Online Reporter
Martin Kadzere
ZIMBABWE has identified agro-processing and mineral beneficiation as the primary drivers for economic transformation under the country’s new five-year economic blueprint, the National Development Strategy 2 (NDS2).
To accelerate industrialisation, the Government will prioritise value chains that demonstrate strong potential for integrating both upstream and downstream activities.
This strategic focus aims to shift the economy from exporting raw materials to trading high-value manufacturing, anchoring the country’s development goals for 2026–2030.
“Mass production, processing and local consumption of our own goods are the true drivers of industrialisation. This cycle creates jobs, fuels import substitution and ultimately transforms Zimbabwe into a competitive exporter,” says economic analyst Mr Tobias Musara.
A primary focus is the fertiliser industry, where the Government aims to cut a US$2 billion import bill by reviving local industrial entities like Chemplex Corporation, Sable Chemicals and Dorowa Minerals.
Other major projects, including the Shawa Hills phosphate plant and the Mkwasine coal-to-fertiliser plant, are expected to produce millions of tonnes of basal and top-dressing fertilisers annually, making the country a key regional exporter.
In the tobacco and cotton sectors, the shift is equally aggressive.
The “cotton-to-clothing” strategy aims to increase local lint processing from under 20 percent to 60 percent by 2030, supported by a ban on second-hand clothing and a mandate that 30 percent of all lint remains for local spinners.
In a bold move to protect the domestic industry, Treasury has introduced a 300 percent tariff on selected textile imports in the 2026 National Budget.
The measure is specifically designed to support massive new investments in the sector, most notably the US$35 million revival of David Whitehead Textiles.
The tariff aims to create a competitive breathing room for local manufacturers as they retool and scale production to meet national demand.
“The duties we have imposed … we are being driven by the need to support local production and local investments,” Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube said during a post-Budget breakfast meeting in Harare.
“This is an incentive to invest locally and create jobs. It is not an incentive to punish (other players) or anything like that. There is a need to drive domestic investment.”
And, as the world’s sixth-largest tobacco producer, Zimbabwe intends to transition from raw leaf exports to cigarette manufacturing and nicotine extraction to raise local value addition from a mere 2 percent to over 30 percent.
The mining sector is also undergoing a structural shift to ensure mineral wealth stays within the country.
Under NDS2, the Government will ban the export of all lithium concentrates by January 2027, mandating miners to process ore into high-value lithium salts like carbonate and hydroxide for the global battery market.
This aligns with the “iron and steel” agenda anchored by the DISCO plant in Manhize, which aims to create a vertically integrated industry producing stainless steel and industrial bolts for local and regional construction.
Platinum group metals (PGMs) are also in the spotlight, as producers will now be required to move beyond matte production to isolate individual metals such as platinum, palladium and rhodium locally.
This is designed to curtail the “mine-to-port” strategy and force industrialisation through local refineries and foundries.
To ensure national health and economic security, Zimbabwe is targeting self-sufficiency in pharmaceuticals and vehicle assembly.
The National Pharmaceutical Manufacturing Strategy aims to produce 60 percent of essential medicines locally by 2030, supported by a new Pharmaceutical Revolving Fund.
Meanwhile, the motor vehicle industry is being revitalised, with a target to assemble 10 000 units annually, shifting the focus towards electric vehicles and local component manufacturing to substitute expensive imports.
The leather and timber industries are being retooled to move from exporting raw hides and logs to producing high-quality footwear and industrial wood products, respectively.
Speaking during the National Competitiveness Commission (NCC) annual general meeting recently, chairperson of the Parliamentary Portfolio Committee on Industry and Commerce Mr Clemence Chiduwa said developing integrated value chains was an integral pillar to anchor the country’s industrialisation and job creation agenda.
He also said a rigorous focus on the ease of doing business was critical to ensuring local products remain competitive.
This, he argued, was essential to curbing the influx of foreign goods, especially as Zimbabwe has ratified various regional trade agreements that open the domestic market to competition.
“We have got the African Continental Free Trade area that is coming, and at the moment, I don’t think we are ready for it,” said Mr Chiduwa.
“But we have time (to prepare otherwise); we are not going to be just spectators. So, (the) NCC has a serious role to play to make sure that our industries, the value chains, remain active.”
According to the NDS2, the interventions for economic structural transformation through investment across value chains for sustainable inclusive growth aim for the attainment of overall annual average real economic growth rates in excess of 5 percent.
This is projected to yield Gross National Income per capita of over US$4 000 by 2028, rising to an estimated US$4 900 by 2030.
