Online Reporter
Business Reporter
THE Confederation of Zimbabwe Industries (CZI) says 2025 was a good year for business, anchored by improved policy consistency, macroeconomic stability and increased confidence in the local currency.
CZI president Mr Mucha Mukanganwi told guests at the lobby group’s 2025 Annual Manufacturing Sector Survey Results presentation that demand for locally produced goods remains firm as companies benefit from improved economic conditions.
Mr Mukanganwi attributed the improved performance to a more supportive policy environment, stability in the ZiG currency framework, strong international gold prices and improved agricultural output.
Growth in key agricultural exports, particularly tobacco, supported industrial activity through increased demand for inputs and related products.
“The feedback we have received from business reflects a positive sentiment for 2025. Beyond the sentiments, our statistics are also showing that it has been a very good year for the industry.
“The policy environment has really improved, and businesses have been able to take advantage of that. The gold price cannot be ignored, and what has been happening in agriculture, especially with farmers performing well, has also translated into demand for industrial products,” said Mr Mukanganwi.
CZI reaffirmed its support for the Government’s approach to policy discipline and economic stability, saying the progress achieved since the introduction of ZiG had created a more predictable environment for businesses.
According to CZI’s 2025 Annual Manufacturing Sector Survey Results, economic stability has resulted in stronger industrial performance, with formal businesses employing at least 10 new workers and output growing by about 13 percent, the highest growth rate recorded in the survey since 2021.
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Turnover growth was about 12 percent, broadly reflecting higher production levels.
The survey also showed net employment creation of about 6 percent, with firms adding an average of five jobs each during the year.
CZI said maintaining this momentum would require continued efforts to strengthen macroeconomic stability, reduce barriers to business growth and improve the ease of doing business.
The organisation welcomed the Government’s efforts to reduce regulatory costs, saying lower compliance burdens would encourage formalisation, expand the tax base and ultimately increase revenue collection.
“Any losses to the fiscus from reducing regulatory costs will be more than compensated by growth in taxable income,” said Mr Mukanganwi.
However, Mr Mukanganwi warned that Zimbabwe’s economic transformation agenda remained incomplete, with the economy still heavily reliant on primary sectors such as mining and agriculture.
He said greater focus was needed on promoting value addition and developing industries that transform raw materials into higher-value products.
The survey showed that dependence on imported raw materials increased from 52 percent in 2024 to 55,9 percent in 2025, highlighting the need to accelerate the development of local value chains.
Meanwhile, industry continued to invest in capacity expansion, with 35 percent of surveyed firms investing in new capacity during the year, resulting in an additional 9 percent of production capacity.
CZI said 20 percent of manufacturing firms were recent entrants, reflecting renewed investor interest, although more incentives were needed to support existing local manufacturers.
The organisation said local companies continued to face an uneven playing field compared with new foreign investors, calling for policies that strengthen domestic industry competitiveness.
On exports, CZI noted that Zimbabwe’s export base remained dominated by mining and agriculture, with manufacturing yet to reach its full potential.
The organisation called for stronger incentives to promote industrial exports and enhance Zimbabwe’s competitiveness in regional and international markets.
CZI said continued engagement between business and Government would be critical in addressing structural challenges and creating conditions for sustainable industrial growth.
