ZIMBABWE Law and Practice Contributed by: George Gapu, Fidelis Manyuchi and Tapiwa John Chivanga, Scanlen & Holderness
operate in some of these spheres with the approval of the Ministry of Industry and Commerce and the Indigenisation and Economic Empowerment Unit. The reserved sectors and their limitations (where applica - ble) are as follows: • agriculture – primary production of food and cash crops; • transportation – passenger buses, taxis and car- hire services (this sector is exclusively for Zimba - bweans, excepting international brands); • retail and wholesale trade – subject to the busi - ness having a minimum number of full-time paid employees of 200 people and a minimum invest - ment of USD 20 million; • barber shops, hairdressing and beauty salons – this sector is exclusively for Zimbabweans; • employment agencies – this sector is exclusively for Zimbabweans; • estate agencies – this sector is exclusively for Zim - babweans, excepting international brands; • valet services – this sector is exclusively for Zimba - bweans; • grain milling – subject to the business having a minimum number of full-time paid employees of 50 people and a minimum investment of USD 25 million; • bakeries – this sector is exclusively for Zimbabwe - ans; • tobacco grading and packaging – this sector is exclusively for Zimbabweans; • tobacco processing; • advertising agencies – this sector is exclusively for Zimbabweans; • milk processing; • artisanal mining – this sector is exclusively for Zimbabweans; • borehole drilling – this sector is exclusively for Zimbabweans; • pharmaceutical retailing – this sector is exclusively for Zimbabweans; • clearing and customs – this sector is exclusively for Zimbabweans, excepting international brands; • shipping and forwarding – subject to the busi - ness having a minimum number of full-time paid employees of 20 people and a minimum invest - ment of USD 1 million;
• haulage and logistics – subject to the busi - ness having a minimum number of full-time paid employees of 100 people and a minimum invest - ment of USD 10 million; and • provision of local arts and crafts, and their market - ing and distribution – this sector is exclusively for Zimbabweans. Foreign businesses operating in these reserved sec - tors have been given three years (up to 2028) to pro - gressively divest a minimum of 75% of their equity to Zimbabwean citizens. Furthermore, any controlling interest in a telecom - munications company must be held, directly or indi - rectly, by one or more individuals who are citizens of Zimbabwe who are ordinarily resident in Zimbabwe. A controlling interest is defined as: • the majority of shares in the company; • shares representing more than half the share capi - tal of the company; • shares with a value in excess of half the share capital of the company; or • shares entitling the holders thereof to a majority or preponderance of votes in the affairs of the com - pany. Further, advance approval must be granted in respect of listed securities for a single foreign investor to pur - chase up to 15% per counter and for a group of for - eign investors to purchase up to 49% per counter. For one to acquire a significant interest in a financial institution, the approval of the Registrar of Banks is required. A proportion of 5% of the shares in the com - pany is recognised as a significant interest. 2.4 Antitrust Regulations The primary antitrust law in the Zimbabwean jurisdic - tion is the Competition Act (Chapter 14:28), which is designed to: • promote and maintain competition in the economy of Zimbabwe; • establish the Competition and Tariff Commission and provide for its functions;
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