Zim News Blog -NEWS NETWORK

Zvamaida Murwira

Senior Reporter

THE economy has remained resilient despite challenges such as illegal sanctions and climate change-induced natural disasters, as the Second Republic continues to focus on economic transformation and development, President Mnangagwa has said.

In his foreword to the Zanu PF Central Committee Report tabled and adopted at the 22nd Annual National People’s Conference in Mutare last week, the President, who is also the party’s First Secretary, said milestones have been registered in agriculture, infrastructure and various economic sectors, including introduction of the Zimbabwe Gold currency, which continues to hold steady against major units such as the United States dollar.

“In the face of challenges, such as illegal sanctions imposed on our country, climate change-induced natural disasters and global economic headwinds, our nation is demonstrating remarkable adaptation capacity and resilience,” he said.

“I therefore, applaud all Zimbabweans, including the security forces, for the prevailing peaceful, harmonious and tranquil environment.”

President Mnangagwa said the Government has registered significant progress on economic transformation and infrastructure development.

“Our focus has remained firmly on economic transformation and development. We have made significant strides in agriculture, ensuring national food security and sovereignty.

“This has resulted in record harvests through Pfumvudza/Intwasa Programme, massive irrigation development and enhanced agriculture mechanisation.

“Measures to grow our economy and stabilise our currency, underpinned by the introduction of the Zimbabwe Gold, are bearing positive results. This is being strengthened by our mineral wealth, as well as positive performance of the productive sectors.”

President Mnangagwa said various infrastructure projects, such as the Trabablas Interchange in Harare, have been completed, a demonstration that Zanu PF and the Government were determined to achieve economic progress.

“Infrastructure development and modernisation, empowerment of the youth and women, growth of small and medium enterprises as well as the pursuit of regional integration initiatives, are testament of our party and Government’s commitment towards economic progress,” he said.

“The completion of the Trabablas traffic interchange is not only for logistical convenience, easing the movement of goods and people, but also a symbol of what we, as Zimbabweans, can achieve in unity and with the use of our own local resources.”

The President said Zanu PF will continue to demand accountability from all tiers of the Government in order to uplift the lives of ordinary people.

“We have embarked on a deliberate campaign to improve service delivery by ministries, departments and agencies, including State-owned enterprises and local authorities.

“Our party and Government are holding everyone accountable. Citizens deserve clean water, efficient waste management, proper roads as well as health and education services.

“There is no room for dereliction of duty. Wherever it manifests, we shall continue to demand corrective action to ensure value for money in the interests of the generality of our people,” he said.

President Mnangagwa said it is his administration’s vision to become an empowered and prosperous upper-middle-income economy by 2030 through innovation, science, technology and skills development.

Zanu PF, he said, is also committed to curbing social ills such as drug and substance abuse that are threatening the national human capital base.

“We will continue to deploy multi-sectoral interventions, strengthen law enforcement, community awareness, rehabilitation, integration and empowerment programmes for our young people.

“This must see our country’s citizens, the youth and women, playing their rightful and appropriate role towards national development.”

President Mnangagwa called for sustained peace, unity and social cohesion and the rejection of all forms of division based on political, religious and tribal lines.

“Our engagement with an array of stakeholders across the socio-economic ecosystem, including faith institutions, has reaffirmed the utility of collaboration and partnerships as well as the indivisible bond between spiritual guidance and ongoing national development,” he said.

The 22nd Zanu PF National People’s Conference ran from October 13 to 18.

The official opening and closing ceremonies held last Friday and Saturday in Mutare attracted about 5 000 people.

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Rumbidzayi Zinyuke

Senior Reporter

PRESIDENT Mnangagwa is expected to headline this year’s SADC Anti-Sanctions Day commemorations set for October 25, with a national address that will underscore Zimbabwe’s resilience and progress under the continuing impact of Western-imposed sanctions.

The commemorations, to be held under the theme, “Inclusive Development through Heritage-Based Innovation and Industrialisation in a Multilateral World”, are part of a regional initiative adopted by the Southern African Development Community to call for the unconditional removal of sanctions imposed on Zimbabwe.

Information, Publicity and Broadcasting Services Minister Dr Jenfan Muswere announced this at yesterday’s post-Cabinet media briefing in Harare.

He said preparations for the day are well underway, with a series of activities planned across the country and beyond.

“The objectives of the Anti-Sanctions Day are to call for the unconditional removal of all the unjustified and illegal sanctions; to raise awareness of the negative impact of the illegal sanctions and celebrate the resilience of the people of Zimbabwe under the visionary leadership of His Excellency the President, Cde Dr ED Mnangagwa; and to reaffirm Zimbabwe’s appreciation for regional and international solidarity in the fight against unilateral coercive measures imposed on the country,” said Dr Muswere.

As part of the commemorations, President Mnangagwa is expected to deliver a national address, highlighting Government’s people-centred policies and the strides made in transforming the economy despite external pressures.

His message will also be shared by Zimbabwean embassies abroad, which will engage host governments and international partners in solidarity efforts.

The SADC Secretariat will also issue a regional statement in support of Zimbabwe, while the Ministry of Information, Publicity and Broadcasting Services will host an Anti-Sanctions solidarity event and gala at the Heritage Village in Harare, featuring top local artistes.

In addition, the Ministry of Women Affairs, Community, Small and Medium Enterprises Development is expected to release a documentary showcasing the achievements of Zimbabwe’s SMEs sector, a key pillar of inclusive economic growth.

The Ministry of Higher and Tertiary Education, Innovation, Science and Technology Development, through the University of Zimbabwe, will also host a public lecture and student-led panel discussions to promote dialogue and awareness among the youth.

The SADC Anti-Sanctions Day was declared in August 2019, following the 39th SADC Summit of Heads of State and Government held in Dar es Salaam, Tanzania.

The day, marked annually on October 25, is a demonstration of regional unity and solidarity with Zimbabwe against sanctions imposed by the United States, the European Union and their allies in the early 2000s.

SADC leaders have consistently argued that the sanctions are unjust, illegal and detrimental not only to Zimbabwe’s socio-economic development, but also to regional economic integration and cooperation.

Since the inception of the commemorations, member States have used October 25 to amplify calls for the lifting of the illegal sanctions, citing the progress Zimbabwe has made in governance, economic reforms and engagement with the international community.

This year’s commemorations come at a time when the country continues to advance its Heritage-Based Education 5.0 model, which promotes innovation and industrialisation grounded in local knowledge systems, an approach reflected in the 2025 theme.

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Business Reporter

THE International Monetary Fund has applauded Zimbabwe for adopting a prudent monetary policy that has seen Government maintaining tight fiscal discipline while containing inflation and stabilising the exchange rate.

IMF African Department director, Mr Abebe Aemro Selassie, told journalists during the presentation of the new regional economic outlook for sub-Saharan Africa at the IMF-World Bank Annual Spring Meetings in Washington DC, United States, this week that Zimbabwe’s policies have contributed to solid economic performance, even in the absence of the concessional financing that other countries in the region use.

He said the “diminished recourse” to the Reserve Bank of Zimbabwe financing window has been a key move of recent policy efforts now helping to achieve progress towards restoring macro-economic stability in an economy long plagued by hyperinflation and exchange rate volatility.

“Zimbabwe has gone through quite a lot of challenges in recent years . . . and one of the things that distinguishes Zimbabwe from other countries in the region has been that they have not been able to access concessional financing to the same degree that others have, helping defray the impact of all of these global shocks of recent years,” said Mr Selassie.

“Against this difficult backdrop, it has been good to see that . . . the country has been trying to put in place the right policies.

“Recourse to central bank financing has diminished quite a bit. It will be important to sustain that because it’s this repeated recourse to central bank financing that has created a lot of difficulties in the past, also with inflation, with exchange rate volatility and the difficult foreign exchange environment that the country has. So, we are encouraged by what the Government has been doing in recent months, and I think that needs to be sustained.”

Presenting his first Monetary Policy Statement on April 5, 2024, soon after he was appointed RBZ Governor early last year, Dr John Mushayavanhu pledged to stop quasi-fiscal activities at the central bank.

“I don’t believe in quasi-fiscal activities; it’s not going to happen under my watch. My mandate, as spelt out in the Reserve Bank Act, is very clear and I have no intention whatsoever to do other people’s jobs. In that respect, we have moved all quasi-fiscal obligations that had been created, some not of our making (as RBZ) . . . but that is in the past, we are not going to be doing any quasi-fiscal operations,” Dr Mushayavanhu said.

He emphasised that his mandate, as defined by the RBZ Act, was strictly monetary policy, and he had no intention of encroaching on the duties of other Government departments.

Essentially, he promised to stick to the central bank’s core job.

The central bank noted in its latest snapshot on monetary, currency, price and currency developments for the third quarter released last week that inflation was projected to remain low and stable, underpinned by a tight monetary policy. “The central bank is operating well within its inflation target, with annual inflation expected to be less than 20 percent by December 2020, which is aligned with the projected economic growth of 6 percent,” the RBZ said.

It said the ZiG monthly inflation had averaged 0,5 percent between February and September 2025 and is forecast below 3 percent for the rest of the year.

The exchange rate, the bank noted, as reflected by the interbank exchange rate, oscillated around ZiG26,76 per US dollar during the third quarter of 2025.

“The parallel market premium has also been declining towards convergence with the interbank rate, with the remaining gap being explained by the illegality premium and search costs associated with risks of obtaining foreign currency on informal channels,” the RBZ said.

In its recent Article IV consultation, the IMF Executive Board formally acknowledged that

the decisive halting of quasi-fiscal operations and monetary financing was the key development that has allowed Zimbabwe to achieve a degree of macroeconomic stability and lower inflation.

The halting of quasi-fiscal operations had been instrumental in supporting the stability of the Zimbabwe Gold (ZiG) currency.

Since its debut, the RBZ has actively worked to promote its use alongside the multi-currency system, and official data now indicates an increased proportion of transactions are being conducted in ZiG.

The ZiG is currently trading at approximately 26,71 per US dollar. It has maintained a relatively stable trajectory since the central bank devalued the currency by 43 percent on September 27, 2024.

The IMF noted that the economic outlook for Sub-Saharan Africa is showing resilience, despite a challenging external environment marked by uneven commodity prices, tight borrowing conditions, and a deteriorating global trade and aid landscape.

Regional economic growth is projected to remain steady at 4,1 percent in 2025 with a modest pickup in 2026, supported by macroeconomic stabilisation and reform efforts in key economies. The resilience, however, cannot be taken for granted.

Overlapping monetary, financial, external, and fiscal vulnerabilities persist across much of the region. To bolster macroeconomic stability while still funding essential development needs, the IMF urged countries to focus on domestic revenue mobilisation and strengthened debt management.

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Herald Reporter

A PROGRESS report on the implementation of the Zimbabwe Industrial Reconstruction and Growth Plan (2024–2025), which seeks to address challenges facing the manufacturing and commerce sectors, has been approved by Cabinet.

The plan aims to harness growth opportunities, reduce the import bill, enhance local production capacities and unlock export potential.

Under the plan, four key pillars were established: addressing commerce issues that support industrialisation, promoting growth of the manufacturing sector, implementing and monitoring the reconstruction and growth plan, and formulating the Zimbabwe National Industrial Development Policy.

Speaking after a Cabinet meeting in Harare yesterday, Information, Publicity and Broadcasting Services Minister Dr Jenfan Muswere said the plan had laid a strong foundation for the country’s industrialisation drive.

“The Zimbabwe Industrial Reconstruction and Growth Plan (October 2024- December 2025) is a bridging transitional framework between the expired Zimbabwe National Industrial Development Policy (2019-2023), and the upcoming new Zimbabwe National Industrial Development Policy (2026- 2030),” he said.

“The Zimbabwe Industrial Reconstruction and Growth Plan was crafted to address the immediate challenges facing the local manufacturing and commerce sectors.

“The plan also aimed at harnessing growth opportunities in order to reduce the import bill as well as enhancing local production capacities and unlocking export potential.”

Dr Muswere said 115 activities were set for implementation with overall execution of the plan now 70 percent complete.

Among the key achievements was the establishment of a National Command Centre for the Anti-Smuggling Task Force, which has so far conducted 3 970 inspections, secured 421 prosecutions and seized 4 831 goods.

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ZIMBABWE’S manufacturing sector is set to accelerate economic growth, after attracting over US$1,4 billion in new investments for expansions in 2025 alone.

Over the last few years, Zimbabwe’s economic growth has been driven by agriculture, mining and tourism, supplemented by a significant services sector led by wholesale and retail trade.

Construction has also contributed significantly to the economic growth in recent years through major Government and private investments in infrastructure, housing and public amenities.

But manufacturing has recently emerged as Zimbabwe’s top contributor to the gross domestic product, accounting for 15,3 percent in 2024.

It surpassed mining (14,5 percent), wholesale and retail trade (11,9 percent), financial services (10,8 percent) and agriculture (9,3 percent), according to the 2025 Mid-Term Budget Statement.

From steel and cement to pharmaceuticals and food processing, the wave of industrial activity signals renewed confidence in Zimbabwe’s economic reforms and the success of the country’s industrialisation agenda.

According to Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube: “These investments are driving structural transformation, import substitution and job creation as the nation accelerates towards Vision 2030.”

“We are witnessing unprecedented expansion across multiple value chains,” said Minister Ncube in a presentation at the Zanu-PF Annual People’s Conference in Mutare. “This growth reflects the resilience of Zimbabwean industry and the positive impact of policies implemented under the Second Republic.”

The resurgence in industrial activity has translated into stronger employment figures, with the manufacturing sector now accounting for seven percent of formal jobs, representing about 3,2 million people. Minister Ncube said this highlighted the tangible benefits of reindustrialisation efforts aimed at reviving domestic production and supporting livelihoods.

Economist Tinevimbo Shava said the trend confirmed that Zimbabwe’s economic transformation was not just theoretical, as it was translating into jobs, skills development and community empowerment. He noted that downstream employment in logistics, packaging and retail was also expanding as production ramps up.

“When manufacturing expands, it does not just create jobs in factories,” Mr Shava explained. “It stimulates entire ecosystems of service providers and suppliers, ensuring more inclusive economic participation.”

Zimbabwe’s factories are busier than they have been in years, with the Volume of Manufacturing Index (VMI) climbing from 46,6 percent in 2019 to 140,5 percent in 2024, showing cumulative growth of more than 200 percent.

For the final quarter of 2024, the VMI stood at 156,6, up 10,1 percent year-on-year, while average capacity utilisation has risen from 51 percent towards the end of 2024 to about 57,3 percent presently.

Minister Ncube said most firms were now operating at around 60 percent of capacity, an encouraging sign of industrial resilience.

Economist Gladys Shumbambiri-Mutsopotsi said the figures demonstrate that macroeconomic stability and policy consistency are beginning to bear fruit.

“The increase in capacity utilisation reflects improved access to raw materials, improved electricity supply and better credit availability,” she said. “If this momentum continues, Zimbabwe could re-emerge as a regional manufacturing hub within the next few years.”

The Government also launched the Industrial Development Fund (IDF) in the third quarter of this year, capitalised with ZiG100 million, to support high-growth firms in manufacturing, import substitution and export production.

The fund is managed by the Venture Capital Company under the Ministry of Industry and Commerce, and is expected to strengthen domestic value chains.

The industrial boom has been broad-based, with major progress across pharmaceuticals, steel, cement and fast-moving consumer goods (FMCGs), the Treasury boss said in his speech.

The number of local pharmaceutical manufacturers has grown from nine in 2020 to 14 in 2025, a 56 percent increase, backed by over US$70 million in new investments.

Exports have risen by 20 percent as local producers benefit from the Medicines Control Authority of Zimbabwe’s (MCAZ) attainment of World Health Organisation Level 3 certification, allowing them to compete in regional and global value chains.

The iron and steel industry now produces over 50,000 metric tonnes per month, employing more than 15,000 workers, up 11 percent from 2024. Dinson Iron and Steel Company, based in Manhize, has become a regional player, creating more than 2,000 jobs and supporting hundreds of small suppliers through its Local Development Enterprise.

“The steel industry is once again a pillar of our industrialisation,” Minister Ncube said. “It supports infrastructure development, agriculture, mining and transport, the backbone sectors of our economy.”

The cement sector is witnessing a construction boom with Huaxin Cement’s US$15 million new plant, a planned US$1 billion investment by WHI-ZIM in Magunje, and Shuntai Investments’ 800 000 metric tonne per year plant in Chegutu.

Zimsong Industry and Jianqiang Cement have also expanded production in Matabeleland and Mashonaland provinces, further boosting domestic capacity and reducing the import bill.

The FMCG sector has attracted significant capital inflows. Mega Market has invested US$25 million in a maize and wheat milling plant, National Foods injected US$22,7 million into a pasta and biscuit factory, while Nestlé Zimbabwe committed US$7 million to expand cereal production.

Beverage giant Varun Beverages is rolling out a US$285 million investment plan, including a snack plant to be completed by February 2026, a juice plant slated for July 2026, and a major beer brewing facility over the next 18 months.

Mr Shava said the investments showed confidence in domestic demand and Zimbabwe’s improving business climate. “Firms are retooling because they can see stability returning,” he said. “This is how economies move from consumption-based to production-led growth.”

Minister Ncube reaffirmed that industrial growth remains central to achieving Vision 2030, the national milestone for a prosperous and empowered upper middle-income economy.

“Industrialisation is at the heart of our economic transformation,” he said.
“We are focused on value addition, local production and export competitiveness to secure a sustainable future for our people.”

Ms Shumbambiri-Mutsopotsi added that the success of the manufacturing revival depends on continued policy discipline and infrastructure support.

“If Zimbabwe sustains power generation, improves logistics and maintains a stable currency, the next five years could mark a true industrial renaissance,” she said. – Herald

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