daniel chigunwe
The Zimbabwean manufacturing sector is poised for growth in 2025, fuelled by increased agricultural output and improved economic conditions, according to Finance, Economic Development and Investment Promotion Minister Mthuli Ncube.
In his 2025 National Budget Statement, the Minister highlighted that the sector is projected to expand by 3.1 percent next year, driven by key sub-sectors such as foodstuffs, beverages, tobacco, metals, and non-metallic mineral products.
This growth, is underpinned by a more stable macroeconomic environment, improved foreign currency exchange market performance, and a more reliable power supply, he said.
To further stimulate the sector, the Government has unveiled a comprehensive support package through the Zimbabwe Industrial Reconstruction and Growth Plan (ZIRGP).
According to the Minister, this plan aims to address critical challenges such as access to affordable long-term funding, a key constraint for many manufacturers.
To address this issue, the Government has allocated ZiG100 million to the Ministry of Industry and Commerce for industrial development finance.
This funding will be used to support the tooling and working capital requirements of greenfield projects. Additionally, the National Venture Capital Company of Zimbabwe (NVCCZ) will receive ZiG108 million to support startups and MSMEs, fostering innovation and job creation.
The Government will also prioritise the procurement of domestically produced goods, further boosting local manufacturing. In total, ZiG550,9 million has been allocated to the Ministry of Industry and Commerce to support the implementation of ZIRGP.
The manufacturing sector is also set to benefit from support from the African Development Bank, which will focus on various projects, including:
Sustainable enterprises development for women and youth;
Skills for youth and women employability and productivity projects;
Capacity building for youth and women in the fruit and vegetable value chain;
Upgrading and setting up infrastructure for aquaculture production units;
Setting up greenhouses for horticulture production units.
Industry experts are cautiously optimistic about the sector’s prospects.
“However, challenges such as high production costs, outdated machinery, and infrastructure bottlenecks remain significant hurdles,” said Walter Mandeya of Trigrams Investment.
“The Government’s commitment to addressing these issues will be crucial in unlocking the full potential of the manufacturing sector and driving economic growth.” — BH24
Bongani Ndlovu