Stephen T Chifamba
Zimbabwe’s manufacturing sector is in crisis, with nearly half its industrial capacity lying idle and only 5% of goods making it to export markets, but a growing coalition of local industry champions, economists, and government officials is pushing for a game-changing solution: strategic local procurement.
At the recent launch of the Confederation of Zimbabwe Industries (CZI) 2024 Manufacturing Sector Survey, Buy Zimbabwe general manager Alois Burutsa said government must step up and prioritise local goods in public procurement.
“Local goods now make up about 70% of supermarket products. But sub-sectors like bus manufacturing still have massive idle capacity. Government should lead the way by sourcing from local producers,” said Burutsa.
The CZI report paints a stark picture: capacity utilisation declined to 52.3% in 2024, with outdated machinery, high costs, and limited forex access holding back growth.
Burutsa argues that using public procurement to stimulate demand would reduce reliance on imports and empower local industries to scale and modernise.
Finance Minister Prof. Mthuli Ncube confirmed that ministries and agencies will prioritise local suppliers as part of the Zimbabwe Industrial Reconstruction and Growth Plan (ZIRGP).
“This approach will stimulate domestic production and ensure industrial growth is more inclusive,” he said.
Dr. Thomas Utete Wushe, Permanent Secretary in the Ministry of Industry and Commerce, echoed the commitment but emphasised gradual implementation.
“We can’t build capacity overnight. If we order 30 buses, local firms may need five years to deliver. But we are committed to working with the private sector to scale up,” he said.
Industrial policy analyst Rufaro Mlambo recommends creating strategic industrial zones with shared infrastructure.
She said, “Clusters lower production costs, encourage innovation, and make Zimbabwe more attractive to investors. This model is gaining traction across Africa.”
Bheki Sibanda, CEO of a mid-sized agro-processing firm, called for targeted financial support, “Most equipment is outdated. We need low-interest loans or grants to retool. Without this, we can’t compete regionally.”
Economist and AfCFTA advisor Dr. Nomathemba Zulu warned of missed opportunities, “Only 5% of our goods are exported. We must cut red tape, simplify customs, and invest in export readiness to benefit from AfCFTA.”
The ZIRGP, running until December 2025, outlines key reforms across manufacturing, infrastructure, and investment attraction. A Local Content Steering Committee has also been established to ensure implementation.
Despite aging infrastructure, 30% of factories are over 20 years old newer facilities have shown promise. These success stories, experts argue, are proof that the sector can be revived with the right mix of policy, investment, and collaboration.
Zimbabwe’s manufacturing woes won’t disappear overnight. But with a firm public procurement policy, patient capital, and export-oriented reforms, the country can move from industrial stagnation to sustainable reindustrialisation.
As the government’s largest buyer, the state holds the key to unlocking industrial growth. If it buys local, strategically and consistently it may just lay the foundation for Zimbabwe’s manufacturing comeback.
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