ZIMBABWE’S manufacturing sector is regaining momentum, with capacity utilisation rising to about 57% in the first quarter of 2026 and exports of manufactured goods climbing 18%, Industry and Commerce minister Mangaliso Ndhlovu has said.
Addressing an international business conference in Bulawayo this week, held alongside the Zimbabwe International Trade Fair 2026, Ndhlovu said the gains reflected a steady recovery across key sub-sectors, including agro-processing, beverages and basic consumer goods.
“Evidence on the ground revealed that in the first quarter of 2026, the manufacturing sector maintained a steady recovery and growth trajectory, with an average capacity utilisation estimated at approximately 57% across key sub-sectors,” he said.
He linked the improvement to firmer macroeconomic conditions, particularly single-digit inflation, which has improved price predictability and bolstered business confidence.
“In the first three months of 2026, manufactured exports of validated products increased by 18%, rising from US$69,8 million in January–February 2025 to US$80,26 million during the same period,” Ndhlovu said.
Exports of iron and steel, construction materials, manufactured tobacco, packaging, ferrochrome and alloys drove the growth.
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Ndhlovu said price stability had largely held across essential goods despite mounting global pressures.
“While I note that fuel and transport costs increased by closer than 9%, mainly due to the geopolitical tensions in the Middle East, business has largely absorbed the shocks, as reflected in the continued stability of general prices,” he said.
“Where adjustments have occurred, they have remained modest and contained.”
The rebound comes after years of strain in the manufacturing sector, which has grappled with low capacity utilisation, foreign currency shortages, power outages and policy uncertainty.
Industry once operated above 80% capacity in the early 1990s, but output fell sharply during the economic crises of the 2000s and has only partially recovered. In recent years, utilisation has fluctuated between 40% and 60%, underscoring the fragility of the recovery.
Greater exchange rate stability and tighter monetary policy over the past year have helped ease price volatility, allowing firms to plan, restock and gradually increase production — developments now reflected in rising output and exports.
Even so, manufacturers continue to face high production costs, erratic electricity supply and limited access to long-term finance, all of which are constraining faster expansion.
Ndhlovu said shifting global dynamics presented an opening to accelerate industrial transformation, with an emphasis on energy self-sufficiency through renewable energy, biofuels and alternative sources, alongside deeper localisation of inputs.
His remarks come ahead of the rollout of the Zimbabwe National Industrial Development Policy 2, a successor framework aimed at boosting value addition and beneficiation, particularly in agriculture and mining.
“Our Zimbabwe National Industrial Development Policy 2, which was recently approved by government and soon to be launched, primarily focuses on accelerating agro-processing… while mineral value addition, beneficiation and industrialisation is equally poised to take centre stage,” he said.
While the minister struck an optimistic tone, risks remain. Rising fuel and transport costs — up by nearly 9% — are beginning to filter through supply chains, while global geopolitical tensions continue to threaten both import costs and export markets.
Economists say sustaining the recovery will hinge on continued macroeconomic discipline, improved power supply and consistent policy implementation.
Still, Ndhlovu described the current moment as a turning point.
“Zimbabwe stands at a pivotal moment. The foundation for growth has been laid. Fair and robust policies are in place, and opportunities are abundant,” he said.
“This is the opportune time to forge partnerships, to invest in industry, and to build a competitive and connected economy.”
Running under the theme “Connected Economies, Competitive Industries,” the trade fair ends tomorrow. It was officially opened by Botswana President Duma Boko yesterday.