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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