By Zachary Gava
Harare, (New Ziana) – Zimbabwe’s manufacturing sector is soaring, with industrial capacity utilization projected to reach the highest level in more than a decade, Finance, Economic Development and Investment Promotion Minister, Prof. Mthuli Ncube said on Thursday.
signalling growing confidence in domestic production and ongoing efforts to re-industrialize the economy.
Presenting the 2026 Mid-Term Budget and Economic Review in Parliament, Prof. Ncube said manufacturing capacity utilization is expected to rise from 61.2 percent in 2025 to 63.5 percent in 2026, the highest level recorded since 2013.
He said this signaled growing confidence in domestic production, and fruition of ongoing efforts to re-industrialize the economy.
“The improvement reflects continued investment in productive sectors, improved access to financing and Government initiatives aimed at supporting industrial growth and import substitution.
“To accelerate industrial development, Treasury has continued extending concessionary financing to productive sectors through the Industrial Development Fund. Beneficiary companies are drawn from key industries including engineering and construction, agro-processing, pharmaceuticals, chemical production and the motor industry, sectors considered critical for value addition, job creation and economic transformation,” he said.
Prof. Ncube said the manufacturing sector has also benefited from stronger demand for locally produced goods as the economy maintains macroeconomic stability and businesses expand production.
Zimbabwe’s manufacturing industry has faced years of challenges, including obsolete machinery, limited access to affordable capital, power shortages and competition from imports, factors that contributed to capacity utilization falling below 40 percent during parts of the last decade.
However, recent Government policies promoting local production, industrial financing and value addition have gradually reversed that trend.
Manufacturing remains one of the country’s largest employers, and plays a vital role in processing agricultural produce and minerals into higher-value products for domestic consumption and export.
With capacity utilization continuing to improve, Treasury says the sector is expected to play an increasingly important role in supporting Zimbabwe’s industrialization agenda and the drive towards attaining an upper-middle-income economy by 2030.
New Ziana
