{"id":852077,"date":"2025-05-29T22:12:23","date_gmt":"2025-05-30T03:12:23","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2025\/05\/29\/how-foreigners-are-using-legal-loopholes-to-flood-zimbabwes-retail-sector-reserved-for-locals\/"},"modified":"2025-05-29T22:12:23","modified_gmt":"2025-05-30T03:12:23","slug":"how-foreigners-are-using-legal-loopholes-to-flood-zimbabwes-retail-sector-reserved-for-locals","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2025\/05\/29\/how-foreigners-are-using-legal-loopholes-to-flood-zimbabwes-retail-sector-reserved-for-locals\/","title":{"rendered":"How Foreigners Are Using Legal Loopholes To Flood Zimbabwe\u2019s Retail Sector Reserved For Locals"},"content":{"rendered":"<div>\n<h3 data-start=\"0\" data-end=\"116\">How foreign entrepreneurs are taking over Zimbabwe\u2019s retail market \u2013 Tricks they are using to bypass regulations<\/h3>\n<p class data-start=\"118\" data-end=\"313\">Foreign entrepreneurs are increasingly taking over Zimbabwe\u2019s retail market \u2014 a space legally reserved for local citizens \u2014 by using loopholes and clever tactics to bypass government regulations.<\/p>\n<blockquote data-start=\"315\" data-end=\"606\">\n<p class data-start=\"317\" data-end=\"606\">\u201cWe 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,\u201d said Dr Denford Mutashu, president of the Confederation of Zimbabwe Retailers (CZR).<\/p>\n<\/blockquote>\n<ul>\n<li data-start=\"317\" data-end=\"606\">Also Read:\u00a0<a href=\"https:\/\/iharare.com\/chillmaster-pledges-to-pay-school-fees-buy-groceries-and-beasts-to-avoid-avenging-spirits\/\">Forgiven by the Family: Chillmaster Pledges to Pay School Fees, Buy Groceries and Beasts to Avoid Avenging Spirits<\/a><\/li>\n<\/ul>\n<h3 class data-start=\"608\" data-end=\"650\">Foreign-run shops flood Harare streets<\/h3>\n<p class data-start=\"652\" data-end=\"944\">According to a detailed report by <a href=\"https:\/\/www.heraldonline.co.zw\/foreign-entrepreneurs-flourishing-in-reserved-sectors\/\" target=\"_blank\" rel=\"noopener\"><em data-start=\"686\" data-end=\"699\">Sunday News<\/em><\/a>, traders from Nigeria, Ghana, the DRC, Rwanda, India, China and Tanzania have opened numerous retail outlets in Harare\u2019s CBD. Major concentrations are on Chinhoyi Street, Kaguvi Street, Angwa Street and George Silundika Avenue.<\/p>\n<p class data-start=\"946\" data-end=\"1248\">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).<\/p>\n<blockquote data-start=\"1250\" data-end=\"1525\">\n<p class data-start=\"1252\" data-end=\"1525\">\u201cSome operate retail and wholesale businesses with no traceable local investment,\u201d said Dr Mutashu.<br data-start=\"1351\" data-end=\"1354\">\u201cThere are even individuals who entered Zimbabwe as \u2018refugees\u2019 but frequently travel back to build luxurious homes in the very countries they claimed to have fled from.\u201d<\/p>\n<\/blockquote>\n<p class data-start=\"1527\" data-end=\"1725\">The report also exposed how some foreign nationals secure whole buildings, convert them into stalls, and rent them out \u2014 creating foreign-managed mini-markets operating outside of formal regulation.<\/p>\n<h3 class data-start=\"1727\" data-end=\"1756\">Formal retailers cry foul<\/h3>\n<p class data-start=\"1758\" data-end=\"1979\">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 \u2014 sometimes below market value.<\/p>\n<blockquote data-start=\"1981\" data-end=\"2090\">\n<p class data-start=\"1983\" data-end=\"2090\">\u201cThis has raised concerns about tax evasion, smuggling, and unfair trading practices,\u201d noted <em data-start=\"2076\" data-end=\"2089\">Sunday News<\/em>.<\/p>\n<\/blockquote>\n<p class data-start=\"2092\" data-end=\"2250\">Dr Thomas Utete Wushe, Permanent Secretary in the Ministry of Industry and Commerce, emphasised that foreign involvement in reserved sectors must be approved.<\/p>\n<blockquote data-start=\"2252\" data-end=\"2413\">\n<p class data-start=\"2254\" data-end=\"2413\">\u201cThe concept of reserved sectors stems from the country\u2019s commitment to promoting indigenisation and the economic empowerment of Zimbabwean citizens,\u201d he said.<\/p>\n<\/blockquote>\n<blockquote data-start=\"2415\" data-end=\"2541\">\n<p class data-start=\"2417\" data-end=\"2541\">\u201cForeign investors wishing to participate in reserved sectors must formally apply to the Minister of Industry and Commerce.\u201d<\/p>\n<\/blockquote>\n<p class data-start=\"2543\" data-end=\"2677\">He acknowledged that gaps in the regulatory framework and the absence of sector-specific thresholds had made enforcement inconsistent.<\/p>\n<h3 class data-start=\"2679\" data-end=\"2715\">Government under pressure to act<\/h3>\n<p class data-start=\"2717\" data-end=\"2957\">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.<\/p>\n<blockquote data-start=\"2959\" data-end=\"3094\">\n<p class data-start=\"2961\" data-end=\"3094\">\u201cCZR will soon conduct a stocktake to determine who should remain or vacate the sector to create space for locals,\u201d added Dr Mutashu.<\/p>\n<\/blockquote>\n<p class data-start=\"3096\" data-end=\"3309\">Despite these efforts, foreign traders continue to operate unchecked \u2014 allegedly aided by corrupt municipal officials. Local traders are now calling on the Government to enforce existing laws and restore fairness.<\/p>\n<p class data-start=\"3311\" data-end=\"3367\">Harare City Council spokesperson, Mr Stanley Gama, said:<\/p>\n<blockquote data-start=\"3369\" data-end=\"3537\">\n<p class data-start=\"3371\" data-end=\"3537\">\u201cWe screen all new applications. Those falling under reserved sectors are informed of the requirement to produce ministerial approval before a licence can be issued.\u201d<\/p>\n<\/blockquote>\n<p class data-start=\"3539\" data-end=\"3733\">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.<\/p>\n<p>\n\t    <a href=\"https:\/\/news.google.com\/publications\/CAAiEC-6fnvdO-saQK6Qy6bTGHgqFAgKIhAvun573TvrGkCukMum0xh4?ceid=IN:en&#038;oc=3\">Follow Us on Google News for Immediate Updates<\/a>\n\t<\/p>\n<\/p><\/div>\n<p><a href=\"https:\/\/iharare.com\/how-foreigners-are-using-legal-loopholes-to-flood-zimbabwes-retail-sector\/\" class=\"button purchase\" rel=\"nofollow noopener\" target=\"_blank\">Read More<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>How foreign entrepreneurs are taking over Zimbabwe\u2019s retail market \u2013 Tricks they are using to bypass regulations Foreign entrepreneurs are increasingly taking over Zimbabwe\u2019s retail market \u2014 a space legally reserved for local citizens \u2014 by using loopholes and clever tactics to bypass government regulations. \u201cWe also have reports of investors entering the country claiming<\/p>\n","protected":false},"author":1,"featured_media":852078,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31073,151],"tags":[18610,6227],"class_list":{"0":"post-852077","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-foreigners","8":"category-using","9":"tag-foreigners","10":"tag-using"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/852077","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=852077"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/852077\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/852078"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=852077"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=852077"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=852077"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}