Online Reporter
Nqobile Bhebhe
Zimpapers Business Hub
MANUFACTURERS should use the existing industrial strengths by investing in productivity, technology, quality and value addition as they prepare for bigger regional and global markets.
Zimbabwe already has industrial capabilities that show its potential to produce at scale, from cement and construction materials to food and agro-processing.
The challenge is to leverage these capabilities to build stronger regional value chains and internationally recognised brands. The push comes as Zimbabwe seeks to deepen its participation in regional and continental markets through the Common Market for Eastern and Southern Africa (COMESA) and the African Continental Free Trade Area (AfCFTA), creating opportunities for local companies to move beyond a relatively small domestic market.
Industry experts say Zimbabwe has the productive base, skills and raw materials needed to build internationally competitive businesses, but companies must now scale up, modernise production and become more deliberate about targeting export markets.
Economic development expert Mr Allan Mthunzi said local companies should stop viewing exports as an outlet for surplus production and instead build international markets into their core business strategies.
“Zimbabwean industry has strengths that can be built into globally competitive businesses,” he said. “We have companies with technical expertise, established production capacity and access to raw materials. The task now is to improve productivity, quality and consistency so that these businesses can compete and retain customers in international markets.”
The cement industry provides one example of an industrial capability that can be leveraged beyond the domestic market.
Zimbabwe has established cement manufacturing capacity supported by locally available limestone and other raw materials, creating an industrial base that extends beyond simple commodity production.
Major producers have invested in modern plants and expanded production capacity, while the wider construction-materials ecosystem supports employment and downstream activity in transport, distribution, mining, engineering and construction.
For instance, PPC Zimbabwe delivered another strong performance, with its EBITDA margin expanding to 34,2 percent from 19,1 percent in the comparable period.
PPC Zimbabwe emerged as a significant hard-currency dividend-generating manufacturing operation, with the cement producer declaring US$25 million in dividends to shareholders after a sharp improvement in operational efficiency translated into stronger cash generation.
“The opportunity is to use this capacity to supply neighbouring markets more competitively while developing higher-value construction products,”said Mr Mthunzi.
“Export competitiveness will depend on production costs, energy efficiency, logistics and the ability to maintain consistent quality. The same principle applies across manufacturing, with players saying that having capacity is only the starting point. A plant producing at a competitive cost, meeting required standards and delivering reliably can compete for regional contracts. A plant facing high costs and inconsistent production will struggle regardless of the market opportunities created by trade agreements.”
As they improve production standards and increase capacity, these companies can progressively enter regional markets.
The key is to ensure that Zimbabwean products are competitive on price, quality, packaging and reliability, industry players said.
“The regional opportunity is substantial, but companies will need to understand individual markets rather than assume that geographical proximity automatically guarantees sales,” said Mr Mthunzi.
“International buyers are not only looking for competitive prices. They want consistent quality, reliable supply, internationally recognised standards and producers capable of scaling up orders.
“This means Zimbabwean businesses must increasingly compete on productivity rather than protection. Investment in modern machinery, automation, energy efficiency, digital production systems and maintenance can help manufacturers reduce wastage and improve output while lowering unit costs.”
Mr Mthunzi said the ultimate objective should be to create a productive industrial base capable of generating sustainable foreign-currency earnings and employment.
“Our ambition must be to build businesses that can compete beyond Zimbabwe while creating jobs and deepening value addition at home,” he said.
“Export growth is important, but sustainable export growth comes from productive, innovative companies that can continuously meet international demand.”
Zimbabwe’s industrial future will depend less on the size of its domestic market and more on the competitiveness of its companies, they added.
Experts noted that companies that can demonstrate higher productivity and reliable export demand are more likely to attract capital for expansion. Zimbabwean industrial businesses must become more sophisticated in identifying markets.
Rather than attempting to sell everywhere, companies should identify specific regional markets where their products have a clear competitive proposition, understand regulatory requirements and establish reliable distribution networks.
COMESA and AfCFTA provide the market framework, but companies still have to win individual customers.
“Market access on paper does not automatically translate into sales,” said Mr Mthunzi. “Businesses must understand the customer, meet the required standards, price competitively and deliver consistently. That is where export readiness becomes critical.”
Economist Ms Alice Chikonzo said competitiveness had to be built across the entire industrial value chain rather than within individual factories.
“A factory cannot be globally competitive if the supply chain around it is expensive or unreliable,” she said.
“We need competitive suppliers, efficient logistics, dependable energy and financing that supports productive investment. The competitiveness of the final product starts much earlier in the value chain.”
Ms Chikonzo said competitiveness should be viewed as an ongoing process.
“Competitiveness is not something a company achieves once,” she said.
“It has to be maintained through continuous innovation, investment and improvement. The moment a business stops improving, competitors elsewhere will begin to take its market.”
Read more on www.heraldonline.co.zw
Agro-processing provides a second major opportunity. Zimbabwe has a substantial agricultural base that can feed manufacturing businesses producing food, beverages, processed grains, cooking oils and other consumer products.
The opportunity is to move further away from exporting or selling agricultural commodities in relatively unprocessed form and instead capture more value through processing, packaging, branding and distribution.
A stronger agro-processing sector can create multiple layers of economic activity.
“Farmers supply raw materials. Processors convert them into finished or semi-finished products; packaging companies supply inputs; logistics firms move the goods; retailers distribute them; and exporters connect Zimbabwean brands with consumers outside the country,” said Ms Chikonzo.
“This creates the kind of domestic value chain that can support sustained industrial growth. It also provides an entry point for SMEs.”
Smaller processors may not immediately have the capacity to export finished products across Africa, but they can become suppliers to larger food manufacturers, supermarkets, hospitality businesses and institutional buyers.
Technology will increasingly separate companies that can scale from those that remain confined to small markets.
Digital inventory systems, automated production, data analytics and modern quality-control systems can improve efficiency, while giving businesses better visibility over costs and production.
Skills will be equally important, the economic experts said.
Zimbabwe needs technicians, engineers, production managers, quality specialists, digital professionals and export-market experts capable of supporting modern manufacturing.
