Online Reporter
Sikhulekelani Moyo, [email protected]
THE Confederation of Zimbabwe Industries (CZI) has said 56,1 percent of local firms have experienced supply chain disruptions — including delays in the delivery of raw materials — due to the effects of the United States of America (USA) Israel conflict with Iran.
The USA Israeli conflict against Iran has created significant global disruptions, underscoring the deep interconnection between geopolitics and the world economy.
Key energy infrastructure and major shipping routes, particularly the Strait of Hormuz in the Gulf region — through which around 20 percent of global oil and a fifth of liquefied natural gas passes — have been severely affected.
Ocean carriers have rerouted vessels away from the Gulf and the Red Sea, opting for longer routes around the Cape of Good Hope, which adds between 8 and 15 days to Asia–Europe container transit times.
War risk maritime insurance premiums have also surged, with some insurers withdrawing cover for the region. This has triggered sharp increases in oil and gas prices and heightened market volatility.
Air freight has not been spared, with airspace closures across the region and major carriers suspending flights to the Middle East. Airlines such as Emirates, Qatar Airways and Etihad — which collectively account for 13 percent of global air cargo capacity — have had operations restricted, causing severe logistical bottlenecks.
The conflict has also halted more than 33 percent of global urea shipments, affecting fertiliser availability and threatening global food production. To assess the impact on businesses in Zimbabwe, CZI conducted an online rapid survey to gather insights on how firms are being affected.
In a report titled “Tracking Iran Israel USA Conflict Firm Level Impact in Zimbabwe”, CZI said nearly all firms surveyed reported being affected, with only 1 percent indicating no impact.
Zimbabwe’s leading industrial body said around 99 percent of firms confirmed their operations had been affected to varying degrees — significantly, moderately or slightly.
Specifically, CZI found that approximately 60 percent of firms reported a significant impact, 31 percent a moderate impact and 8 percent a slight impact.
Overall, the findings show that the conflict is having widespread effects across almost all companies.
A majority of firms are experiencing increases not only in fuel costs but also in a broad range of other operational expenses, including raw materials, transportation, logistics, imported inputs, insurance and shipping.
These rising costs are placing considerable pressure on production processes and profitability.
“Over half of the firms (56,1 percent) report experiencing supply chain disruptions mainly due to delays in delivery of raw materials, highlighting the widespread impact of the conflict on business operations,” said CZI.
“These disruptions are likely to affect the availability and timely delivery of raw materials and finished goods, leading to production delays and increased operational uncertainty. As supply chains become less reliable, firms may be forced to seek alternative suppliers, hold higher inventory levels, or absorb additional costs, all of which can reduce efficiency and profitability.”
CZI said the high number of affected firms demonstrates the significant strain the conflict is placing on supply networks.
The conflict has had a widespread and substantial impact across nearly all sectors of the economy.
Industries such as wholesale and retail, transport, healthcare and construction are almost entirely affected, reflecting severe disruptions to supply chains, service delivery and infrastructure access.
In contrast, sectors such as manufacturing, ICT services and finance have experienced varied levels of disruption — ranging from significant to moderate — indicating a degree of resilience despite ongoing pressure.
“Overall, while all sectors are affected, the severity differs, with core economic and service industries experiencing the greatest disruption. The rise in fuel costs stands out across all sectors as the primary factor affecting businesses as a result of the Iran–Israel–USA conflict. In addition, businesses are facing supply disruptions, higher distribution and shipping costs, and increased prices for raw materials,” said CZI.
