Foreigners tighten grip on Zimbabwe's retail sector

Foreign nationals are increasingly dominating Zimbabwe's retail sector, raising concerns over the flouting of laws that reserve the industry for indigenous Zimbabweans.

Despite legal provisions meant to empower locals through economic indigenisation, enforcement appears weak, with foreign entrepreneurs from countries such as Nigeria, Ghana, the Democratic Republic of Congo (DRC), Rwanda, India, China, and Tanzania setting up shop in Harare's central business district (CBD).

The affected areas include prominent commercial streets such as Chinhoyi Street, Kaguvi Street, George Silundika Avenue, and Sir Seretse Khama Street (formerly Angwa Street), where foreign traders are running tuck shops, clothing stalls, and mini-markets — often without the required investment licences or permits.

Investigations reveal that many of these businesses operate under Zimbabwean front names or with no legal documentation at all. Some foreigners have gone further to lease entire commercial buildings, which they subdivide into multiple retail units, effectively establishing informal shopping complexes run outside regulatory frameworks.

A Congolese national, for instance, reportedly manages over 20 units in one commercial building along Sir Seretse Khama Street, with no visible trace of licensing from the Zimbabwe Investment and Development Agency (ZIDA) or any other regulatory body.

This unregulated expansion has alarmed formal retailers and local business organisations, who accuse these operators of undermining fair trade through tax evasion, smuggling, and underpricing. Retail giants like OK Zimbabwe, TM Pick n Pay, and Spar have cited dwindling customer numbers and reduced sales, partly due to competition from these informal outlets.

Confederation of Zimbabwe Retailers (CZR) president Dr Denford Mutashu condemned the trend, warning that the wholesale and retail sectors remain legally reserved for Zimbabweans.

"We have seen a disturbing trend where foreigners, some of whom come under the guise of investing in manufacturing or mining, divert into retail. This is not only unfortunate but unlawful," Mutashu said.

He added that the CZR is preparing to conduct an audit to identify illegal operators and push for their removal from the sector. He also raised red flags about some foreigners allegedly engaging in illicit activities.

"It is disheartening that some individuals have become a public nuisance — pushing drugs, funding opposition politics, laundering money, and even entering into marriages of convenience to secure residency," he said. "Some came as refugees but now travel in and out freely, building luxurious homes in their home countries."

Permanent Secretary in the Ministry of Industry and Commerce, Dr Thomas Utete Wushe, reaffirmed that foreigners can only operate in reserved sectors with explicit ministerial approval.

"The reserved sectors concept aims to ensure Zimbabweans play a leading role in economic development, particularly in sectors that require low capital investment," Dr Wushe explained.

He noted that the Finance Act No. 2 of 2024 expanded the reserved sector list after consultations, adding haulage and logistics, pharmaceutical retailing, shipping and forwarding, customs and clearing, and borehole drilling to the existing list.

"As enforcement agencies, we are working to ensure compliance, but we also urge communities and businesses to report violations so that authorities can act," he added.

As pressure mounts from local business leaders and citizens, attention is now turning to whether government institutions will act decisively to restore the integrity of Zimbabwe's retail space and ensure that laws protecting indigenous participation are effectively upheld.