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Message: [QUOTE="Munyaradzi Mafaro, post: 81753, member: 636"] Foreign business owners in reserved sectors face a three-month deadline to comply or shut down. Zimbabwe's government is enforcing new regulations, giving foreign-owned businesses in sectors like retail, transport, and hairdressing until the end of March to regularize their operations. Industry Minister Nqobizitha Mangaliso Ndlovu stated that this follows the gazetting of Statutory Instrument 215 of 2025, which sets clear thresholds for exemptions. Businesses must submit documents, including their company memorandum, proof of a local bank account, and a valid investment certificate from the Zimbabwe Investment and Development Agency. Minister Ndlovu emphasized that the policy is not new but lacked a clear framework until now. It aims to prevent locals from being crowded out of low-entry-cost sectors by foreign capital, ensuring economic participation for Zimbabweans. He reiterated that the country remains open to foreign direct investment in capital-intensive projects, but is committed to safeguarding smaller-scale industries for citizens. An awareness campaign begins this month, with a potential hotline for investor inquiries. The regulations require foreign-owned businesses already operating in reserved sectors to submit a regularization plan and divest at least seventy five percent of equity to Zimbabwean citizens over three years. Sectors like barber shops, beauty salons, and artisanal mining are exclusively reserved for locals, while others like grain milling allow limited foreign participation under strict investment and employment thresholds. Applicants will receive a response by March, with compliant businesses getting a certificate or exemption. Those operating illegally will be formally barred. The regulations also introduce strict beneficial ownership disclosures to prevent fronting, with severe penalties including fines and potential imprisonment for false declarations. [/QUOTE]

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