Zimbabwe has implemented new indigenization regulations, requiring foreign-owned businesses in 14 designated industries (mostly services and retail) to transfer 75% ownership to Zimbabwean citizens in the next three years or be forced to shut down. Further, individuals who do not comply with these regulations could face fines and/or imprisonment of up to five years. Further, individuals who continue to operate their business after being fined will be barred from operating in the sector and doing business in the country for five years. The impact of these new regulations is expected to be small since many of the affected industries are already largely local-owned, but these new regulations mark the further ramping up of nationalist rhetoric and legislation by the government and may deter foreign investment.
This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen.
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