Government has announced the enforcement of reserved sector provisions under the country’s Indigenisation Law.
The decision, revealed in a series of measures published by the Ministry of Finance and Economic Development yesterday, restricts foreign involvement in 12 key sectors, reserving them exclusively for Zimbabwean citizens.
Permanent Secretary in the Ministry of Information, Publicity, and Broadcasting Services, Nick Mangwana, confirmed the development in a social media post, listing the sectors affected by the new enforcement.
“In the measures published by @ZimTreasury yesterday, one of them said that Govt will enforce the Reserved Sector provisions of our Indigenisation Law,” Mangwana said.
The reserved sectors include:
1. Transportation: Passenger buses, taxis, and car hire services.
2. Retail and wholesale trade.
3. Barber shops, hairdressing, and beauty salons.
4. Employment agencies.
5. Estate agencies.
6. Valet services.
7. Grain milling.
8. Bakeries.
9. Tobacco grading and packaging.
10. Advertising agencies.
11. Provision of local arts and crafts, marketing, and distribution.
12. Artisanal mining.
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The move is part of the government’s broader strategy to empower local entrepreneurs and reduce foreign dominance in sectors deemed critical for grassroots economic development. The Indigenisation Law, first introduced in 2008, has been a cornerstone of Zimbabwe’s economic policy, though its implementation has faced criticism and challenges over the years.
Mixed Reactions from Stakeholders
The announcement has sparked mixed reactions from economists, business leaders, and the public. Proponents argue that the policy will create opportunities for local businesses and stimulate job creation.
“This is a step in the right direction. For too long, foreign players have dominated sectors that Zimbabweans can easily manage. This will ensure that wealth remains within our borders,” said , a Harare-based economist.
However, critics warn that the policy could deter foreign investment and lead to inefficiencies in the reserved sectors. Some have also raised concerns about the capacity of local businesses to meet demand in key areas such as transportation and grain milling.
“While the intention is noble, the government must ensure that local businesses have the necessary support, including access to capital and training, to thrive in these sectors,” said Simbarashe Tafirenyika, a business consultant.
Enforcement and Implementation Challenges
The success of the policy will largely depend on its enforcement and the government’s ability to address potential loopholes. Past attempts to implement similar measures have been marred by corruption and a lack of transparency, leading to skepticism about the latest move.
“The devil is in the details. We need clarity on how this will be enforced and what mechanisms will be put in place to prevent abuse,” said Farai Mutambanengwe, a legal expert specializing in corporate law.
The government has yet to provide a detailed timeline for the implementation of the policy or outline specific measures to support local businesses entering the reserved sectors.
*Broader Economic Context*
The enforcement of reserved sectors comes amid ongoing efforts by the government to revive Zimbabwe’s struggling economy. With high unemployment rates and a growing informal sector, the policy is seen as an attempt to formalize and empower local enterprises.
However, analysts caution that the policy must be part of a broader economic strategy that includes improving the ease of doing business, tackling corruption, and attracting foreign investment in non-reserved sectors.
As the government moves to enforce the Indigenisation Law, all eyes will be on how effectively it can balance the empowerment of local businesses with the need to maintain a competitive and investor-friendly economy.
