the next few days, and then an annually renewable exemption certificate will follow in several weeks.
Ministry officials will make physical site visits before exemption certificates are issued, and any applicant found guilty of making false statements will be prosecuted. According to SI 215 of 2025, any such persons face jail terms of between three and five years.
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Official Zim Now queries sent several days ago regarding the level of compliance, the enforcement strategy, or the possibility of a deadline extension sent to ministry officials, including Deputy Director Coline Dzavakwa and the ministry spokesperson, have not been responded to.
Several legal practitioners who spoke to Zim Now on condition of anonymity said that S.I. 215 of 2025 is a legal quagmire, and affected business owners have the possibility of getting some sections declared null and void.
"While the state has clear policy objectives, SI 215 introduces significant legal uncertainty. Its core compliance mechanisms are undefined, and its drastic new thresholds rest on untested interpretations of the parent act, creating a high risk of arbitrary enforcement and legal challenge,” said one legal practitioner who declined to be named, as they have been retained by a client to look at the possibility of a suit against the government.
The sectors reserved for Zimbabwean citizens include barber shops and hair salons, bakeries, small-scale grain milling, retail pharmacies, passenger transport (taxis, buses), real estate agencies & employment agencies, advertising agencies, and customs clearing services.
Foreign-owned businesses already operating in these sectors must submit a plan to sell a minimum of 75% of their equity to Zimbabwean citizens within three years. The divestment must happen in stages, with at least 25% sold each year. Another option is to shut down by the end of the three-year period.
For sectors where foreign owners can be exempted from partnering with locals, the government has set astronomically high barriers with minimum investment thresholds between US$10 million and US$25 million.
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