Online Reporter
Zvamaida Murwira
Senior Reporter
THE manufacturing sector is now the biggest contributor to the country’s Gross Domestic Product and is on course to reach a US$1 billion mark in exports by 2030, a latest survey has shown.
The survey, commissioned by the Ministry of Industry and Commerce, was conducted by the Africa Economic Development Strategies, an economic think tank led by renowned economist Professor Gift Mugano.
Prof Mugano presented the survey report at Zimbabwe’s Industrialisation Conference and Expo (ZICE 2026), which was officially opened by President Mnangagwa, who also launched the report on Thursday.
“There’s always that temptation that people don’t believe that the country is changing. Indeed, the new industry is emerging. We have a new industry we have seen. All the stories that the industry is antiquated are gone,” said Prof Mugano.
He described the survey as comprehensive and of its own kind in terms of numbers, covering 2 071 firms across all the provinces and 22 economic sectors.
“You will see, Your Excellency, the delegates who are here, that the manufacturing sector is now the biggest contributor to gross domestic product. Last year, we were contributing 16.8 percent to the GDP. And this year, by June, the contribution has risen to 17.1 percent. And this is clear testimony that the economy is working in the right direction,” said Prof Mugano.
“We have noted in our study that out of a total import bill of about US$10 billion per year, 30 percent is equipment and machinery. That is about US$3 billion going into various sectors of industry such as mining and manufacturing, and this amplifies the view that this economy is working. Whenever we import equipment and machinery, we are building a solid foundation for sustainable growth.”
He said the current stability was powered by production and the duty-free tax introduced by fiscal authorities.
Prof Mugano said cement production firms continue to rise, an indication that there was massive construction work in the country which had its own downstream benefits.
On exports, Prof Mugano said, the survey showed that they rose from below US$200 million in 2021 and they now stand at US$584 million.
“You will see, Your Excellency, that in 2021, we were below $200 million in exports of manufactured produce. Right now, we are talking about $584 million, which is more than three times what we were exporting in 2021. That is a positive trajectory. And we are on track to hit US$1 billion in exports of manufactured produce by 2030,” said Prof Mugano.
He said the top five contributors of the manufacturing sector are foodstuffs, drinks and beverages, chemicals, iron and steel, adding that the country has since turned the corner as it was now exporting steel owing to the presence of Dinson Mine, moving away from iron imports.
“We used to be importing a lot of steel; now we are exporting over $100 million per year. So there is quite an exciting development in the industry. On iron and steel, we now have a total of 25 000 jobs created in the last five years or so. And production has risen in a massive way in that sector. You will notice that in pharmaceuticals, we now have 14 manufacturers from nine. What is also quite refreshing is the award given to the Medical Control Authority, certification of level 4 by the World Health Organisation. I understand we are the first in Africa to get this certification. Our industry is being endorsed,” he said.
Prof Mugano said the survey indicated that the number of lines of drugs which the country was producing stood at 1 500 from 900.
“We have moved by 600 lines of drugs. And this happened during the COVID-19 pandemic, where Zimbabwe showed its resilience and its innovation to produce more drugs. And we now have this and we are exporting to the region,” he said.
On access to finance, Prof Mugano said the survey revealed that 81.9 percent of money secured by companies is going into new machinery, new equipment, warehouses, expansion, new export markets and retooling.
Prof Mugano said there was need for banks to provide long-term funding for companies.
“We noted that the argument that there is no capital which is long-term is misplaced. Why? Because we noted in our study that pension funds play a critical role in funding construction, building properties, which are long-term. And in our view, we feel that there is a good case for pension funds to also lay out capital for industrialisation,” he said.
“Your Excellency, the major owners of banks in the banking sector, the big banks, are owned by pension funds. So why is it that the banks are saying we do not have long-term financing when they are holding pension funds? So we are challenging banks that there is no reason, in our view, from our statistics, that they cannot provide funding which is long-term, because they are holding pension funds. And there is no good reason why banks should give funds to mortgages at the expense of industry. And we feel that we need to balance that.”
The event was attended by Vice Presidents Dr Constantino Chiwenga and Dr Kembo Mohadi, Cabinet ministers and captains of industry, among other dignitaries.
