Government has formally introduced new regulations that reserve selected sectors of the economy exclusively for local investors, reinforcing its broader economic empowerment agenda.
Through Statutory Instrument 215 of 2025 — the Indigenisation and Economic Empowerment Regulations — foreign nationals operating in designated sectors have been given a 30-day window to submit divestment plans. The affected industries include passenger transport services, barber shops and salons, grain milling, estate agencies, borehole drilling, tobacco grading and packaging, artisanal mining, bakeries, advertising agencies, pharmaceuticals, shipping and freight forwarding, as well as haulage services, among others.
In cases where foreign-owned businesses are already established, the regulations require investors to cede at least 75 percent ownership to local citizens over a three-year period, with a minimum transfer of 25 percent per year.
The new law also introduces penalties for local individuals who assist or front for foreign nationals in an attempt to bypass the regulations.
Nevertheless, the framework provides room for exceptions. Foreign investors may continue operating in some of the reserved sectors if they apply to the Ministry of Industry and Commerce and are granted special permits. Businesses that fail to comply with the regulations risk suspension or cancellation of their operating licences.
Government officials say the measures are intended to expand citizen participation in the economy, following persistent calls from locals for greater access to investment and business opportunities.
Source- ZBC
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