Outgoing Confederation of Zimbabwe Industries (CZI) Matabeleland chapter president, Stephen Ncube, has revealed that manufacturing capacity utilisation in Bulawayo rose to 51,3% during the review period of August 2025 to July 2026, up from 45,8% recorded in 2024.
“The relatively stable macroeconomic environment supported improved investment confidence and better production planning,” Ncube said during the organisation’s annual general meeting (AGM).
He noted that businesses reported improvements in operational efficiency, capitalising on greater economic predictability following the government and Reserve Bank of Zimbabwe (RBZ) interventions that moderated inflation and eased exchange rate volatility.
However, growth remained uneven across sectors.
Energy-intensive industries continued struggling with high production costs, particularly electricity tariffs that remain among the highest in the region.
“Unlike previous years, industries experienced virtually no load-shedding, with power interruptions limited to fault-related outages,” Ncube said.
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“The improved availability significantly reduced production disruptions.”
Despite these gains, he expressed concern about smuggled and counterfeit products eroding local industry competitiveness.
Ncube noted that 13 companies entered corporate rescue proceedings and three went into liquidation in Bulawayo during 2025, reflecting continued vulnerability despite overall stability.
“The cost of electricity remains a major concern. Zimbabwe’s power costs remain uncompetitive compared to neighbouring countries,” he said.
Ncube also noted that approximately 82% of banking deposits remain denominated in foreign currency, while 76% of manufacturing revenues are earned in US dollars, indicating limited confidence in the domestic currency.
The chamber welcomed the National Development Strategy 2 (NDS2), expressing hope that successful implementation would create a more competitive, investment-friendly environment for sustainable industrial growth.
Ncube urged the RBZ to maintain credible inflation control, exchange rate stability, and adequate foreign currency reserves while making local currency holdings more attractive through positive real returns on savings instruments.