LESS than half of Zimbabwean businesses recorded profit growth during the nine months to September 30, 2025, while 44% continued to suffer shrinking margins, according to a new survey that highlights persistent pressures facing industry.
Findings from the Confederation of Zimbabwe Industries’ (CZI) 2025 Third Quarter Business Insights report — covering 514 firms — show that average turnover rose by just 2,4%, a performance the business member organisation said fell short of expectations under a broadly stable macroeconomic environment.
CZI noted that although stability helped, several structural challenges continued to weigh on firms.
“The proportion of firms that registered an increase in profitability (41%) was lower than those who registered a decrease (44%), underlining that a significant proportion of firms continues to face declining margins,” the report said.
Key constraints cited by businesses include stiff competition from imports and the informal sector, liquidity shortages, erratic power supplies, weak demand, and regulatory inconsistencies.
On employment, the survey showed muted job creation, with companies adding an average of four permanent positions and shedding two during the period.
“Approximately 41% registered an increase, while 15% indicated that their profit remained the same,” CZI said. It said the findings suggest a period of economic adjustment and uneven recovery across the business landscape.
The agriculture and horticulture sector had the highest proportion of firms reporting profit growth at 48%.
- Mthuli Ncube abandons struggling consumers
- Fears of jobs carnage as crisis deepens
- Fresh warning over bank rate hikes
- In Conversation with Trevor: ‘Zim must invest in human capital’
Keep Reading
However, profitability fell for a majority of companies in wholesale and retail (54%), as well as financial and ICT services (54%) — sectors CZI said are particularly sensitive to economic shocks, policy uncertainty, and shifts in consumer behaviour.
A breakdown by firm size shows medium-sized firms leading the recovery, with 55% reporting higher profitability. Small firms were the hardest hit, with half reporting a decline.
Turnover trends followed a similar pattern: 47% of firms registered an increase, 42% a decrease and 11% no change.
“The minimum turnover increase is a decrease of 100% while the maximum is an increase of 150%, giving a very wide range of experiences, with the mode being a 20% increase in revenue,” CZI said.
CZI noted that while some firms have leveraged improved stability, many continue to struggle with lingering operational challenges.
Medium and large firms registered turnover growth of 9% and 11% respectively, while small firms saw a 2% decline.
CZI said ongoing reforms aimed at lowering the cost of doing business would be critical to sustaining momentum and supporting recovery across sectors.
