Online Reporter
Nelson Gahadza
ZIMBABWE can ramp up domestic production and slash imports through the right policy support, affordable long-term financing and strategic Government procurement, manufacturers and agri-processors say.
Zimbabwe’s total imports for 2025 were approximately US$9,63 billion.
Mineral fuels and oils; machinery; mechanical appliances; electrical equipment; vehicles; and cereals, specifically maize and wheat; were the leading imports.
The country’s trade balance showed significant volatility throughout the year.
Zimbabwe’s trade balance saw a significant improvement in 2025, with the annual trade deficit narrowing by approximately 77,5 percent to US$404 million, down from the US$1,79 billion deficit recorded in 2024.
Through the Local Content Strategy (2026-2035), the Government aims to transform the economy by increasing local content and industrial capacity utilisation to an average of 75 percent by 2033.
This goal will be pursued through mandatory local content thresholds in key sectors, designed to accelerate industrialisation.
The strategy, aligned with the National Development Strategy 2 (NDS2), prioritises the sourcing and usage of local raw materials, while encouraging greater participation from Zimbabwean enterprises in economic growth.
Presentations made during a local content thresholds validation workshop in Harare on Thursday revealed that while several sub-sectors still rely heavily on imported raw materials, industry players are already mapping out long-term localisation strategies to boost domestic value addition and job creation.
Representatives from the textiles, edible oils and detergents sub-sectors said Zimbabwe possesses the productive base and technical expertise needed to gradually increase local content thresholds over the next decade.
A common proposal from stakeholders was for the Government — the largest buyer in the economy — to prioritise procurement from companies meeting these prescribed thresholds.
Textiles and clothing
Competition and Tariff Commission spokesperson Mr Prosper Ziyadhuma presented survey findings from the textiles and clothing sub-sector.
He said the textile industry already maintains high local content levels in cotton-based manufacturing due to domestic cotton availability.
“Most local fabric production focuses on cotton, where the local content threshold is high, estimated at around 70 percent,” he said, adding that some locally manufactured fabrics average 80 percent local input use.
However, the clothing sector is currently adapting to a shift in consumer preference towards polycotton and synthetic blends.
“Currently, Zimbabwe does not produce polyester, so manufacturers must import it,” Mr Ziyadhuma explained.
“While companies are investing in machinery for polycotton fabrics, polyester yarn remains an import dependency,” he said.
Affordable long-term financing and stronger linkages between cotton producers (such as Cottco) and manufacturers, Mr Ziyadhuma said, are essential to ensure predictable access to affordable raw materials.
The edible oils sub-sector outlined ambitious plans to increase domestic production and reduce reliance on imported crude oil.
Cotton Pro Company managing director Mr Tararama Gutu said the sector was targeting an increase in the local content threshold from the current 10 percent to 80 percent by 2033.
He highlighted that Zimbabwe has the fundamentals for self-sufficiency, including four million hectares of arable land and adequate water bodies.
However, he warned that the value chain has weakened as processors shift towards importing crude oil for refining rather than supporting local crushing industries.
“Processors are bypassing the crushing stage and simply importing crude oil. This means farmers no longer have a reliable market, causing production to decline,” Mr Gutu
said.
The 10-year road map seeks to rebuild agricultural production and harmonise conflicting statutory instruments to restore investor confidence.
The soaps and detergents sub-sector also sees significant opportunities for import substitution.
Making another presentation, Competition and Tariff Commission official Mr Tatenda Mapuranga said Zimbabwe spent substantial foreign currency on finished soaps despite local potential.
“A mandatory threshold requires addressing supply chain gaps. Currently, Zimbabwe has limited chemical plants producing the necessary raw materials,” Mr Mapuranga said.
He urged the Government to support innovation hubs for raw material development, while intensifying anti-smuggling measures to protect local manufacturers.
Local Content Threshold Committee chairperson Professor Gift Mugano said the proposed thresholds were designed to build a self-reliant economy capable of withstanding global shocks.
“We need to build resilience and avoid relying on external supplies for food and clothing when we can produce them locally,” Prof Mugano said.
He noted that recent global disruptions, such as the conflict in Ukraine, have highlighted the danger of over-reliance on imports.
Prof Mugano said the proposed thresholds were informed by extensive consultations and research involving industry stakeholders across sectors.
“The presenters here were representing their sectors and what is critical for the committee is to ensure there is proper research before thresholds are declared,” he said.
Prof Mugano said the localisation framework was intended to provide practical and measurable pathways for gradual industrial growth.
“With thresholds, we know why we are at 70 percent in a sector such as textiles,” he said.
“We also know what needs to be done to sustain that 70 percent and what needs to be done to move from 70 percent to 73 percent over the next five years.”
He said the committee’s role was to guide policy development, while ensuring broad stakeholder participation in shaping localisation targets.
“Our view as a committee is to inform policy and guide stakeholder consultation because the committee is not made up of the ministry alone, but stakeholders from industry,” he said.
Prof Mugano said the Government was developing an artificial intelligence-driven online platform to monitor compliance levels across industries and improve transparency.
“There is already work being done on creating an online artificial intelligence sector-specific threshold system where companies will report and be able to see whether they are at 70 percent or 80 percent,” he said.
“It will be linked to ZIMRA (Zimbabwe Revenue Authority) and NSSA (National Social Security Authority) so that there is evidence to support what companies declare.”
The localisation efforts, Prof Mugano said, would focus not only on increasing domestic production, but also improving quality, competitiveness and export capacity.
“This is not a game of just supporting local production without quality,” he said.
“The best way to promote local content is through exports. That means we must be competitive in terms of quality, cost and production volumes.”
Prof Mugano stressed that Zimbabwean products must compete on merit and meet global market standards.
The validation workshop brought together policymakers, industry representatives and sector experts to review proposed localisation thresholds expected to form part of Zimbabwe’s broader industrial policy framework aimed at stimulating manufacturing
growth, employment creation and economic resilience.
