Online Reporter
Nqobile Bhebhe
Zimpapers Business Writer
ZIMBABWE has made notable progress in diversifying its export base over the past 14 years, while the manufacturing sector is showing encouraging signs of growth and resilience.
This reflects increasing momentum in the country’s industrialisation, value addition and beneficiation drive.
According to the African Development Bank (AfDB) Africa Industrialisation Index 2025: titled Policy and Investment Implications — Accelerating Africa’s Industrial Transformation, Zimbabwe recorded measurable improvements in expanding the range of products contributing to exports between 2010 and 2024.
AfDB contends that this signals a gradual transformation of the country’s export structure despite lingering structural constraints.
Export diversification is widely regarded as a critical pillar for sustainable economic growth as it reduces dependence on a narrow range of commodities, strengthens foreign currency generation and improves resilience against global market shocks.
A diversified export basket also enables countries to create more jobs across multiple sectors of the economy, stimulate innovation and increase industrial productivity.
Economies that export a broader range of manufactured and processed goods are generally better positioned to withstand commodity price fluctuations and external economic shocks, while also improving balance of payments stability.
Industrialists have been saying export diversification is particularly important for developing economies seeking long-term industrial transformation because it promotes value addition, expands market opportunities and enhances competitiveness in regional and international trade.
Increased diversification also helps countries move up global value chains by transitioning from raw material exports to higher-value industrial and manufactured products.
The AfDB Export Diversification Index shows Zimbabwe improving from around 0.87 in 2010 to approximately 0.79 in 2024, showing positive strides towards broadening industrial output and export participation.
The report also points to significant gains in the manufacturing sector, whose contribution to Gross Domestic Product rose from 9,2 percent in 2010 to 15,5 percent in 2024.
Manufacturing value added per capita surged nearly fivefold from US$83 to US$399,60 over the same period, while the sector recorded a strong average annual growth rate of 13,6 percent, ranking among the strongest performers in Southern Africa.
The positive trajectory comes as the Government intensifies efforts to promote beneficiation and local value addition in line with the National Development Strategy 2 (NDS-2), Vision 2030 and broader industrial transformation policies aimed at increasing exports of processed and manufactured goods rather than raw materials.
The gains reflect growing investments in agro-processing, tobacco value addition, pharmaceuticals, lithium processing and mining-related manufacturing activities, sectors viewed as critical in repositioning Zimbabwe into a competitive industrial economy.
While the country remains heavily reliant on mineral exports, particularly basic metals, economists say ongoing policy reforms and industrialisation strategies are laying a solid foundation for the emergence of more diversified export streams and higher-value manufacturing.
Economist Mr Isaac Nekati told Zimpapers Business Hub that export diversification remains critical for long-term macroeconomic stability and sustainable economic growth.
