Finance Minister Mthuli Ncube said the government has decided to enforce the provisions of the Indigenisation and Economic Empowerment Act, which designates certain sectors as Reserved for Zimbabwean citizens.
In a statement, Ncube said President Emmerson Mnangagwa took time off his annual leave on Friday to chair a session focused on the economy’s developments and charting a way forward.
The session, attended by the two Vice Presidents and all Economic Ministries, discussed measures to address economic challenges and developments in specific sectors, including retail.
Ncube said the session proposed several measures to combat the informal economy, promote formalisation, and encourage tax compliance.
One of these measures includes enforcing the Reserved Sectors provisions of the Indigenisation and Economic Empowerment Act. Below are the Reserved Sectors:
FIRST SCHEDULE (Section 3A(1)) RESERVED/THRESHOLD SECTORS
1. Transportation: passenger buses, taxes and car hire services.
2. Retail and wholesale trade.
3. Barber shops, hairdressing and beauty saloons.
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 craft, marketing and distribution.
12. Artisanal mining.
[Schedule substituted by section 42 of Act 1/2018]
These Reserved Sectors are designated solely for Zimbabwean citizens, established under the Indigenisation and Economic Empowerment Act to promote local ownership and economic participation.
Recent changes now allow foreign investors to enter these sectors under specific conditions. The government is working to attract foreign direct investment (FDI) while continuing to prioritize local ownership.
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