Harare, Zimbabwe — National laws aimed at redressing colonial imbalances reserve retail sectors, like that of brickmaking, for locals. But companies with outside investment, particularly from China, routinely flout the rules.
For nearly a decade, Stanley has made a living laying out bricks for drying at Willdale Bricks, one of Zimbabwe’s oldest brick manufacturers. That work paid his rent and kept his three children in school. But orders at the company have slowed and, like many other colleagues, he hasn’t seen a salary in two months.
“We used to be self-sufficient through our salaries,” says Stanley, who asked to use his middle name for fear of losing his job. “That stability is gone.”
Companies in Zimbabwe’s brickmaking sector are feeling the pressure from growing competition by foreign-backed companies expanding into the retail end of the industry.
Keep up with the latest headlines on WhatsApp | LinkedIn
By law, this shouldn’t be happening. The country’s Indigenization and Economic Empowerment Act reserves the retail sector and others — including wholesale trade, employment agencies and advertising — for its citizens. Foreign nationals require permission from the Ministry of Industry and Commerce to operate in these sectors.
Redressing colonial imbalances
The law, passed in 2007, is among policies pursued by the former President Robert Mugabe’s government to redress colonial imbalances that excluded Zimbabwe’s black majority from owning or meaningfully participating in key sectors of the economy.
But like the land reforms, which also meant to address these imbalances, the policy has long been controversial. Some say it has mostly created regulatory uncertainty, benefited those with close links to the state, and driven away much-needed foreign direct investment, among other concerns.
Since its introduction, the policy has undergone some changes under President Emmerson Mnangagwa’s administration to open up the economy for more investment. Through a 2018 Finance Act, the government revised the language and reserved these sectors to “Zimbabwean citizens” rather than “indigenous Zimbabweans” as the original policy stated. It also limited a 51% local ownership requirement to businesses that extract diamonds and platinum.
Critics say while well-intentioned, the policy is inconsistently applied. Some foreign firms sidestep the requirements with relative ease.
In the brickmaking sector, companies like Willdale Bricks — which once dominated the industry and employs hundreds — are being edged out by foreign-backed manufacturers that are extending into retail.
Global Press Journal directly contacted several companies registered with Zimbabwe Investment and Development Agency as brick manufacturers — including Tiger Bricks, Preedon Bricks and Obrim Bricks — all registered as foreign investments. Each confirmed they sell directly to customers.
When asked if the companies had the permission required, the Ministry of Industry and Commerce did not respond. Global Press Journal also requested information on special licenses issued in recent years but did not get any response by the time of publication.
However, an official in the department of economic empowerment at the ministry familiar with the matter, who did not want to be named for fear of losing his job, says that since he joined the ministry in 2019 it has not allowed any foreign companies to sell bricks. “If [foreign] companies are selling bricks either through retail or wholesale without such permission, it’s unlawful,” he says.
Such licenses usually last five years, he says, and if there are any companies that had these licenses before his arrival at the ministry, they would have lapsed by now.
Even if they have licenses, it’s still a problem, says Godfrey Kanyenze, founding director of the Labour and Economic Development Research Institute of Zimbabwe. Brickmaking, he says, is one of the clear areas that should be reserved for locals.
“There is no real point in having people come from far away to do what locals can do. Brickmaking is not a complicated economic activity that should require foreign direct investment,” Kanyenze says, adding that the country should seek foreign investment in more complex capital- and skill-intensive areas. “Our locals, even in the villages, make bricks.”
‘A double-edged sword’
The indigenization policy is increasingly tested as Zimbabwe, like many other countries in Africa, embraces Chinese investment. In 2023, the government issued about 369 new licenses to Chinese investors, accounting for 60% of all foreign investment that year and representing about 154% more investors than 2022.
While the capital that comes from foreign direct investment can be beneficial to the country, the cost is steep. “It’s a double-edged sword,” says Joe Muzurura, a political analyst who has written extensively about this issue in Zimbabwe. It’s eroding local industries, he says, citing the example of Willdale Bricks, which “is no longer the giant it used to be.”
If well regulated, foreign direct investment could support local players and help grow domestic industry, Muzurura says. Instead, he says, “it’s stifling [them].”
Already, local brick companies are under strain from the country’s worsening economic conditions. Willdale Bricks’ 2024 annual report shows that the company was struggling with liquidity constraints and high production costs. And a 15% value-added tax introduced in 2024 on the supply of bricks has pushed customers to cheaper, often non-compliant alternatives.
Beta Bricks, also a local brick manufacturing company and part of the Beta Holdings group, entered corporate rescue proceedings in January after defaulting on loans.
Both companies did not respond to Global Press Journal requests for interviews.
Obrim Brick Manufacturers is an investment company registered as a manufacturer and majority-owned by Chinese shareholders. Anesu Kondo, an accountant at Obrim, says their operations are fully compliant.
While Kondo says they do not have a special license from the ministry that would allow them to operate in retail, he says selling their product directly to customers should not be mistaken as retail trade. “We are not acting as middlemen. We are selling what we produce,” he says.
Foreign companies are only filling a gap left by struggling local companies, Kondo adds. “When we entered the market, the major players weren’t meeting demand. Local companies weren’t recapitalizing, and many still rely on outdated brickmaking technologies.”
Such interpretation is simply stretching the law, says Nyasha Brighton Munyuru, a managing partner at Muvingi and Mugadza Legal Practitioners, adding that the law is clear: Such a company needs permission from the ministry to operate in retail.
Strict rules and enforcement to match
The government has failed to implement the law, says Henry, a senior employee at Willdale Bricks who has worked at the company for nearly 25 years. He requested the use of his first name only, for fear of losing his job.
“Before a foreign business sets up its operations, there should be strict rules in place and enforcement to match. But that rarely happens,” he says, adding that some foreign companies operating in the country aren’t formally registered with authorities.
Generally, there is a double standard in how authorities implement regulations, he says. They allow foreign investors to evade taxes and regulations, while local businesses face intense scrutiny. “We’re expected to comply fully, bank all our earnings, and accept local currency that constantly loses value,” he says.
Foreign companies bypass the requirements that weigh down local producers, making it hard for locals to compete, Stanley says.
On top of that, the foreign companies have the added advantage of superior technology and greater production capacity, says Muzurura, the analyst.
Zimbabwe isn’t the only one grappling with the ripple effects of foreign investment on local businesses.
In Zambia, Chinese-owned enterprises dominate sectors such as mining and retail, often undercutting local entrepreneurs with lower prices, according to 2018 research by the International Institute for Environment and Development.
In Sri Lanka, according to a 2023 report by the International Collective in Support for Fishworkers, the Hambantota Port project, largely funded by Chinese investment, has strained local livelihoods. The project’s large-scale fishing operations have encroached on traditional fishing grounds, making access difficult for local fishermen.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
Success!
Almost finished…
We need to confirm your email address.
To complete the process, please follow the instructions in the email we just sent you.
Error!
There was a problem processing your submission. Please try again later.
And in Vietnam, while Chinese manufacturing companies in the textiles and electronics sectors have created jobs, they also have displaced small Vietnamese producers who struggle to compete with the Chinese firms’ lower prices and greater production capabilities, according to a 2017 report from the Harbin Engineering University’s School of Economics and Management.
In Zimbabwe, this shift happens at a time when the economy is fragile and unemployment is high — a dangerous mix.
As their salaries haven’t been guaranteed, both Stanley and Henry have had to find other means to subsist.
Henry takes on side jobs to make ends meet.
“In the past, working at Willdale was something to be proud of. Now, even informal vendors seem better off,” Henry says. “We are in a dire state.”
Linda Mujuru is a seasoned investigative journalist and Reporter-in-Residence at Global Press Journal based in Harare, Zimbabwe. With over a decade of experience, she specializes in uncovering the human impact of environmental degradation, economic instability, and public health crises.
Her acclaimed investigation, “Push for Gold Leaves a Toxic Legacy,” exposed the widespread use of mercury in Zimbabwe’s artisanal gold mining sector, highlighting severe health and environmental consequences. This impactful reporting earned her the 2023 Community Champion Award from the Institute for Nonprofit News.
Linda’s work extends to critical issues such as the effects of illegal plastic imports from China, the collapse of tuberculosis treatment programs amid foreign aid cuts, and the challenges faced by women in accessing maternal healthcare in underserved communities.
She holds a master’s degree in Media Studies from the National University of Science and Technology and previously served as the program manager at Media Centre Zimbabwe, supporting journalists nationwide. Today, she stands as one of Global Press Journal’s most widely read and syndicated reporters, renowned for her commitment to amplifying local voices and driving meaningful change through journalism.
