Stakeholders Welcome Laws Reserving Key Sectors for Locals

Stakeholders in transport and mining have welcomed new laws reserving key economic sectors for locals (image source)

HARARE — Stakeholders in the transport and mining sectors have welcomed the promulgation of laws reserving certain sectors of the economy exclusively for local citizens, describing the move as a long-overdue intervention to protect indigenous operators.

The statutory instrument prohibits foreign nationals from participating in designated reserved sectors, including retail, pharmaceuticals, freight forwarding, passenger transport and artisanal mining. Government says the policy is intended to safeguard local participation while redirecting foreign investment towards higher-value economic activities.

Zimbabwe Indigenous Transporters Association (ZITA) chairperson Mr Simon Gambiza said the new regulations would allow local operators to reclaim lost ground in the transport industry. He noted that large mining companies had increasingly relied on their own transport subsidiaries, sidelining indigenous players.

“Government has now acted, allowing local transporters to return to business and participate meaningfully in the sector,” Gambiza said.

The Zimbabwe Union of Drivers and Conductors (ZUDAC) also welcomed the move, saying foreign nationals had come to dominate the passenger transport sector. Secretary-General Mr Frederick Magumamhinga said the policy would protect local operators and help curb cartel-like practices.

“Foreigners had taken over the passenger transport business, limiting opportunities for locals. Some cartels were even forming, so Government has done well to ensure locals can fully participate in the economy,” he said.

In the mining sector, the reservation of artisanal and small-scale mining for local citizens has been viewed as a boost to an industry that contributes about 70 percent of Zimbabwe’s gold output. Zimbabwe Miners Federation (ZMF) president Ms Henrietta Rushwaya said the policy would strengthen the sector’s performance.

“This will grow the contribution of artisanal miners, who have already surpassed their targets this year. Maximum local citizen participation is good for the sector, while foreign investors can move up the value chain to make more meaningful contributions,” she said.

Government officials say reserving entry-level sectors for locals will promote citizen empowerment, while encouraging foreign capital to focus on beneficiation, industrialisation and infrastructure development. Analysts agree the policy could help rebalance economic participation and empower communities, but caution that effective enforcement and support for local operators will be critical for the policy to succeed.