CZR Welcomes Reserved Sector Policy, Backs Balanced Investment Framework

CZR has welcomed Zimbabwe’s reserved sector policy under SI 215 of 2025, saying it protects local businesses while promoting balanced and productive foreign investment (image source)

HARARE — The Confederation of Zimbabwe Retailers (CZR) has welcomed Government’s reserved sector policy, saying the new regulations strike a balance between protecting local businesses and allowing structured, high-impact foreign investment.

The policy is contained in Statutory Instrument 215 of 2025, issued by the Ministry of Industry and Commerce. It outlines economic sectors reserved for Zimbabwean citizens while setting clear participation thresholds for foreign investors in non-reserved areas of the economy.

Under the regulations, 13 sectors are reserved exclusively for local participation. These include 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 arts and crafts. Foreign-owned businesses already operating in these sectors are required to progressively reduce their shareholding, transferring at least 75 percent ownership to Zimbabwean citizens within three years, at a minimum rate of 25 percent per year.

In a statement, CZR president Mr Denford Mutashu said the policy reflects a deliberate effort to empower citizens while safeguarding long-term economic growth.

“These regulations preserve specific economic spaces for Zimbabwean citizens, while ensuring that foreign investment is directed towards high-impact and capital-intensive sectors that support industrialisation,” Mutashu said.

CZR also welcomed the introduction of minimum investment and employment thresholds for foreign firms operating in non-reserved sectors, describing them as a way to ensure that foreign direct investment delivers measurable economic value. Under the new framework, foreign investors in retail and wholesale trade are required to invest a minimum of US$20 million and employ at least 200 people. In grain milling, the threshold is US$25 million with a minimum workforce of 50 employees, while haulage and logistics firms must invest at least US$10 million and employ 100 workers.

The retailers’ body said the thresholds are designed to promote meaningful participation that contributes to job creation, industrial growth and supply-chain development. CZR also expressed support for provisions requiring manufacturers to distribute products through locally owned wholesale and retail channels, arguing that this strengthens domestic value chains and broadens participation by Zimbabwean businesses.

“This provision supports local traders and ensures broader participation by Zimbabwean businesses across distribution networks,” the organisation said.

Mutashu said the reserved sector policy aligns with Government’s broader objectives of inclusive growth, citizen empowerment and sustainable economic development.

“As retailers, we support this policy direction. It promotes fair competition, protects local enterprise and contributes to a more balanced and resilient economy,” he said.