Online Reporter
Nelson Gahadza
Senior Business Reporter
Zimbabwe’s industrial sector is showing early signs of resilience and recovery in 2026, supported by improving macroeconomic stability, responsive policy adjustments and a renewed focus on production and value addition, the Confederation of Zimbabwe Industries has said.
In its first quarter 2026 industry newsletter, the CZI said the economic environment has been more stable compared to previous periods, highlighting single-digit inflation as a key development that is restoring predictability for businesses and strengthening planning across sectors.
Driven by the new Zimbabwe Gold (ZiG) currency and strict monetary policy, annual inflation was 4,1 percent in January, 3,8 percent in February, and slightly up to 4,4 percent in March.
“The return to low and stable inflation marks an important shift for industry, which has long struggled with volatility that distorted pricing, disrupted investment decisions and undermined long-term planning.
“With inflation now contained, firms are better positioned to structure production cycles, manage costs and pursue growth strategies with greater confidence,” the CZI said in the newsletter.
It added that macroeconomic stability is being reinforced by ongoing policy refinements, with the Government demonstrating responsiveness to industry concerns.
“During the quarter, several proposed tax measures were reviewed following engagement with business, including the repeal of the cash withdrawal levy and adjustments to gold royalties and tax clearance requirements.
“These interventions are expected to ease compliance pressures and improve the operating environment for companies,” said the CZI.
At the same time, the industry lobby and representative body said efforts to reduce the cost of doing business are gaining traction, with planned reductions in licence fees and vehicle registration charges set to lower regulatory costs once fully implemented.
It noted that such measures are part of a broader policy direction aimed at enhancing competitiveness and supporting industrial growth.
The CZI indicated that the evolving policy environment is creating a more constructive interface between Government and industry, with increased consultation helping to align regulations with operational realities.
It noted that the collaborative approach has been evident in ongoing engagements with key institutions such as the Zimbabwe Revenue Authority (ZIMRA), the Ministry of Industry and Commerce, and other regulatory bodies.
“The introduction of reforms such as the payment-after-assessment system in customs administration reflects a shift towards strengthening transparency and governance in trade processes.
“While businesses are adapting to the new system, the long-term objective is to improve efficiency and modernise revenue collection, contributing to a more robust trade framework,” the CZI said.
Beyond domestic policy, the CZI said Zimbabwe is also actively positioning itself within regional and global markets, with ongoing trade negotiations with China opening avenues for expanded market access, particularly for value-added products.
“Industry consultations are helping to shape a balanced approach that promotes exports, supports local production and strengthens participation in global value chains.”
The CZI indicated that there is growing emphasis on value addition and industrialisation, with stakeholders advocating for investment models that support local processing of minerals and agricultural commodities.
It said this shift is expected to enhance export earnings, create jobs and deepen linkages across sectors of the economy.
At the same time, the CZI said Zimbabwean industry continues to demonstrate its capacity to compete at a regional level.
It noted that the country’s strong performance at the 2026 SADC Annual Quality Awards — where seven awards were won across multiple categories — underscores improvements in product quality, service delivery and export readiness.
“This recognition signals that local firms are increasingly meeting international standards, strengthening their ability to access regional and global markets,” the CZI said.
It noted that within the domestic economy, production remains central to the growth agenda, as discussions at the Business and Economic Outlook Symposium emphasised that firms investing in production capacity and efficiency are better positioned to benefit from the current stability.
“There is a clear shift towards building resilient value chains, improving utilisation of existing capacity and reducing reliance on imports,” the CZI said.
On sector-specific initiatives reinforcing this trajectory, the CZI said that in manufacturing and agro-processing, targeted interventions are supporting industries such as dairy, beverages and food processing, with a focus on improving efficiency, addressing cost structures and enhancing competitiveness.
“Across value chains, research and stakeholder engagement are providing data-driven insights to inform policy and investment decisions,” reads part of the newsletter.
The CZI said its expanding research capability is also playing a critical role in shaping the economic outlook, as ongoing studies on capacity utilisation, distressed firms and sector performance are generating high-frequency business intelligence, enabling more responsive and evidence-based policymaking.
The CZI said the strengthening of economic data systems is expected to improve decision-making at both firm and national levels.
