Zimbabwe's Manufacturing Sector Accelerates Economic Growth with $1.4 Billion in New Investments

Strategic Insights -

The manufacturing sector in Zimbabwe has emerged as the country's top contributor to the gross domestic product, accounting for 15.3% in 2024, surpassing mining, wholesale and retail trade, financial services, and agriculture. This growth is driven by new investments of over $1.4 billion in expansions, particularly in steel and cement, pharmaceuticals, and food processing. According to the Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube, these investments are driving structural transformation, import substitution, and job creation as the nation accelerates towards Vision 2030.

Key Takeaways:

  • Zimbabwe's manufacturing sector has attracted over $1.4 billion in new investments for expansions in 2025, with a significant increase in steel and cement, pharmaceuticals, and food processing.
  • The sector now accounts for 15.3% of the gross domestic product, surpassing mining, wholesale and retail trade, financial services, and agriculture.
  • The number of local pharmaceutical manufacturers has grown from 9 in 2020 to 14 in 2025, with over $70 million in new investments, resulting in a 56% increase.
  • Exports of local pharmaceuticals have risen by 20% due to the Medicines Control Authority of Zimbabwe's attainment of World Health Organisation Level 3 certification.
  • The iron and steel industry now produces over 50,000 metric tonnes per month, employing more than 15,000 workers, up 11% from 2024.
  • Dinson Iron and Steel Company has become a regional player, creating over 2,000 jobs and supporting hundreds of small suppliers through its Local Development Enterprise.
  • The cement sector is witnessing a construction boom with Huaxin Cement's $15 million new plant, WHI-ZIM's planned $1 billion investment in Magunje, and Shuntai Investments' 800,000 metric tonne per year plant in Chegutu.
  • The FMCG sector has attracted significant capital inflows, with Mega Market investing $25 million in a maize and wheat milling plant, National Foods injecting $22.7 million into a pasta and biscuit factory, and Nestle Zimbabwe committing $7 million to expand cereal production.

Statistics:

  • The Volume of Manufacturing Index (VMI) climbed from 46.6% in 2019 to 140.5% in 2024, showing cumulative growth of over 200%.
  • For the final quarter of 2024, the VMI stood at 156.6, up 10.1% year-on-year.
  • Average capacity utilisation has risen from 51% towards the end of 2024 to about 57.3% presently.
  • The industrial boom has created over 3.2 million formal jobs in the manufacturing sector, representing 7% of formal employment.

Sources:

  • The Herald
  • AllAfrica Global Media (allAfrica.com)
  • 2025 Mid-Term Budget Statement
  • Zanu-PF Annual People's Conference
  • Industrial Development Fund (IDF)
  • Venture Capital Company under the Ministry of Industry and Commerce