Online Reporter
Oliver Kazunga
Senior Reporter
ZIMBABWE’s manufacturing sector is on a firm recovery path, with capacity utilisation rising to 57 percent in the first quarter of the year from 47,7 percent in same period last year, signalling growing industrial momentum anchored on macro-economic stability.
Speaking at the International Business Conference at the ongoing Zimbabwe International Trade Fair (ZITF) in Bulawayo yesterday, Industry and Commerce Minister Dr Mangaliso Ndlovu said the sector’s performance reflected improved economic fundamentals, including price stability and stronger business confidence.
“Evidence on the ground revealed that in the first quarter of 2026 the manufacturing sector maintained a steady recovery and growth trajectory, with an average capacity utilisation estimated at approximately 57 percent across key sub-sectors including agro-processing, beverages and basic consumer goods,” he said.
The gains, Dr Ndlovu said, were underpinned by a stable macro-economic environment achieved through deliberate policy interventions by the Government.
“This performance reflects improved macroeconomic stability, particularly the achievement of single-digit inflation which has enhanced price predictability, strengthened business confidence and supported demand for locally produced goods.”
He noted that the rebound aligns with broader economic reforms under the Transitional Stabilisation Programme (TSP) and National Development Strategy 1 (NDS1), which have laid a strong foundation for industrial growth.
The TSP, which ran from October 2018 to December 2020, focused on stabilising the macro-economy and the financial sector as well as improving infrastructure. It laid the foundation for economic take-off and growth.
The programme was superseded by NDS1 (2021-2025), which has been replaced by NDS 2, running between 2026 and 2030 as the country seeks to attain upper middle income status.
“The TSP and NDS1 delivered a stable macroeconomic environment, strong primary production in agriculture and in mining, stability in the supply of power and energy and greater uptake of our primary products into domestic value addition and beneficiation, to mention just but a few key milestones,” Dr Ndlovu said.
The positive trajectory is also being reflected in export performance, with value-added goods gaining traction on international markets.
He said the sector’s resilience demonstrates the effectiveness of ongoing reforms and the growing competitiveness of local industries.
As Zimbabwe transitions into NDS2, the focus is expected to shift towards consolidating these gains and scaling production.
“Zimbabwe stands at a pivotal moment — the foundation for growth has been laid as fairly robust policies are in place and opportunities are abundant,” he said.
He urged industry players to capitalise on the favourable environment by investing in productivity and innovation to sustain the upward trajectory.
“In the ensuing bid to innovate and adapt to the dynamics of geopolitically induced shocks, the Government, industries and academia are challenged to co-create solutions that strengthen competitiveness, entrench innovation and deepen regional integration.
“Our Zimbabwe National Industrial Development Policy 2, which was recently approved by Government and to be launched soon, primarily focuses on accelerating agro-processing, driven by strong backward and forward linkages while mineral value addition, beneficiation and industrialisation is equally poised to take centre stage,” said Dr Ndlovu.
Meanwhile, Dr Ndlovu revealed that during the first quarter of the year the value of manufactured exports increased by 18 percent to US$80,26 million from US$69,8 million in same period in 2025.
“In the first three months of 2026 manufactured exports of value-added products increased by 18 percent, rising from US$69,8 million in January to February 2025 to US$80,26 million during the same period in 2026,” he said.
Dr Ndlovu said the growth was driven by key sectors, reflecting the success of policies promoting beneficiation and local production.
“Exports in iron and steel, building and construction materials, manufactured tobacco, packaging, ferrochrome and alloys largely drove this growth,” he said.
The development comes as the Government intensifies efforts to shift the economy from exporting raw materials to producing higher-value goods.
Dr Ndlovu said the gains attained so far should be consolidated through stronger collaboration between the Government and the private sector.
“The NDS2 implementation, therefore, calls us to forge even stronger ties between Government and the private sector to transform our nation into an upper-middle-income society characterised by inclusive growth, industrial expansion and improved standards of living.”
As Zimbabwe advances its industrialisation agenda, increased investment in manufacturing and processing is expected to further boost export performance.
