CZR Hails SI 215 of 2025 as Milestone for Citizen Economic Empowerment
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Business Buzz – The promulgation of Statutory Instrument 215 of 2025 has been widely welcomed by the business community, with the Confederation of Zimbabwe Retailers (CZR) describing the Reserved Sector Regulations as a decisive and progressive step towards strengthening indigenous participation in the economy while safeguarding space for meaningful foreign investment.
In a complimentary statement issued on 26 December 2025, the CZR commended Government, through the Ministry of Industry and Commerce, for providing clarity, balance and predictability in a policy area that directly affects livelihoods, entrepreneurship and national economic sovereignty .
At the heart of SI 215 of 2025 is Government’s intention to deliberately preserve specific economic spaces for Zimbabwean citizens, particularly in sectors that are small to medium scale and labour intensive. According to CZR, this approach recognises the importance of empowering local entrepreneurs who form the backbone of the retail and wholesale sector, while at the same time ensuring that foreign direct investment is channelled into high impact, capital intensive industrialisation. This dual approach, the organisation noted, strikes a careful balance between protecting local businesses and maintaining Zimbabwe’s openness to investment that brings technology transfer, skills development and employment creation.
The Confederation expressed appreciation for the Ministry’s clear articulation that thirteen sectors are now exclusively reserved for Zimbabwean citizens. These include artisanal and small scale mining, barber shops, hair dressing and beauty salons, employment agencies, valet services, passenger transport such as buses, taxis and car hire services, customs clearing, tobacco grading and packaging, bakeries, advertising agencies, estate agencies, pharmaceutical retailing, borehole drilling, and the provision of local arts and crafts including their marketing and distribution. CZR said the clarity provided by listing these sectors removes uncertainty and speculation, allowing businesses to plan confidently within a well defined regulatory environment.
For many small and medium enterprises, especially those operating in retail, services and community based trades, the reserved sectors framework is viewed as a shield against unfair competition. CZR emphasised that these sectors are critical entry points for ordinary Zimbabweans seeking to participate meaningfully in economic activity. By ring fencing them, Government is enabling citizens to build capital, acquire skills and grow enterprises that can later expand into more competitive and capital intensive areas of the economy.
Equally significant in SI 215 of 2025 is the transitional arrangement for foreign nationals already operating within reserved sectors. The regulation requires such investors to dispose of a minimum of seventy five percent shareholding to Zimbabwean citizens within a three year period, with at least twenty five percent disposed of each year. CZR described this structured approach as fair and pragmatic, as it provides certainty and predictability for all stakeholders. Rather than abrupt disruption, the phased transition allows businesses to adjust gradually, form local partnerships and ensure continuity of operations while complying with the law.
The Confederation further noted that the regulation goes beyond blanket exclusion by recognising that foreign participation remains valuable when it brings substantial capital and employment opportunities. SI 215 of 2025 sets out clear minimum investment and employment thresholds for selected sectors such as retail and wholesale trade, grain milling, haulage and logistics, and shipping and forwarding. Under these provisions, foreign investors may only participate if they meet prescribed benchmarks that demonstrate tangible benefit to the Zimbabwean economy. CZR said these thresholds reinforce Government’s intention that foreign involvement must translate into real value addition, job creation and industrial growth rather than crowding out local players.
Of particular importance to the retail community is the Ministry’s guidance that only locally owned businesses are allowed to operate in the retailing and wholesaling sector, coupled with a directive for manufacturing companies to utilise the correct distribution channels. CZR said this measure directly strengthens indigenous retailers by preventing vertically integrated practices that disadvantage smaller operators. By ensuring that manufacturers do not bypass local distribution networks, the policy promotes fair competition and sustainability across the supply chain, from producers to wholesalers and retailers.
The Confederation described SI 215 of 2025 as a clear signal of Government’s commitment to citizen economic empowerment, fair competition and the protection of local enterprises. In an economy where retail and wholesale trade employs thousands and supports countless households, such protection is seen as vital for social stability and inclusive growth. CZR believes that the regulation will help level the playing field, allowing local businesses to thrive without being overwhelmed by entities with disproportionate financial muscle.
Beyond immediate economic benefits, the Reserved Sector Regulations are also viewed as reinforcing national economic sovereignty. By defining who participates where, and under what conditions, Zimbabwe is asserting control over its development trajectory. CZR said this approach is consistent with broader national objectives of building a self sustaining economy driven by empowered citizens who are active participants rather than passive spectators.
The Confederation concluded its statement by extending sincere gratitude to Government for enacting the Reserved Sectors law, describing it as a decisive step that balances empowerment with openness. SI 215 of 2025, CZR said, demonstrates that Zimbabwe can pursue policies that protect local interests while still welcoming high impact investment that aligns with national priorities. The organisation reaffirmed its commitment to working closely with Government and other stakeholders to ensure smooth implementation, compliance and maximum economic benefit for Zimbabwean citizens.
As the regulations take effect, attention will now shift to implementation and enforcement. For CZR and its members, the success of SI 215 of 2025 will ultimately be measured by the growth and sustainability of indigenous enterprises, the creation of decent jobs, and the emergence of a more equitable and competitive business environment. In that sense, the Reserved Sector Regulations are not just a legal instrument, but a statement of intent about the kind of economy Zimbabwe seeks to build going forward.
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