Manufacturing sector output up 13pc — CZI

Oliver Kazunga

Senior Reporter

ZIMBABWE’S manufacturing sector recorded its strongest output growth in four years after firms expanded production capacity, upgraded factories and invested in new production lines, signalling growing confidence in the economy.

Results of the 2025 Annual Manufacturing Sector Survey released last week by the Confederation of Zimbabwe Industries (CZI) show that manufacturing output grew by an estimated 13 percent during the year under review, while installed production capacity increased by nine percent as companies positioned themselves for future growth.

The survey also showed that capacity utilisation rose to 55,9 percent, the fourth-highest level recorded since 2009, underlining the sector’s continued recovery and resilience.

Manufacturers are increasingly backing Zimbabwe’s industrial future with fresh investment, with 34,9 percent of firms expanding productive capacity during the year, virtually unchanged from the 34,8 percent recorded in 2024.

The findings suggest that industry is looking beyond short-term challenges and focusing on long-term growth opportunities through factory modernisation, technology upgrades and production expansion.

In its survey report, CZI said the manufacturing sector had registered strong performance across key indicators despite operating in a challenging global economic environment.

“Zimbabwe’s manufacturing sector showed strong recovery across all key performance metrics in 2025.

“The sector is positioning itself for growth and market expansion. Fifty-nine percent of the main plants are at most 10 years old, showing active upgrading.

“Four percent of plants are brand new, having been launched in 2025 and using the latest technologies,” said the industrial lobby group.

The survey findings point to continued investment in modern industrial infrastructure, with manufacturers upgrading equipment and production systems to improve efficiency and competitiveness.

Only four percent of plants are more than 50 years old, although some of the country’s oldest industrial facilities, dating back 86 and 87 years, remain operational.

The survey was conducted on 388 companies across the country, providing one of the most comprehensive assessments of the state of Zimbabwe’s manufacturing sector.

Small-scale firms accounted for 58,5 percent of respondents, while medium-sized enterprises constituted 21 percent and large companies 20,5 percent.

The positive performance comes as the industry continues to benefit from improved macro-economic stability, growing business confidence and stronger demand from key sectors of the economy.

Economists say investment in productive capacity is one of the clearest indicators of confidence, as companies typically commit capital only when they anticipate sustained demand and future growth.

The latest survey results suggest that Zimbabwe’s manufacturers are increasingly positioning themselves to take advantage of expanding opportunities, with rising production, factory upgrades and capacity expansion pointing to renewed momentum in the industrial sector.

Industry and Commerce Minister Dr Mangaliso Ndlovu has said improved industrial performance was translating into increased employment, particularly for young people, while boosting production for both local and export markets.

Meanwhile, under the Zimbabwe National Industrialisation Strategy II, the Government was now implementing targeted industrial policies focusing on sectors with a strong competitive advantage.

There is also renewed focus to coax the informal sector into the mainstream economy.

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