Online Reporter
Oliver Kazunga-Senior Reporter
THE Government intends to restrict the importation of US$$4,5 billion worth of goods that can ordinarily be produced in Zimbabwe, under a proposed new law aimed at boosting industrialisation, creating jobs and reducing pressure on the country’s foreign currency reserves.
The proposed Local Content Act, which the authorities expect to operationalise next year, seeks to curb the importation of products that can be locally manufactured, strengthen local value chains and provide a legal framework for enforcing local content requirements across key sectors of the economy.
Products identified for potential import substitution include tissue paper, toothpicks, chewing gum, pharmaceuticals and a wide range of consumer goods that the authorities say Zimbabwe has the resources, skills and industrial potential to produce locally.
The Government has since established a high-level Local Content National Steering Committee comprising academics, business leaders, industry representatives and technocrats from various ministries.
The committee is chaired by economist and academic Professor Gift Mugano.
In an interview, Prof Mugano said the country could no longer afford to sustain imports of products that can be manufactured locally.
“The starting point is that we have an import bill of US$4,5 billion worth of commodities that can be produced locally,” he said.
“We are importing them because we don’t have a policy framework to stop that importation, which is unnecessary. It is becoming a burden on our fiscus and reserves because we are draining foreign currency unnecessarily.”
The proposed Local Content Act, Prof Mugano said, would operationalise the existing Local Content Strategy by introducing enforceable local content thresholds, as well as regulatory and compliance mechanisms.
Under the proposed framework, companies that meet prescribed local content requirements will qualify for tax and non-fiscal incentives, while those that fail to comply may face penalties.
The Government is also developing an artificial intelligence (AI)-powered local content rating and certification system that will assess companies based on their localisation performance.
The authorities have since identified 16 strategic sectors that account for a significant share of Zimbabwe’s import bill.
Studies assessing the country’s capacity to substitute imports have already been completed in nine sectors, while the remaining ones are being assessed through an ongoing state of industry study.
“The information from these studies will become the raw material for developing the principles that will underpin the Local Content Act,” said Prof Mugano.
Zimbabwe, he said, spends more than US$200 million annually importing tissue paper and over US$300 million on pharmaceuticals despite having the potential to produce many of these products domestically.
“We cannot continue importing products such as toothpicks, chewing gum, tissue paper and pharmaceuticals when we have the potential to produce many of them locally,” he said.
Prof Mugano further said the proposed legislation would become a key pillar of the Zimbabwe National Industrial Development Policy 2 (ZNIDP2) for 2026-2030, which seeks to accelerate industrialisation, deepen domestic value chains and transform Zimbabwe into a competitive manufacturing and export-led economy.
Industry and Commerce Minister Mangaliso Ndlovu recently announced an industrialisation drive aimed at substituting more than US$4 billion worth of imports through domestic production.
“The Local Content Strategy on its own is not enough. We need a Local Content Act to operationalise the framework and provide a clear implementation mechanism,” said Prof Mugano.
“We are quite advanced in driving the agenda of localising production and eliminating unnecessary imports. We are very certain that the Local Content Act will be operationalised by next year. By the end of this year, we expect to have completed studies covering all 16 sectors and developed draft principles for the Act.”
Official trade statistics show the scale of Zimbabwe’s reliance on imported consumer products.
Between 2021 and 2025, the country spent more than US$140 million importing beauty, cosmetic and personal care products, a sector that the authorities believe presents significant opportunities for local manufacturing.
Beauty makeup and skincare products accounted for the largest share of the import bill at US$43,6 million, while imports of toothpaste and related dental products cost about US$20 million.
Perfumes, deodorants and antiperspirants accounted for US$16,4 million, while petroleum jelly imports reached US$13,6 million.
Zimbabwe also spent US$22 million importing eyebrows and eyelashes, US$8,5 million on human hair and wigs, US$3,2 million on bath salts and nearly US$2 million each on sunscreen and shower gels.
Economist Dr Davison Gomo said the initiative could play a critical role in rebuilding Zimbabwe’s manufacturing sector, which has struggled to compete against imported products for years.
“The reason these goods come into the country is that our internal manufacturing capacity is still well below where it should be. Our entrepreneurial capacity to produce a variety of goods is also subdued to a large extent,” he said.
Official data shows that manufacturing sector capacity utilisation increased to 57 percent in the first quarter of this year from 47,7 percent during the corresponding period last year, reflecting growing industrial activity supported by macro-economic stability.
Dr Gomo said strengthening domestic production would not only create jobs but also help curb smuggling, counterfeiting and corruption.
“If local industry cannot adequately supply the market, you create opportunities for illegal trade and corruption.
“In the end, the Government finds itself competing against an invisible force driven by corruption,” he said.
He added that local content policies are globally recognised tools for nurturing domestic industries and enhancing competitiveness.
“The objective is to build a functioning manufacturing sector that can absorb young people coming out of colleges and universities and create products that can compete in local, regional and international markets.”
Another economic commentator, Ms Wendy Mpofu, said the proposed legislation could become a landmark intervention in Zimbabwe’s industrialisation journey.
“The Local Content Act has the potential to become one of the most important industrial policy interventions since independence. If implemented effectively, it can reduce import dependence, preserve foreign currency, stimulate domestic investment and accelerate the revival of Zimbabwe’s manufacturing sector,” she said.
