Online Reporter
Sikhulekelani Moyo, Zimpapers Business Hub
THE Confederation of Zimbabwe Industries (CZI) has appealed to the Government to establish a funding facility for export-oriented manufacturers to unlock growth, create new jobs and spur industrial recovery and growth.
This was said in recent submissions made by CZI to the Government for incorporation in policy initiatives, highlighting high-impact areas that require collaboration to strengthen the business environment.
The manufacturing sector is now Zimbabwe’s biggest contributor to gross domestic product, accounting for 15,3 percent in 2024, a significant increase from previous years.
This surge has pushed it past the wholesale and retail trade sector, which previously held the top spot.
CZI, the country’s biggest and most influential business lobby, said it acknowledged and highly commended the ongoing progress in regulatory reforms to improve the business environment.
“Zimbabwe’s horticulture sector has benefitted from a successful export funding model, which has unlocked significant growth. A similar mechanism should be extended to export-oriented manufacturing, where access to affordable and dedicated financing remains a major bottleneck,” reads the submissions from CZI.
“CZI emphasises that manufacturing, given its central role in job creation, industrial upgrading, and export diversification, deserves comparable funding support.
“Strategic policy interventions to unlock financing for manufacturing exporters will enhance competitiveness, deepen regional integration, and strengthen Zimbabwe’s position in global value chains.”
Economic experts continue to call for financial support for the manufacturing sector, as this is critical for the Government to support the sector, as it has the potential to create employment and generate revenue for the economy.
The manufacturing sector has the potential to industrialise the nation, taking advantage of the availability of resources, which can be value-added into different products for the export market.
Being an agro-based economy, with mining also contributing much to the country’s gross domestic product, the manufacturing sector can benefit from the minerals the country has and value-added agricultural produce to promote industrial growth.
However, CZI is calling for strategic intervention by the Government in different areas that include policy frameworks and financial support, among other things.
The submissions by CZI identified key policy areas for further attention, including industrial policy validation, clearance of Government arrears, liquidity accommodation, regulatory reform, currency policy, value chain transformation, foreign currency retention, VAT treatment, sugar surtax, IMTT, and the CBCA programme, together with practical proposals for consideration.
“We commend the Government of Zimbabwe for the current regulatory reform agenda that is underway. Zimbabwe requires bold and accelerated reforms, including systematic deregulation inspired by Argentina’s President Milei’s ‘one deregulation per day model’ maybe in Zimbabwe, it could be one deregulation per week,” said CZI.
“A sustained rallying call to action from the Head of State will assist in accelerating the pace of the reforms and maintain momentum in the face of the imminent AfCFTA and current competitiveness pressures.”
In a demonstration of the Government’s sensitivity to calls for regulatory reforms, Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube recently said the Government was embarking on a regulatory review process with the agricultural sector as its starting point.
The process entails reducing the burden of levies, licences, fees and permits to ease the business environment.
This effort, announced in the 2025 MidTerm Budget Review, also involves benchmarking regulations against regional best practices to boost formalisation, tax compliance, and cost reduction within the informal sector.
This comes after President Mnangagwa, in February 2025, during his first Cabinet meeting of the year, called for a comprehensive review of regulations to reduce the cost and bureaucracy of doing business in Zimbabwe.
He emphasised that unnecessary fees, licences and permits should not hinder economic growth.
The lobby group also said there was an urgent need for structured dialogue between the Government and the private sector to address outstanding domestic debt owed by the Government.
CZI said the scale of arrears is significant, with some debts posing existential risks to companies.
Arrears clearance and debt resolution rank among critical issues Zimbabwe should address to guarantee sustained economic growth, according to the World Bank.
Full resolution of the issue would not only drive growth but also help create an environment attractive to investors, the multilateral lender said.
On currency policy and confidence building, CZI said there was an urgent need for the Reserve Bank of Zimbabwe (RBZ) to formalise and legalise its proclamations on what will not happen due to de-dollarisation to strengthen business confidence.
Key commitments that require legal backing, as mentioned by CZI, include protection of USD-denominated obligations, preservation of US dollar balances and guarantees of monetary stability.
