Online Reporter
Raymond Jaravaza, [email protected]
BULAWAYO province ranks highest in the country in terms of the number of formalised businesses with 15 840 establishments operating, thereby positioning the city for vibrant industrial regeneration and broad-based economic empowerment, official statistics show.
The high proportion of formal businesses in Bulawayo serves as the bedrock of a stable, predictable economic environment that fosters greater tax compliance, according to a study paper presented by the Economic Growth and Stability Thematic Working Group during the Bulawayo Provincial Development Committee meeting held yesterday.
The study findings on formalisation are based on the Zimbabwe National Statistics Agency (Zimstats) report, and suggest that at 40,4 percent of formally registered businesses, Bulawayo surpasses the national average that stands at 23,9 percent and is also above Harare, which is at 23,8 percent.
The official statistics further indicate that a larger portion of the workforce in Bulawayo is engaged in formal employment, which typically offers better working conditions and social security benefits.
The report was presented to the Minister of State for Bulawayo Provincial Affairs and Devolution, Judith Ncube, who was the guest of honour at the Bulawayo Provincial Development Committee meeting that was attended by various stakeholders from Government departments, business and civic society.
“The high proportion of formal businesses in Bulawayo is most significant yet often an undervalued asset. This is not merely a statistical anomaly but a reflection of a fundamentally different and more resilient institutional and business culture in the province,” reads the study paper.
“A higher formalisation rate implies a stronger tax base, reliable data for economic planning and a more predictable environment for domestic and foreign investment.
“The high national unemployment rate can be viewed as an opportunity for action and Bulawayo with its existing formal foundation, is the ideal pilot for a national formalisation strategy.”
By leading a policy of actively transitioning the informal economy into the formal sector, the findings show that Bulawayo can directly address the NDS1 (National Development Strategy 1) goal of broad-based economic empowerment, creating more decent work and expanding the national tax net.
Zimbabwe’s national unemployment rate, which stood at 21,8 percent as of the end of 2024, underscores the urgency of job creation.
“Within this context Bulawayo presents a unique case study and a national competitive advantage. The Zimstats Economic Census, conducted from June 2024 to March 2025 with a reference period of 2023, revealed a significant structural difference in Bulawayo’s economy,” reads the paper.
Commenting, Permanent Secretary in Minister Ncube’s Office, Mr Paul Nyoni, called upon public and private sector players to work hard for the improvement of the lives of Bulawayo residents.
“As we reflect on the success stories and areas where we need to improve, I call upon each and everyone in this room to have the common goal of improving the lives of the people of Bulawayo,” he said.
Despite the historical challenges of de-industrialisation in Bulawayo, the meeting was informed that the highest proportion of formal businesses in the country position Bulawayo province as a strategic national leader.
“Bulawayo Province’s economic performance in the second half of 2025 presents a compelling case for a targeted, evidence-based strategy to drive industrial regeneration and broad-based economic empowerment,” reads the paper.
“The analysis indicates that while the province continues to grapple with the historical challenges of de-industrialisation, its foundational strengths — notably the highest proportion of formal businesses in the country — position it as a strategic national leader in the final year of NDS1,”
The study findings come at a time when Bulawayo province is making strides in retooling and reviving its industries riding on the close collaboration between the Government and the private sector.
This has seen the successful private sector investments such as the US$8 million state-of-the-art plant by Profeeds Private Limited, upgrading and transformation of several firms such as Baker’s Inn, United Refineries, Treger Group of Companies, Datlabs and National Foods among others.
“The Bulawayo economy is not solely reliant on the revival of its legacy industries as the city is actively diversifying its economic base by focusing on new and emerging sectors that are critical for sustainable modern growth,” reads the report.
However, decades of economic downturn have left the province with abundant but under-utilised infrastructure which, the meeting was told, presents both a challenge and an opportunity for re-industrialisation.
“The economic trajectory of Bulawayo Province is a strategic consideration that extends beyond its provincial borders. Its revival is a national imperative, inextricably linked to the successful attainment of NDS1,” reads the report.
The presentation noted that a core pillar of Vision 2030 is the devolution of power to lower tiers of Government to enable faster and more effective public service delivery and development.
“Bulawayo’s historical legacy as the country’s manufacturing and railway hub, coupled with its excellent ecological endowments and skilled workforce, provides a unique foundation for this devolution agenda,” reads the report.
derick.khumalo