Harare, Zimbabwe (News of The South) Addressing delegates at the launch of the Confederation of Zimbabwe Industries (CZI) Manufacturing Sector Survey 2024 Report, Industry and Commerce Permanent Secretary Dr Thomas Utete Wushe, speaking on behalf of Minister, Mangaliso Ndlovu, described the sector as a critical driver of job creation and a key pillar in the nation’s march toward Vision 2030.
Held under the theme “Two sides of the Same Coin: Low-Capacity Utilisation and Excess Idle Capacity,” the CZI report painted a mixed picture of modest sectoral contraction balanced by pockets of high performance, rising manufactured exports, and encouraging employment trends.
“Despite the challenges, new permanent jobs constituted about 14 percent of total employment in 2024,” Dr Wushe said. “This is a testament to the sector’s ongoing ability to absorb labour, even as casualization rates have risen to 30 percent.”
Newer firms, particularly those established within the last five years, were notable standouts, recording a 14 percent increase in output. Large firms also grew output by 8 percent, while the sector as a whole declined by just 0.5 percent, a performance Dr Wushe described as proof of industrial resilience.
This progress has been made against the backdrop of macroeconomic volatility and an evolving monetary landscape.
The launch of the new local currency, ZiG, in April 2024 brought temporary stabilisation, though inflation spiked to 37,2 percent by October before subsiding to 3,7 percent by December. Still, annual USD inflation averaged only 2,7 percent in 2024, down significantly from 8 percent in 2023.
“A big thumbs up to fiscal and monetary authorities for the relative stability we have been experiencing over the past months,” Dr. Wushe said. “This stability created a more predictable environment for manufacturers, allowing them to plan and execute growth strategies effectively.”
Export performance emerged as another bright spot. Manufactured exports surged from US$324,8 million in 2021 to US$448,7 million in 2023, before registering US$432 million in 2024, evidence of rising competitiveness in the face of global headwinds.
“Government intends to encourage firms to explore export markets, reducing dependence on local demand and better utilizing their production capacity,” Dr Wushe stated.
However, he acknowledged that only 5 percent of total output was exported in 2024 and just 29 percent of manufacturers felt prepared to compete in the African Continental Free Trade Area (AfCFTA), underlining the need for targeted support.
To bridge this gap, government is implementing the Zimbabwe Industrial Reconstruction and Growth Plan (ZIRGP), a transitional framework running through December 2025 that emphasises retooling, financing, infrastructure improvement, and value chain integration.
Dr Wushe explained, “The plan focuses on boosting local production, attracting foreign investment, and enhancing efficiency across critical sectors.” Under ZIRGP, the Ministry has facilitated industrial linkages with agriculture, mining, tourism, and MSMEs, especially in dairy, sugar, pharmaceuticals, and iron and steel.
“Local dairy output is on the increase and the coming in of local production of iron and steel has resulted in the supply of about 10 percent to local production,” he added.
The food and drink sector, through Ministry-led optimization efforts, has also stabilized supply of basic commodities on local shelves.
A robust crackdown on smuggling and business malpractices has reinforced these gains. Government inspections across provinces reached 1 907 in 2024, leading to 137 prosecutions and 3 987 product unit seizures.
“This has witnessed improvements in sales and shelf occupancy of locally produced goods,” said Dr. Wushe.
Looking ahead, the government is preparing to launch the Industrial Development Fund, which will support retooling and modernisation efforts, particularly in sectors flagged for strategic growth. The initiative will complement broader efforts to reduce utility costs and improve access to affordable financing.
Further reforms are on the horizon.
“Government is currently ceased with Ease of Doing Business issues through the Whole-of-Stakeholders Approach,” said Dr. Wushe, referencing an ambitious plan to streamline regulatory compliance and remove investment bottlenecks.
These efforts will be institutionalised under the forthcoming Zimbabwe National Industrial Development Policy 2 (ZNIDP 2), set to build on ZIRGP’s foundation and align with the broader National Development Strategy 2 (NDS2).
Despite the hurdles, chiefly high production costs, currency fluctuations, and aging machinery, the outlook remains cautiously optimistic. According to the CZI survey, 44 percent of manufacturers expect better performance in 2025, with the pharmaceuticals, beverages, and furniture subsectors anticipating the strongest growth.
“There is no doubt that our discussions today will feed into the development of industrial policy,” Dr. Wushe concluded.
“We must prioritise key policy interventions aimed at enhancing our manufacturing sector. Addressing high compliance costs, improving access to financing for retooling, and stabilizing the macroeconomic environment are critical steps toward fostering a more resilient industrial landscape.”
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