How foreign entrepreneurs are taking over Zimbabwe’s retail market – Tricks they are using to bypass regulations
Foreign entrepreneurs are increasingly taking over Zimbabwe’s retail market — a space legally reserved for local citizens — by using loopholes and clever tactics to bypass government regulations.
“We also have reports of investors entering the country claiming to invest in manufacturing, mining or other productive sectors, only to divert into retail. That is not only unfortunate but unacceptable,” said Dr Denford Mutashu, president of the Confederation of Zimbabwe Retailers (CZR).
Foreign-run shops flood Harare streets
According to a detailed report by Sunday News, traders from Nigeria, Ghana, the DRC, Rwanda, India, China and Tanzania have opened numerous retail outlets in Harare’s CBD. Major concentrations are on Chinhoyi Street, Kaguvi Street, Angwa Street and George Silundika Avenue.
Investigations revealed that many operate without valid licences or under the names of Zimbabwean nationals. One Congolese national, based on Angwa Street, reportedly manages over 20 units in a single building, without displaying any licences from the Zimbabwe Investment and Development Agency (ZIDA).
“Some operate retail and wholesale businesses with no traceable local investment,” said Dr Mutashu.
“There are even individuals who entered Zimbabwe as ‘refugees’ but frequently travel back to build luxurious homes in the very countries they claimed to have fled from.”
The report also exposed how some foreign nationals secure whole buildings, convert them into stalls, and rent them out — creating foreign-managed mini-markets operating outside of formal regulation.
Formal retailers cry foul
Local supermarkets like TM Pick n Pay, OK Zimbabwe and Spar have seen sharp drops in foot traffic and sales. Informal shops often sell goods like cooking oil, rice and sugar at lower prices — sometimes below market value.
“This has raised concerns about tax evasion, smuggling, and unfair trading practices,” noted Sunday News.
Dr Thomas Utete Wushe, Permanent Secretary in the Ministry of Industry and Commerce, emphasised that foreign involvement in reserved sectors must be approved.
“The concept of reserved sectors stems from the country’s commitment to promoting indigenisation and the economic empowerment of Zimbabwean citizens,” he said.
“Foreign investors wishing to participate in reserved sectors must formally apply to the Minister of Industry and Commerce.”
He acknowledged that gaps in the regulatory framework and the absence of sector-specific thresholds had made enforcement inconsistent.
Government under pressure to act
The Finance Act No. 2 of 2024 expanded the reserved list to include haulage and logistics, pharmaceutical retail, customs and clearing, shipping and forwarding, and borehole drilling. These join the traditional retail and wholesale sectors.
“CZR will soon conduct a stocktake to determine who should remain or vacate the sector to create space for locals,” added Dr Mutashu.
Despite these efforts, foreign traders continue to operate unchecked — allegedly aided by corrupt municipal officials. Local traders are now calling on the Government to enforce existing laws and restore fairness.
Harare City Council spokesperson, Mr Stanley Gama, said:
“We screen all new applications. Those falling under reserved sectors are informed of the requirement to produce ministerial approval before a licence can be issued.”
With foreign traders gaining ground and formal businesses losing revenue, pressure is mounting on authorities to tighten enforcement, close loopholes, and preserve opportunities for Zimbabweans.