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Business Reporter
Business leaders have expressed strong support for the upcoming Zimbabwe National Industrial Development Policy 2 (ZNIDP2), which aims to stimulate economic growth from 2026 to 2030.
Building on the success of the National Development Strategy 1 (NDS1), which has surpassed some of the key targets, the new policy aims to expand industrialisation efforts and position Zimbabwe as a regional manufacturing hub.
Given the Government’s focus on private sector-led industrialisation, the business community is actively participating in the development of the ZNIDP 2 expected to be launched later this year.
“We are fully committed to providing substantive input for the policy,” said Mr Mike Kamungeremu, a Harare-based industrialist.
The launch of the ZNIDP 2, originally planned earlier, has been pushed back to November this year to allow for broader input.
The new policy replaces the previous five-year plan, which expired in 2023.
Its primary goal is to boost production by industrialising and modernising the manufacturing sector, attracting investment and increasing exports. The Government aims to create a policy that facilitates more projects, expands exports and builds on existing manufacturing sector gains.
Specifically, the policy targets an annual growth of over 3 percent in manufacturing industry projects, increasing manufacturing value added (MVA) to 20 percent of Gross Domestic Product, a 10 percent annual export increase, and raising manufacturing employment to 20 percent by 2030.
Confederation of Zimbabwe Industries (CZI) macroeconomic committee chairperson, Mr Jimmy Psillos told ZBC News recently that the new industrial policy should focus on practical, implementable measures that address industry challenges and foster growth.
”The focus should be on implementing effective measures that foster growth,” he said, while advocating for targeted solutions to industry challenges.
One of the key areas of focus for the ZNIDP 2 are tax incentives, which experts believe can accelerate industrial expansion.
Tax specialist Ms Susan Hamandishe emphasised the importance of effective implementation and well-structured support mechanisms for the incentives within the industrial policy to achieve sustained growth.
”Effective implementation of these incentives is crucial for facilitating sustained growth,” she said.
Zimbabwe’s manufacturing sector has seen a significant resurgence, with capacity utilisation doubling from 36,4 percent in 2020 to 66 percent in 2022.
This growth has led to locally produced goods capturing 80 percent of the market share, indicating a strong revival of domestic industry.
The achievements provide a solid base for the next phase of Zimbabwe’s economic transformation under the ZNIDP 2 and the NDS2. Building on the foundation laid by NDS1, the Government has since approved a roadmap for NDS2 (2026-2030), which prioritises industrial modernisation, innovation, climate change mitigation and inclusive economic growth.
With an emphasis on sustainable industrial growth, the ZNIDP 2 and NDS2 are expected to unlock new opportunities in manufacturing, agriculture and exports, ensuring that Zimbabwe strengthens its regional economic position.
Last year in October, the Government came up with the Zimbabwe Industrial Reconstruction and Growth Plan (ZIRGP) 2024-25, a transitional plan that seeks to address challenges affecting the manufacturing and commercial sectors while aligning with the tenets of the NDS1 as well as establishing a solid roadmap for the development of the NDS2 and ZNIDP2.
Online Reporter