In a dramatic policy U-turn that has sent ripples through Africa's telecommunications sector, the Zimbabwean government has repealed controversial regulations requiring telecom operators to be at least 75% locally owned — just three weeks after they were gazetted.
The reversal, formalised through Statutory Instrument 111 of 2026, was signed by the Minister of Information Communication Technology, Postal and Courier Services. It effectively cancels Statutory Instrument 101 of 2026, which had been published on the 12th of June and sent shockwaves through an industry already navigating a challenging macroeconomic environment.
What the original SI demanded
SI 101 of 2026 had imposed sweeping ownership requirements on every telecommunications licensee operating in Zimbabwe. Foreign ownership was capped at 25%, existing licence holders were ordered to submit restructuring plans within 90 days demonstrating how they would reach the 75% local threshold, and operators were given three years to fully comply.
The regulations made no distinction between different types of telecom operators — they applied equally to mobile network operators, internet service providers, and infrastructure companies.
Who would have been affected
The rule would have had significant implications for Zimbabwe's telecom landscape. Econet Wireless Zimbabwe — the country's largest mobile operator with millions of subscribers — is majority owned through international investment structures linked to Econet Global, which would have required substantial restructuring. Liquid Intelligent Technologies Zimbabwe, part of the pan-African Cassava Technologies group, also carries significant foreign investment. Even Starlink, which only recently entered the Zimbabwean market through local partnerships after securing regulatory approval, operates with foreign capital.
NetOne and TelOne, the two state-owned operators, were the only major players that would have been largely unaffected.
The regulations also carried implications for global technology partners like Huawei Technologies and ZTE Corporation, which supply network equipment and support broadband infrastructure development across the country.
Silent reversal, loud message
The Government has not publicly explained the reasons for the repeal. The SI itself is terse — simply stating that "The Postal and Telecommunications (Ownership Requirements for Licences) Regulations, 2026, published in Statutory Instrument 101 of 2026, are hereby repealed." No analysis, no justification, no commentary.
But the context speaks volumes. Analysts had warned that the mandatory ownership changes would discourage new investment and complicate capital raising by operators with foreign shareholders. Telecommunications is one of the most capital-intensive sectors — requiring substantial long-term investment in mobile towers, fibre optic networks, spectrum acquisition, and digital technologies. Infrastructure investments in this sector are typically recovered over many years, making regulatory stability critical.
The Telecel factor
Industry observers have noted the timing coincides with Telecel's active search for investors. The struggling mobile network operator has been on the market seeking fresh capital, and the 75% local ownership requirement would have severely narrowed the pool of potential international buyers or strategic partners. The reversal removes that obstacle and may signal the government's willingness to accommodate investment-friendly conditions for distressed operators.
Wider economic context
The policy reversal also comes as Zimbabwe is actively pursuing foreign direct investment while implementing its digital economy agenda. Authorities have repeatedly stated that expanding broadband connectivity, digital financial services, and ICT infrastructure is central to the country's goal of achieving upper-middle-income status.
Recent policy discussions led by the Ministry of Finance, Economic Development and Investment Promotion have stressed the need to mobilise private capital and improve the investment climate to finance economic growth. The now-repealed 75% ownership requirement directly contradicted those objectives.
What this means going forward
For existing telecom investors, the repeal provides immediate relief and removes the compliance burden that was set to begin. For potential investors, it signals — for now — that Zimbabwe remains open to foreign participation in its telecom sector.
However, the episode has also renewed debate over policy predictability in Zimbabwe. Economists have long argued that investor confidence depends heavily on stable and predictable regulations. A policy introduced, implemented, and reversed within three weeks does little to inspire confidence, even if the final outcome is favourable.
Frequent policy shifts increase perceived investment risk, particularly in capital-intensive sectors where infrastructure investments are recovered over many years. The reversal may be the right decision, but the process that led to it — gazetting without adequate consultation followed by a hasty retreat — raises questions about how Zimbabwe makes policy in its most strategic industries.
For the telecoms sector, this episode is a reminder that Zimbabwe's investment climate remains a work in progress, with progress in one policy area sometimes undermined by turbulence in another.
Photo by Chloe Evans on Unsplash
