While the law
is clear, enforcement seems to be a challenge.
Entrepreneurs
from Nigeria, Ghana, the Democratic Republic of Congo, Rwanda, India, China and
Tanzania have established retail outlets across Harare’s central business
district, including in key commercial areas such as Chinhoyi Street, Kaguvi
Street, and George Silundika Avenue.
But most of the
traders either operate using business licences registered under Zimbabwean
nationals or without business permits.
Investigations
revealed that foreign entrepreneurs are not only operating shops, but have also
taken control of entire buildings, which they rent and subdivide into smaller
stalls. These mini-markets are then leased out to locals, effectively creating
foreign-run shopping complexes.
In Sir Seretse
Khama Street, formerly Angwa Street, for
example, a Congolese national is managing over 20 retail units in one
commercial building.
None of the
businesses display valid investment licences from the Zimbabwe Investment and
Development Agency (ZIDA), among other requirements. The proliferation of
unregistered tuck shops and mini-markets has raised the alarm among local
entrepreneurs and formal retail chains.
Major
supermarkets such as TM Pick n Pay, OK Zimbabwe and Spar have been reporting
declining foot traffic and reduced sales partly because of unregulated
businesses.
These small
shops often offer basic goods like cooking oil, rice, sugar and clothing at
significantly lower prices than formal retailers, raising concerns over tax
evasion, smuggling and unfair competition.
Confederation
of the Zimbabwe Retailers (CZR) president Dr Denford Mutashu said the retail
and wholesale business falls under sectors reserved for Zimbabweans.
“We also have
reports of some investors who come into the country purportedly to invest in
manufacturing, mining or other productive sectors, only to divert into retail;
that is not only unfortunate but unacceptable,” he said.
“CZR will soon
take stock of who should remain or vacate the sector to pave the way for
locals. It is also disheartening that others have become a nuisance by pushing
illicit drugs, entering into marriages of convenience . . . , funding
opposition politics, engaging in money laundering and general disregard of the
country’s laws . . .
“Others have
operated retail and wholesale businesses with no traceable investment locally.
There are some who came into the country as ‘refugees’ but sneak in and out of
the country to build mansions in countries they ‘ran away’ from.”
Ministry of
Industry and Commerce Permanent Secretary Dr Thomas Utete Wushe said foreigners
could only operate in reserved sectors provided they have been authorised by
the minister.
“The concept of
reserved sectors emanates from the country’s endeavour to promote
indigenisation and economic empowerment of its citizens,” he said.
“The major
objective being that Zimbabwean citizens have a greater stake in the country’s
economy and thus need some protection from foreign competition, particularly in
sectors with very low barriers to entry or those that are not capital
intensive. In 2024, stakeholders lobbied for the addition of five more sectors
into reserved sectors, citing unfair competition from foreign-owned businesses,
and these were approved by the Minister of Finance after extensive
consultations.
“The Ministry
of Finance, Economic Development and Investment Promotion, through the Finance
Act No. 2 of 2024, amended the Indigenisation and Economic Empowerment Act to
include five more sectors in November 2024. The five added sectors are the
haulage and logistics industry; pharmaceutical retailing; shipping and
forwarding; customs and clearing; and borehole drilling.” Herald
