Nqobile Bhebhe-Zimpapers Business Hub
THE manufacturing sector is poised for a significant boost in 2027, with US$3,56 billion in quantified investments expected to bolster production capacity, strengthen value addition and increase the supply of domestically manufactured goods.
Finance Minister Professor Mthuli Ncube said several capital investments being advanced this year were at an advanced stage, with projects expected to become operational next year, which would accelerate the recovery of domestic industry.
The investment pipeline is dominated by metals and electricals, alongside fertilisers and chemicals, mineral beneficiation, cement, agriculture value chains, food and beverages, motor manufacturing, textiles and pharmaceuticals.
According to Minister Ncube’s State of the Economy presentation at the ZANU PF National People’s Conference in Chinhoyi last week, major projects include Dinson Iron and Steel’s US$1,5 billion investment, Super Smelters/Steelmate’s US$1 billion project, Xintai-Palm River’s US$342 million investment and Sandawana Lithium’s US$270 million project.
The figures represent disclosed investment values for identified projects.
The anticipated commissioning of new industrial capacity comes as manufacturing activity continues to improve, supported by increased production in food processing, beverages, tobacco, cement and metals.
Prof Ncube said manufacturing capacity utilisation rose from 45,1 percent in 2017 to 61,2 percent in 2025 and was projected to surpass 63,5 percent this year.
“Manufacturing is the largest contributor to real GDP (Gross Domestic Product) growth, and is showing real transformation.
“Capacity utilisation rose from 45,1 percent in 2017 to 61,2 percent in 2025, and is projected to surpass 63,5 percent in 2026.
“Growth is led by food processing, beverages, tobacco, cement and metals, with new steel from Dinson Iron and Steel boosting local production,” he said.
The sector’s Volume of Manufacturing Index also increased from 112,48 in 2022 to 159,1 in 2026, representing a 41,4 percent rise over the period.
The index recorded annual growth of 9,2 percent in 2023, 14,5 percent in 2024, 6,9 percent in 2025 and 5,7 percent in 2026.
“With output already 41,4 percent above its 2022 level, the sector is well placed to build on this momentum as investment in industrial capacity continues,” he said.
The figures point to an improving industrial base, with the next phase of growth depending partly on how quickly investment commitments are converted into operational capacity and sustained commercial production.
Fabriforge Engineering’s 2027 investment pipeline indicates planned investment of US$8,143 million and production expected to begin in the first quarter of next year. The investment value requires confirmation.
Expansion in metals and steel production could be particularly significant for construction, engineering and other manufacturing activities, where locally produced inputs can support downstream industries and reduce reliance on imported materials.
The broader investment programme is aligned with Government efforts to strengthen domestic production, deepen value addition and increase industry’s contribution to economic growth.
However, the pace of implementation will remain critical. Manufacturers require reliable electricity, competitively priced raw materials, adequate working capital and access to markets to ensure that additional capacity translates into viable output.
Government has also identified the removal of selected trade barriers as part of efforts to improve the competitiveness of domestic industry.
The manufacturing outlook is closely linked to developments in mining, which supplies raw materials for steelmaking, mineral processing and other industrial activities.
Prof Ncube said mineral production had generally increased since 2017, although some commodities continued to face challenges.
“Since 2017, Zimbabwe has been digging and producing more . . .Gold output has doubled. Coal is up more than one and a half times.
“Platinum and the other platinum-group metals are all up between 30 and 46 percent. And we now have a whole new lithium industry, which did not exist in 2017.
“Nickel and diamond (production) are lower and the Government is working to turn these around.”
Lithium has emerged as an important growth area, with higher exports and increasing domestic processing creating opportunities to capture more value from the country’s mineral resources.
Prof Ncube said lithium prices had recovered from the sharp decline experienced during the global oversupply period, although the market remained volatile.
“Zimbabwe’s lithium exports reached US$782 million in the first six months of 2026, a 230 percent increase compared to last year (year-on-year).
“Growing domestic processing is adding value, with lithium sulphate now among the exported products.
“Long-term demand remains underpinned by EVs, battery storage and the clean-energy transition,” he said.
