Rutendo Nyeve,Victoria Falls Reporter
The manufacturing and mining sectors have expressed optimism about the general business climate in the second quarter of 2025, according to the latest Business Tendency Survey (BTS) report released by the Zimbabwe National Statistics Agency (ZimStat).
The improved sentiment comes against the backdrop of rising capacity utilisation in both sectors, signalling a potential recovery in key areas of the economy.
The report, which gathered views from 396 manufacturing and 91 mining companies, indicates that capacity utilisation in the manufacturing sector rose to 48.2 percent in the second quarter, up from 47.7 percent in the first quarter. Large manufacturing companies recorded a more significant improvement, with capacity utilisation increasing from 53.2 percent to 57.3 percent.
The mining sector also saw a modest gain, moving from 55.4 percent to 56.0 percent.
This uptick in operational capacity has been accompanied by a notable rise in business confidence.
“The Manufacturing Confidence Index increased by 3.8 points from 3.2 in the first quarter to 7.0 in the second quarter,” reads the report.
Even more striking, the Mining Confidence Index surged by 13.2 points — from -0.4 to 12.8 — over the same period. A positive confidence index reflects optimism about future business conditions.
“Twenty-five point three percent of the respondents in the manufacturing sector expressed more optimism towards the general business climate in the second quarter of 2025. A similar sentiment was recorded in mining, where about 25 percent of respondents expressed the same sentiments,” reads the report.
According to the report, the overall balance of opinion for the general business climate — calculated as the difference between positive and negative responses — stood at 9.8 percentage points for manufacturing and 16.5 for mining.
In terms of production, the outlook for the third quarter is also positive.
“About 38 percent of respondents in the manufacturing sector anticipated an increase in production levels during the third quarter of 2025,” reads the report.
In the mining sector, the expectation was even stronger, with 48.4 percent of respondents forecasting higher production.
The Purchasing Managers’ Index (PMI) for manufacturing, a key indicator of sectoral health, also improved — rising by 5.5 points to 40.0 in the second quarter. Although still below the 50-point threshold that separates expansion from contraction, the increase suggests a moderating pace of decline.
Despite these positive strides, the sectors continue to face significant challenges.
“There are three major constraints to production: cash flow difficulties, shortage of electricity, and uncertainty of the economic environment,” reads the report.
Nevertheless, the overall tone of the report is one of cautious optimism. The combination of improved capacity utilisation, rising confidence and positive production expectations points to a gradual strengthening of Zimbabwe’s manufacturing and mining sectors as the year progresses.
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