Source: CZR hails Government’s reserved sectors rules – herald
Tapiwanashe Mangwiro
The Confederation of Zimbabwe Retailers (CZR) has thrown its weight behind the Government’s reserved sector policy support legislation, describing the new regulations as a timely move that will protect local businesses while still allowing meaningful foreign investment.
Statutory Instrument 215 of 2025, issued through the Ministry of Industry and Commerce, spells out sectors reserved for Zimbabwean citizens and provides specific guidelines and conditions for foreign investor participation in certain reserved areas of the economy.
Zimbabwe’s indigenisation and economic empowerment policies aimed to correct colonial-era economic imbalances by transferring ownership and control of businesses to indigenous Zimbabweans or reserving certain sectors for locals to promote wider local participation and job creation.
In a statement, CZR president Mr Denford Mutashu said the policy struck an important balance between empowering locals and attracting long-term capital into the country.
“These regulations seek to preserve specific economic spaces for Zimbabwean citizens while ensuring that foreign investment is channelled toward high-impact, capital-intensive industrialisation,” said Mr Mutashu.
Under the new regulations, 13 sectors have been set aside exclusively for Zimbabwean citizens.
These are artisanal and small-scale mining, transport services such as taxis and car hire, barber shops and beauty salons, bakeries, employment agencies, customs clearing, pharmaceutical retailing, real estate agencies, borehole drilling and the provision of arts and crafts.The policy also requires foreign-owned businesses operating in the reserved sectors to gradually reduce their shareholding. According to the regulations, foreign investors must dispose of at least 75 percent of their shares to Zimbabwean citizens over three years, at a minimum of 25 percent per year.
CZR said this structured approach provided clarity and avoided disruption in the market.
“The phased disposal requirement brings certainty and predictability. It allows businesses to adjust in an orderly way while ensuring that locals ultimately take control of sectors meant for citizen participation,” Mr Mutashu said.The organisation also welcomed the introduction of minimum investment and employment thresholds for foreign investors seeking to operate in selected sectors.
Under the new framework, foreign players in retail and wholesale trade must employ at least 200 people and invest a minimum of US$20 million. In grain milling, the threshold is US$25 million and 50 employees, while haulage and logistics require US$10 million and 100 workers.
According to CZR, these thresholds are designed to ensure that foreign participation brings real economic value.
“These measures are not meant to shut out investors, but to make sure that when they come in, they contribute meaningfully through capital injection, job creation and skills transfer,” said Mr Mutashu.CZR also applauded the directive requiring manufacturers to distribute goods through locally owned wholesale and retail channels. The lobby group said the move would strengthen indigenous businesses and promote fair competition within the market.
“This provision directly empowers local traders and ensures that value chains benefit Zimbabwean businesses instead of being dominated by foreign interests,” Mr Mutashu noted.
He added that the reserved sector regulations reflected the Government’s broader push towards inclusive growth, industrialisation and citizen empowerment.
“As retailers, we fully support this policy direction. It protects local enterprise, promotes fair competition and lays a strong foundation for sustainable economic growth,” he said.
CZR said it remained ready to work with the Government and other stakeholders to ensure smooth implementation of the regulations and to maximise benefits for the economy and ordinary Zimbabweans.
The post CZR hails Government’s reserved sectors rules appeared first on Zimbabwe Situation.