Online Reporter
Nqobile Bhebhe, Zimpapers Business Hub
INDUSTRIALISTS Dr Busisa Moyo has called on Government to increase budgetary allocations to the manufacturing sector, saying it should be positioned as the main driver of economic growth.
Speaking at the oversubscribed 2026 National Budget Breakfast Meeting in Bulawayo on Monday morning, Dr Moyo said allocations to industry remain too small when measured against the scale of programmes required to drive industrial expansion.
“Based on the budget, allocation to industry seems very small given where we are and the programmes needed for the manufacturing sector and industrial expansion. We encourage a much healthier figure in future,” he said.
Dr Moyo noted that indications from the budget point to a slight slowdown in manufacturing growth, stressing that the quality of manufacturing-led growth was critical.
“From the budget one can see manufacturing growth slowing down slightly. The quality of manufacturing-led growth is important. I believe that the manufacturing sector should be leading the growth. As CZI, we firmly believe in value addition,” he said.
He warned that Zimbabwe risks falling behind regional peers who are investing heavily in industrial development.
“Neighbouring countries are putting a lot of emphasis on industry and we certainly do not want to be left behind. Why? Simply because primary production is very valuable, but the standard deviation or variability of earnings from primary production is very high,” said Dr Moyo.
Turning to investment flows, he said foreign direct investment (FDI) and private sector credit remain insufficient to support higher economic growth.
“Zimbabwe is at circa 4 to 8 percent when lending to the private sector, which stands at about US$2.5 billion. With FDI at US$3.2 billion, we are still financing only a total of about 12 to 15 percent of private sector needs,” he said.
Dr Moyo said higher GDP growth would depend on stronger incentives, increased foreign direct investment and expanded private sector credit.
