Online Reporter
Rumbidzayi Zinyuke
Senior Reporter
ZIMBABWE is taking steps towards revitalising the industrial base following approval by Cabinet of the Zimbabwe National Industrial Development Policy 2, which seeks to accelerate economic transformation and support the National Development Strategy 2.
Speaking at the post-Cabinet briefing in Harare yesterday, Information, Publicity and Broadcasting Services Minister Dr Zhemu Soda said the new policy would guide the country’s industrialisation drive over the next five years, building on progress made under earlier programmes.
The policy follows the implementation of the Zimbabwe National Industrial Development Policy 1 (2019–2023) and the Zimbabwe Industrial Reconstruction and Growth Plan (2024–2025), both of which sought to revive manufacturing and strengthen domestic production.
Dr Soda said the new framework sought to deepen industrial growth while positioning Zimbabwe’s manufacturing sector as a key driver of economic expansion and job creation.
“The Government has developed the Zimbabwe National Industrial Development Policy 2 (ZNIDP2) 2026–2030, which will guide Zimbabwe’s industrialisation agenda for the next five years, in tandem with the National Development Strategy 2 (2026–2030). The policy aims to promote sustainable and diversified industrial growth, enhance productivity and drive structural transformation and competitiveness by accelerating investment in Zimbabwe’s industrial sector,” said Dr Soda.
Under the new policy, the Government is targeting growth in the manufacturing sector by the end of this decade.
Dr Soda said the strategy also seeks to increase manufacturing sector growth from an average of 2,2 percent to more than 5 percent annually by 2030, while raising the sector’s contribution to the Gross Domestic Product from US$7 billion to US$12 billion over the same period.
Manufacturing exports are also expected to more than double from an average of US$470 million to US$1 billion by 2030.
“The policy aims to raise the sector’s contribution to GDP from US$7 billion to US$12 billion by 2030. It also aims to improve capacity utilisation from an average 51 percent to 60 percent by 2030 and to increase the Volume of Manufacturing Index (VMI) from 149.4 to an average of 180 by 2030,” he added.
Dr Soda said the policy would also focus on strengthening local industries through innovation, modernisation and improved linkages across value chains.
The ZNIDP2 is anchored on six strategic pillars that include deepening industrialisation and optimising value chains, leveraging Zimbabwe’s competitive advantages in mining and agriculture and promoting rural industrialisation through spatial development initiatives.
Other pillars focus on enhancing industrial competitiveness through digital transformation and the integration of artificial intelligence, strengthening local content development and promoting inclusive industrialisation through stronger linkages with micro, small and medium enterprises.
“The pillars entail prioritising intermediate goods production under the ‘manufacturing for manufacturing’ concept and leveraging the country’s natural endowments to promote beneficiation. The policy will also drive industrial modernisation through retooling, automation, concessional financing and duty-free capital equipment imports while embedding artificial intelligence in manufacturing and value chains,” he said
The policy also seeks to strengthen innovation ecosystems by linking industry and academia while promoting investment in science, technology, engineering and mathematics (STEM) and digital skills development.
Industry and Commerce Minister Mangaliso Ndlovu said while the Government had set ambitious targets under the policy, they were achievable, noting that the manufacturing sector had already shown signs of recovery.
“Capacity utilisation of 60 percent, we believe it’s fair, but again it’s possible to far exceed that, especially looking at the fact that in 2025 capacity utilisation is sitting at 57,3 percent. But that said, you are correct in that our targets are showing ambition. We are targeting to grow the value of the manufacturing sector from US$7 billion to US$12 billion,” he said.
He said the Government was working closely with the Ministry of Energy and Power Development to ensure adequate electricity supply to support industrial expansion.
“We believe that before 2030 we would have far exceeded 4 000 megawatts, which will be more than adequate, at least for the set target, but we believe that there will be scope to do more,” said Minister Ndlovu.
To support domestic industry, he said the Government had also put in place financing mechanisms to help companies access capital for retooling and expansion.
Minister Ndlovu said the Targeted Finance Facility and the Industrial Development Fund were among key interventions aimed at unlocking funding for the productive sector.
“I’m sure you also know that we launched last year the Industrial Development Fund, which we have assigned the venture capital fund to manage on our behalf. If I’m not mistaken, the first batch of recipients are ready to be notified this week,” he said.
He added that the policy was largely private-sector driven, with industry stakeholders playing a central role in its formulation and implementation.
“All the sub-committees that came up with this document were headed by members from our business member organisations, all of whom we have signed MOUs with. So from that onset, it is their document. It is not a Government document,” said Minister Ndlovu.
The new industrial policy is expected to play a critical role in strengthening Zimbabwe’s productive capacity, boosting exports and creating jobs as the country works towards achieving an upper-middle-income economy by 2030.
