HARARE – The Zimbabwean government is gearing up to enforce strict regulations against foreign nationals operating in reserved economic sectors. The move comes as authorities attempt to curb the rejection of local currency and crack down on the smuggling of counterfeit goods by small to medium enterprises (SMEs). Despite legal protections under the amended Indigenisation and Economic Empowerment Act, foreign nationals continue to dominate key industries such as retail, transport, and wholesale trade.
Industry and Commerce Minister Mangaliso Ndlovu revealed that a Statutory Instrument will soon be introduced to enforce sector restrictions. He noted that many foreign business owners are operating illegally, with some having entered the country as refugees. “We will be enforcing the law fully,” Ndlovu said, adding that sectors such as quarrying, brick moulding, and sand mining have also been infiltrated by foreign nationals.
The local currency’s volatility has led many SMEs to reject it in favor of the U.S. dollar, disadvantaging consumers paid in local tender. Shop owners are reportedly manipulating point-of-sale systems to enforce U.S. dollar transactions, a practice the government aims to eliminate. To address this, authorities are working on regulations to ensure all businesses accept multiple currencies.
To further formalize the informal sector, officials from the Ministry of Finance, the Central Bank, and security agencies are set to visit India to study its centralized payment system. “This is a matter we are actively addressing,” Ndlovu stated, emphasizing that Zimbabwe seeks to create a structured, accountable SME sector contributing to the national economy.
