THE manufacturing sector has emerged as the leading contributor to gross domestic product (GDP) amid reports that capacity utilisation has improved 57,3% at the beginning of the year
This was revealed by Industry and Commerce minister Nqobizitha Mangaliso Ndhlovu at the official opening of the 32nd annual conference of the Business Council for Sustainable Development of Zimbabwe in Bulawayo yesterday.
He said it was satisfying that this conference is taking place at a time when the manufacturing sector is achieving notable milestones.
“Following the ZimStats GDP rebasing exercise, manufacturing has emerged as the leading contributor to GDP at 15,3%. Capacity utilisation has improved from 52,3% at the start of the year to 57,3%,”Ndhlovu said
He noted that investments worth over US$1 billion across food processing, packaging, cement, steel and beverages have revitalised local value chains.
“We are witnessing new factories, plant expansions, and technological upgrades that are positioning Zimbabwe for enhanced regional competitiveness.
“Our focus on value addition and innovation is yielding new products, new jobs and more export-ready enterprises.”
Ndhlovu announced that the gains reflect the unwavering commitment of the country’s private sector to building a stronger, greener and more competitive economy.
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“The global economy is undergoing rapid transformation. Environmental, Social and Governance (ESG) standards now determine market access, investment flows, and participation in global value chains.
“For Zimbabwean companies to thrive, whether regionally or internationally, they must adopt energy-efficient systems, green financing models, sustainable production technologies, and responsible resource management.”
The Industry and Commerce minister underscored the need for his ministry to intensify efforts of coming up with reforms to ensure that Zimbabwe’s reindustrialisation is not only competitive, but also sustainable and future-ready.
“We recognise that the next generation of industries must be built on foundations that protect the environment, conserve resources and align with international sustainability benchmarks.”
He further stated that his ministry is strengthening policies that advance green industrialisation and enhancing measures to support carbon-footprint reduction.
“Furthermore, we are promoting sustainable supply-chain management, encouraging industries to source responsibly, minimise waste, strengthen local linkages, and reduce dependency on environmentally harmful processes,” Ndhlovu said, emphasising that a resilient, sustainable supply chain is fundamental to ensuring stable production and protecting industries from global disruptions such as those witnessed in recent years
He also highlighted that the government is now finalising the Zimbabwe National Industrial Development Policy 2 (2026–2030), which will guide sustainable and diversified industrial growth over the next five years.
He said this will be complemented by the Local Content Strategy, which promotes the utilisation of domestic resources, strengthens local value chains and reduces import dependency.
“To address funding constraints, the government established the Industrial Development Fund, which provides patient capital for retooling and working capital requirements across manufacturing subsectors,” Ndhlovu said, giving an indication that Africa as a continent is moving deeper into economic integration under the African Continental Free Trade Area (AfCFTA).
“One reality has become unmistakably clear.Our global and regional competitiveness will no longer be determined by low-cost production alone,” he said.
“The future belongs to nations that can produce efficiently, consistently and sustainably.”
He insisted that in this emerging continental market of 1,3 billion consumers and a combined GDP exceeding US$3,4 trillion, the winners will be those who embed quality, innovation and environmental responsibility into the core of their industrial strategies
