ZIMBABWE ORDERS FOREIGN BUSINESSES TO CEDE 75% OWNERSHIP TO LOCALS

The Government of Zimbabwe has enacted a new law requiring foreign-owned businesses to hand over 75 percent ownership to local Zimbabweans within three years or cease operations in the country.

Announcing the measure, President Emmerson Dambudzo Mnangagwa said the policy will take effect from 2026 to 2028 and is aimed at empowering indigenous citizens.

“From 2026 to 2028, affected businesses must hand over 75% control or shut down or leave the country,” President Mnangagwa stated.

The law primarily targets small-scale and everyday businesses such as salons, bakeries, transport services, retail shops and small-scale mining operations, which will now be reserved exclusively for locals.

However, the government indicated that large foreign companies may continue operating if they meet specific investment thresholds and employ more than 100 Zimbabweans. Strategic sectors such as banking and large-scale mining will remain open to foreign participation.

Authorities say the policy is designed to promote economic empowerment and broaden local participation in business ownership.

“This law is meant to empower ordinary Zimbabweans and ensure greater participation in the economy,” the President said.

While government maintains the move will strengthen local enterprise, critics warn that the measure could discourage foreign investment and affect economic growth if not carefully implemented.