Online Reporter
Martin Kadzere, Zimpapers Business Hub
ZIMBABWE has the potential to reduce its national import bill by at least US$2,5 billion annually through targeted domestic manufacturing, according to a report following a comprehensive industrial study commissioned by the Ministry of Industry and Commerce.
The document, titled “State of Industry Report and 2027 Prospects” and conducted by local economic development think tank Africa Economic Development Strategies (AEDS), revealed that the country spends as much as US$3 billion every year on imported manufactured products that domestic factories already have the baseline capacity to produce.
According to the study, in 2025, fertilisers were the largest industrial drain on foreign exchange at US$337 million, followed by pharmaceuticals at US$330 million, iron and steel at US$300 million, and tissue and paper products at US$200 million.
Zimbabwe imported approximately US$10,2 billion worth of goods in 2025.
Beyond heavy industrial commodities, agricultural raw materials and basic food processing accounted for substantial outflows during the year.
Maize imports led agricultural spending at US$443,49 million; while the soya bean value chain chewed more than US$377 million, including US$267,02 million on crude soya bean oil, US$95,86 million on raw soya beans and US$14,48 million on soya flour and meal.
Light manufacturing and personal hygiene items spending recorded significant expenditure in 2025 as well.
Zimbabwe spends US$23,64 million on disposable napkins, US$12,48 million on toilet paper, US$8,91 million on jumbo tissue and US$5,21 million on school exercise books, pushing combined imports across the paper and hygiene segment beyond US$50 million.
According to the study, processed food imports remain elevated, with uncooked pasta consuming US$19,81 million, corn snacks taking US$1,18 million and imported freshwater fish exceeding US$1 million across multiple tariff lines.
The study highlighted a sharp structural divide within the economy.
While primary sectors such as dairy, sugar, tobacco, wood and furniture, leather, packaging and tourism have established strong domestic supply chains and dominate local procurement, secondary manufacturing sectors remain highly vulnerable.
Sub-sectors including pharmaceuticals, the automotive industry, fertilisers, chemicals, edible oils, iron and steel and rubber products continue to rely heavily on imported intermediate inputs.
The study found that vertical integration across the manufacturing sector remains low, especially in food processing and textiles.
When surveyed on why they rely on foreign sources, local manufacturers cited the outright unavailability of domestic inputs as the primary cause, cheaper foreign pricing and superior international quality.
To resolve these structural bottlenecks, the report outlined a strategic action plan centered on building a dedicated domestic intermediate-goods sector.
Key policy measures include launching anchor-firm supplier-development programmes to build capacity among local vendors, aligning special economic zones (SEZs) and industrial clusters directly with import-substitutable value chains and actively integrating small and medium enterprises (SMEs) into mainstream corporate supply networks.
These initiatives reinforce existing Government interventions under the “Buy Zimbabwe” campaign, including regulatory updates under Statutory Instrument 59 of 2026, which tightened commercial import licensing requirements on basic groceries, stationery and textiles to incentivise domestic corporate procurement.
Officially launching the Zimbabwe Industrialisation Conference and Expo (ZICE) 2026 last week, President
Mnangagwa declared that a nation rich in technical expertise, university innovation hubs and highly educated citizens should not rely on randomly imported goods.
Emphasising the need to keep capital within the country, he urged a shift towards locally made products.
In response, conference delegates adopted a resolution declaring that the importation of goods that can be manufactured locally is no longer negotiable.
Supporting the move, economic analysts say the initiative opens vast opportunities for national transformation.
Development economist Mr Enoch Musara noted that bridging the gap between local research hubs and private sector capital would unlock massive industrial potential, driving real value addition across supply chains.
He said targeted public-private partnerships will accelerate the creation of high-quality jobs, providing the foundation needed to transition Zimbabwe into an upper middle-income society.
AEDS executive director Professor Gift Mugano noted that Zimbabwe possesses a robust policy framework: the
Zimbabwe National Industrial Development Policy 2 (ZNIDP 2), alongside the Local Content Strategy.
“These two policies are set to reshape our industrial setup in a transformative way, particularly through local content initiatives aimed at import substitution,” he said.
“This shift will drive deeper localisation of value chains, expand local production and position manufacturing as the primary engine of economic growth, pushing its contribution towards a 25 percent share of GDP (gross domestic product).”
Manufacturing is now the largest contributor to Zimbabwe’s GDP, accounting for 17,1 percent of the national economy.
At its peak, the manufacturing sector contributed 26 percent of GDP.
Prof Mugano noted that the industrial policy focuses on value chains and strategic sectors, supported by upcoming sector-specific frameworks.
He highlighted that targeted Government support, including the Industrial Development Fund and duty-free import incentives for capital equipment, is building a transformative foundation for the economy.
The policy environment aims to position the manufacturing sector as a central growth driver, accelerating job creation, export diversification, import substitution and Zimbabwe’s journey towards upper middle-income status.
