Online Reporter
Sunday Mail Reporters
ZIMBABWE could create thousands of jobs through a deliberate policy shift to substitute nearly US$3 billion worth of imported goods that local industries have the capacity to produce, according to a latest report produced for the Government.
The revelations are central to findings in the State of Industry and 2027 Outlook report, produced by Africa Economic Development Strategies (AEDS) for the Ministry of Industry and Commerce, which was recently launched by President Mnangagwa at the inaugural Zimbabwe Industrialisation Conference and Expo in Harare.
The study, which drew responses from 2 071 firms across all 10 provinces, indicated that Zimbabwe imports approximately US$2,5 billion worth of manufactured products annually that could be produced locally. The report identifies import substitution opportunities across key sectors such as pharmaceuticals, fertilisers, iron and steel, and tissue paper products.
It also said import substitution has the capacity to create massive jobs when compared with exports, which currently stand at approximately US$584,8 million in manufactured goods.
“The study estimates that Zimbabwe imports approximately US$3 billion worth of manufactured products annually that could be produced locally, presenting significant import substitution opportunities, particularly in pharmaceuticals (US$330 million), fertilisers (US$337 million), iron and steel (US$300 million), and tissue paper products (US$200 million),” reads part of the report.
“This is a striking observation. Before we export, we need to close the US$3 billion. Import substitution has massive scope to create massive jobs when compared with exports.”
Heavy reliance on imports
Zimbabwe imported approximately US$10,2 billion worth of goods in 2025.
Fertilisers were the largest industrial drain on foreign exchange at US$337 million, followed by pharmaceuticals at US$330 million, iron and steel at US$300 million, and tissue paper products at US$200 million. Beyond heavy industrial commodities, agricultural raw materials and basic food processing products accounted for substantial outflows during the year.
Maize imports led agricultural spending at US$443,5 million, while the soya bean value chain chewed more than US$377 million, including US$267,02 million on crude soya bean oil, US$95,86 million on raw soya beans and US$14,48 million on soya flour and meal.
Light manufacturing and personal hygiene items spending recorded significant expenditure in 2025 as well.
Zimbabwe spends US$23,6 million on disposable napkins, US$12,5 million on toilet paper, US$8,9 million on jumbo tissue and US$5,2 million on school exercise books, pushing combined imports across the paper and hygiene segment beyond US$50 million.
According to the study, processed food imports remain elevated, with uncooked pasta consuming US$19,8 million, corn snacks taking US$1,18 million and imported freshwater fish exceeding US$1 million across multiple tariff lines.
The study highlighted a sharp structural divide within the economy.
While primary sectors such as dairy, sugar, tobacco, wood and furniture, leather, packaging and tourism have established strong domestic supply chains and dominate local procurement, secondary manufacturing sectors remain highly vulnerable.
Sub-sectors including pharmaceuticals, the automotive industry, fertilisers, chemicals, edible oils, iron and steel and rubber products continue to rely heavily on imported intermediate inputs.
The study found that vertical integration across the manufacturing sector remains low, especially in food processing and textiles.
When surveyed on why they rely on foreign sources, local manufacturers cited the outright unavailability of domestic inputs as the primary cause, cheaper foreign pricing and superior international quality.
To resolve these structural bottlenecks, the report outlined a strategic action plan centred on building a dedicated domestic intermediate-goods sector.
Key policy measures include launching anchor-firm supplier-development programmes to build capacity among local vendors, aligning special economic zones (SEZs) and industrial clusters directly with import-substitutable value chains, and actively integrating small and medium enterprises (SMEs) into mainstream corporate supply networks.
These initiatives reinforce existing Government interventions under the “Buy Zimbabwe” campaign, including regulatory updates under Statutory Instrument 59 of 2026, which tightened commercial import licensing requirements on basic groceries, stationery and textiles to incentivise domestic corporate procurement.
It is believed that Zimbabwe already has a sizeable domestic market capable of driving industrial expansion, with local demand absorbing between 75 and 85 percent of manufacturing output, 60 to 70 percent of agricultural production and 90 to 95 percent of services.
The Government’s industrialisation agenda under the National Development Strategy 2 (NDS2) — a five-year economic blueprint running through 2030 — prioritises value addition, beneficiation, local content, industrial competitiveness and private sector-led growth.
Manufacturing, the report observes, has become Zimbabwe’s largest contributor to gross domestic product (GDP) following sustained investment in modern machinery, technology and productive capacity over the past seven years.
Industrial modernisation
To unlock this potential, the Government has adopted the Local Content Strategy (2026-2035), which aims to increase the use of locally produced inputs from about 30 percent to 75 percent by 2035 through stronger local procurement, supplier development, technology transfer, industrial financing, beneficiation and the development of industrial parks and SEZs.
The survey also found growing investment in industrial modernisation, with 81,8 percent of firms that accessed finance channelling it towards industrial upgrading and export development.
Investments included new machinery and equipment (35,1 percent), warehouses and logistics infrastructure (12,4 percent), expansion into new export markets (12,4 percent), new product development and value addition (7,3 percent), upgrading existing infrastructure and retooling (7,2 percent), digitalisation and automation, including artificial intelligence (4 percent), and renewable energy (6 percent).
In addition, about 30 percent of Zimbabwe’s imports comprise equipment and machinery, reflecting continued investment in expanding productive capacity.
“These investments provide a strong foundation for industrial modernisation, competitiveness and sustainable economic transformation,” the report adds.
With manufacturing now the country’s largest economic sector, the study concludes that reducing dependence on imported manufactured goods while expanding domestic production will be critical to achieving Vision 2030 by strengthening local industries, creating employment, conserving foreign currency and positioning Zimbabwe as a more competitive manufacturing economy.
“Exporting jobs and opportunities”
At the just-ended Mine Entra in Bulawayo, Industry and Commerce Minister Mangaliso Ndlovu indicated that barely 12 percent of the US$3,4 billion worth of goods procured by the mining industry annually was on locally manufactured products.
“Why would we spend so much money outside the country, exporting jobs, exporting technologies and opportunities in areas where we have the capacity to produce locally? . . . For me, this is a huge opportunity because 85 percent is going somewhere. It’s creating employment opportunities elsewhere.”
When he launched the State of Industry and 2027 Outlook report recently, President Mnangagwa described the disproportionate reliance on imports as “untenable”.
In essence, the Local Content Strategy (2026-2035) seeks to progressively increase local input utilisation from approximately 30 percent to 75 percent by 2035 through stronger local procurement, supplier development, technology transfer, beneficiation, industrial financing, and the development of industrial parks and SEZs.
The strategy prioritises 16 sectors identified as having strong potential for import substitution, domestic value addition and employment creation.
Minister Ndlovu indicated that a comprehensive Industrial Development Policy will be launched soon, featuring a dedicated pillar on mines and mineral beneficiation.
The ministry, in partnership with Buy Zimbabwe, has also developed a digital platform to list locally manufactured products, enabling buyers to know what products are available, where, who is selling what and at what price.
