Zimbabwe has withdrawn regulations that would have required telecommunications companies to maintain at least 75% indigenous local ownership, reversing the policy only weeks after it was introduced.
The decision was formalized through Statutory Instrument (SI) 111 of 2026, signed by the Minister of Information Communication Technology, Postal and Courier Services. The new instrument repeals the ownership provisions contained in SI 101 of 2026, effectively removing the mandatory local ownership requirement for telecom licensees.
Under the now-revoked regulations, which were gazetted on 12 June 2026, all telecommunications license holders were required to ensure that at least 75% of their shareholding was owned by indigenous Zimbabweans. Existing operators that fell below the threshold were instructed to submit compliance plans within 30 days and align their ownership structures within two years.
With the repeal, those obligations no longer apply, giving both existing operators and prospective investors greater flexibility in structuring ownership.
The policy reversal is expected to reassure foreign investors and multinational telecommunications companies operating in Zimbabwe. Industry observers had expressed concerns that the ownership rules could discourage foreign direct investment, complicate funding for network expansion, and slow the rollout of digital infrastructure and communications services.
Although the government has not provided a detailed explanation for the reversal, the decision is widely seen as a move to improve Zimbabwe’s investment climate and strengthen confidence in the country’s ICT sector.
By removing the mandatory local ownership requirement, Zimbabwe signals a more open approach to attracting domestic and international investment while supporting continued growth in telecommunications and the broader digital economy.
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FAQ
1. What changed in Zimbabwe’s telecommunications regulations?
The government has repealed the rule that required telecommunications operators to maintain at least 75% indigenous Zimbabwean ownership.
2. Which law removed the ownership requirement?
The repeal was enacted through Statutory Instrument (SI) 111 of 2026, which revoked the relevant provisions in SI 101 of 2026.
3. What did the previous regulation require?
It required telecom licensees to have at least 75% local ownership and gave existing operators up to two years to comply.
4. Why is the repeal significant?
It removes a major ownership restriction, making Zimbabwe’s telecommunications sector more attractive to foreign investors and international operators.
5. Did the government explain why it reversed the policy?
No detailed official explanation has been provided. However, the reversal follows industry concerns that the rule could discourage investment and delay digital infrastructure development.
6. How does this affect existing telecom companies?
Operators are no longer required to restructure their ownership or submit compliance plans related to the repealed local ownership requirement.
7. What could this mean for Zimbabwe’s digital economy?
The move could encourage greater investment in telecommunications infrastructure, expand digital services, and improve the country’s competitiveness as a destination for ICT investment.
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