Story by Stanley James, Business Editor
ZIMBABWE has recorded a substantial reduction in its annual trade deficit for 2025, driven by increased industrial production and improved capacity utilisation in the manufacturing sector.
Recent visits to manufacturing firms in Harare’s industrial areas show production lines operating consistently, with companies stepping up domestic output to meet rising demand. The growth in productivity is now visible on retail shelves, where locally manufactured products are becoming more readily available.
According to data highlighted by Buy Zimbabwe, the country has achieved its lowest trade deficit since 2020. The trade deficit, which stood at US$1.6 billion in 2020, declined to just above US$620 million in 2024 before narrowing further to US$400 million last year.
Zimbabwe National Chamber of Commerce Chief Executive Officer, Mr Chris Mugaga, attributed the improvement to a stable economic environment that has supported business growth.
“It all goes to the stable economic climate that is ushering in a positive tone to sustain viability and growth. Riding on such a trajectory, it becomes inevitable for the country to achieve increased production. What is now needed is for the trend to be sustained,” he said.
Buy Zimbabwe Chairperson, Mr Munyaradzi Hwengwere, said while mining continues to account for the bulk of export earnings, there is now an opportunity for industry to capitalise on rising global commodity demand.
“While the mining sector accounts for a huge proportion of exports, this is the time for industry to take advantage of the current rise in demand for commodities on international markets. The current scenario is encouraging as it shows we are moving in the right direction in promoting local goods and creating jobs,” he said.
Economists say a narrowing trade deficit reflects stronger export performance relative to imports and improved foreign currency inflows.
Zimbabwe Economics Society member, Mr Misheck Ugaro said the country must now consolidate the gains and aim for a trade surplus.
“A low trade deficit means that a country is importing less relative to its exports, resulting in increased foreign currency receipts. What is needed now is a review of current policy measures to ensure they translate into positive results and move the country towards a trade surplus,” he said.
Government has consistently identified industrial productivity as a cornerstone of economic growth, with deliberate efforts aimed at increasing manufacturing sector capacity utilisation.
As domestic production rises and import dependence declines, Zimbabwe’s improving trade balance signals renewed momentum in its industrial recovery and broader economic stabilisation efforts.
