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Zimbabwe Bans Foreign Investors in the Haulage and Logistics Sector

In a strategic move to bolster economic indigenisation, the Zimbabwean government has officially reserved the haulage and logistics sector exclusively for local citizens. This initiative is part of a broader effort to empower Zimbabweans by fostering local ownership and participation in vital economic sectors.

On April 15, 2024, the Ministry of Industry and Commerce, in collaboration with the Ministry of Transport and Infrastructural Development, issued a comprehensive joint statement outlining these significant changes. They urged all foreign investors currently operating within the sector to adhere strictly to the new regulations established under the Finance Act of 2024.

The legislation, which is documented under General Notice 1345A of 2024, amends the existing Indigenisation and Economic Empowerment Act [Chapter 14:33]. It explicitly designates the haulage and logistics sector as restricted to Zimbabwean citizens, thereby encompassing a wide range of activities, including the transportation of goods, cargo, fuel, mineral ores, and various consumables across Zimbabwe’s extensive road network.

The government has underscored the essential role that businesses in this sector play in contributing to the country’s overall economic development and empowerment strategies. To this end, foreign entities engaged in haulage and logistics are now required to submit detailed applications to the Ministry of Industry and Commerce. These applications must clearly outline how their operations will align with the revised economic empowerment framework, demonstrating a commitment to supporting local economies.

Continued participation in the haulage and logistics sector will be contingent on foreign investors proving their contributions to local employment generation, skills transfer, and the development of sustainable value chains. Moreover, adherence to national socio-economic objectives is mandated. Investors must also comply with regulations set forth by key regulatory bodies, including the Reserve Bank of Zimbabwe (RBZ), the Zimbabwe Revenue Authority (ZIMRA), and the National Social Security Authority (NSSA), to ensure full compliance with national standards and policies.

In the statement, Dr. T. Utete Wushe, the Secretary for Industry and Commerce, and Eng. J.P. Makumbe, the Secretary for Transport and Infrastructural Development, reiterated the government’s firm stance on promoting local economic participation. They emphasized that properly aligning foreign investments with Zimbabwe’s development goals is vital for achieving long-term sustainability and resilience within the haulage and logistics sector. The government’s strategic decision aims not only to enhance local ownership but also to stimulate economic growth and create opportunities for Zimbabwean businesses and individuals.

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