Online Reporter
Rutendo Nyeve [email protected]
THE renewed investment and expansion across a broad range of industries has spurred the transformation of Zimbabwe’s manufacturing sector, which has become the largest contributor to the country’s Gross Domestic Product (GDP), accounting for 16,2 percent in the second quarter of 2026.
For many years, the mining and quarrying sector dominated contributions to GDP at 15,1 percent while manufacturing followed closely at 14,9 percent according to the Zimstats December 2025 report.
Speaking at the recent Zimbabwe Tripartite Negotiating Forum (TNF) Global Summit in Victoria Falls, Industry and Commerce Minister, Nqobizitha Mangaliso Ndlovu, revealed that industrial manufacturing capacity utilisation has risen to 61,2 percent, reflecting the continued recovery and expansion of productive capacity.
The resurgence has been underpinned by President Mnangagwa’s policies, which have shifted the national economic trajectory from resource extraction towards industrial production and the export of higher-value products.
Minister Ndlovu detailed how these policies are now bearing fruit, particularly through investments in the mining and manufacturing nexus.
“Manufacturing has now emerged as the largest contributor to Zimbabwe’s GDP, accounting for 16,2 percent of GDP in the second quarter of 2026, while capacity utilisation has risen to 61,2 percent, reflecting the continued recovery and expansion of productive capacity,” Minister Ndlovu said.
Domestic growth has been complemented by a strong export performance, with manufactured exports increasing significantly to approximately US$584,8 million in 2025, compared with US$437,6 million in 2024.
At the centre of this industrial resurgence is the US$1,5 billion Dinson Iron and Steel Company (DISCO) investment at Manhize near Mvuma.
Minister Ndlovu said the project is a practical demonstration of the transition from resource extraction to industrial production.
The plant has established significant steelmaking capacity, producing pig iron, steel billets, reinforcing bars, wire rods, and other products for domestic and regional markets. The impact of the investment is already visible in trade figures.
National steel exports reached 146 314 tonnes valued at US$92,1 million in 2025, while value-added steel exports surged to US$68,22 million in the first quarter of 2026, compared with US$19,25 million in the corresponding period of 2025, according to official figures.
Minister Ndlovu emphasised that the shift is part of a deliberate programme anchored in the National Vision 2030 and the National Development Strategy 2.
“Our task now is to change the old structure and ensure that our resource endowments become the foundation for productive industries, competitive enterprises, skilled employment, and sustainable economic growth,” he said.
“We are not seeking to stop the export of our natural resources. We are seeking to increase the value that Zimbabwe should derive from its resources at the international markets.”
Minister Ndlovu outlined that the transformation is not limited to steel, noting the development of local processing capabilities in the lithium value chain, citing the production of lithium sulphate at Prospect Lithium Zimbabwe (Arcadia) as a step towards retaining greater value locally.
Furthermore, the Government is strengthening the linkages between manufacturing, mining and agriculture, which provides approximately 60 percent of the raw materials used by the manufacturing sector.
About 15 priority agro-value chains have been identified to boost agro-processing and manufacturing. To support these efforts, the Government is also implementing the Local Content
Strategy 2026-2035, aimed at reducing the import bill of approximately US$3 billion worth of products that can be produced locally.
“The manufacturing sector is undergoing a significant transformation, with renewed investment and expansion taking place across a broad range of industries, including cement, fertiliser, food and beverages, fast-moving consumer goods, metals and metal products, and chemicals,” Minister Ndlovu said.
He also addressed the critical enabler of energy, acknowledging that reliable and affordable power is essential for industrialisation.
Minister Ndlovu said significant strides have been made in energy generation over the past five years, with the private sector contributing through captive power generation.
He said Government on its part was addressing the cost of energy to ensure competitiveness.
The TNF Global Summit serves as a platform for Government, business, and labour to build consensus on policies that attract investment, promote beneficiation, and ensure that Zimbabwe’s industrial transformation contributes to inclusive and sustainable economic growth.
As Zimbabwe moves towards an upper-middle-income society, the focus now is on building competitive industries capable of not just supplying local markets but global markets as well.
