HARARE — Zimbabwe’s manufacturing sector is showing renewed momentum, with rising industrial output and strong small-to-medium enterprise (SME) activity driving job creation and underpinning broader economic recovery, government officials have said.
The positive outlook comes ahead of International Workers’ Day commemorations, as authorities highlight employment gains linked to improved industrial performance.
Industry and Commerce Minister Mangaliso Ndlovu, according to State media, said increased capacity utilisation across factories is beginning to translate into tangible employment growth, particularly among young workers.
Capacity utilisation in the manufacturing sector rose to 57% in the first quarter of 2026, up from 47.7% during the same period last year, reflecting improved macroeconomic stability and rising investor confidence.
“While we are yet to fully quantify the number of jobs created, the recovery in industry has certainly generated significant employment opportunities, both in manufacturing and commerce,” Ndlovu said.
Labour-Intensive Sectors Lead Hiring
Growth has been especially pronounced in labour-intensive industries such as textiles, where companies are scaling up production and workforce capacity.
At the Zimbabwe International Trade Fair in Bulawayo, firms such as Paramount Garments were reported to be operating at close to 80% capacity, employing over 1,000 workers, many of them under the age of 30.
The government is now advancing targeted interventions under its forthcoming industrial policy framework, aimed at consolidating gains in sectors with competitive advantages and export potential.
SMEs Anchor Employment Growth
Parallel to large-scale industry, SMEs continue to play a dominant role in employment creation and economic activity. According to Women Affairs and SMEs Development Minister Monica Mutsvangwa, the sector contributes more than 67% to economic growth and accounts for over 70% of jobs nationwide.
Speaking at the Rural Industrialisation and Economic Empowerment Indaba held alongside the trade fair, Mutsvangwa emphasised the need for stronger integration between large corporations and smaller enterprises.
“Industrial growth must extend beyond major urban centres. Strategic linkages between big business and SMEs can unlock supply chain opportunities, skills transfer, and broader market access,” she said.
She added that outsourcing specialised functions—ranging from fabrication and packaging to logistics and maintenance—could accelerate job creation in rural and peri-urban areas.
Push to Formalise Informal Sector
Business leaders have identified formalisation as a key step toward improving job quality and expanding the tax base. Small to Medium Enterprises Association of Zimbabwe chief executive Farai Mutambanengwe said a more supportive regulatory environment is essential.
“What is critical is creating conditions that encourage businesses to formalise. That is when we begin to see more stable and decent employment being generated,” he noted.
To that end, the government has introduced the National Formalisation Strategy alongside the National Employment Policy (2026–2030), both aimed at integrating informal enterprises into the mainstream economy.
Deputy Chief Secretary George Charamba argued that informality should not be viewed as a structural weakness but rather as a common feature of modern economies.
“The issue is not the existence of the informal sector, but how effectively it is integrated into the broader economic system,” he said, calling for innovative taxation and regulatory frameworks tailored to informal business models.
Outlook
As Zimbabwe positions manufacturing and SMEs at the centre of its economic agenda, policymakers are increasingly focused on building inclusive growth models that combine industrial expansion with widespread employment creation.
With industrial output rising and policy reforms taking shape, the country’s near-term economic trajectory will likely depend on sustaining productivity gains, deepening value chains, and formalising a large but dynamic informal sector.
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