Story by Stanley James, Business Editor
ZIMBABWE’S exchange rate and inflation stability are yielding positive results, with the manufacturing sector recording a four percent increase in capacity utilisation to over 56 percent in 2025. The growth has been driven by significant investments by firms in new machinery and equipment.
According to the Confederation of Zimbabwe Industries (CZI) Annual Manufacturing Sector Survey Report for 2025, released on Thursday, the industry is on a growth trajectory, with sales volumes and turnover surpassing levels recorded in 2024.
CZI Chief Executive Officer, Mr Mucha Mukanganwi, noted that prevailing exchange rate and inflation stability are paying off as firms are increasing production.
“Capacity utilisation is a key factor in competitiveness, firms operating at excess capacity are not likely to enjoy economies of scale, which can facilitate price competitiveness, in 2025 manufacturing capacity utilisation increased to 55.9 percent up from the 52.3 percent recorded in 2024, this upward improvement is consistent with the increase in performance already described. However, this improved capacity utilisation still leaves the Zimbabwe manufacturing sector operating with idle capacity of about 44 percent. This high level of underutilisation makes it difficult for the sector to be competitive against regional and international peers with better utilisation levels,” he said.
As the National Development Strategy 2 aims to expand the economy, industrialist Mrs Nancy Tawengwa Guzha is confident about growth prospects.
“The manufacturing sector has also been consistently been upgrading the level of technology use to enhance the level of competitiveness what is now needed is to facilitate more production, focus on reduced imports and take advantage of existing trade protocols, therefore the prevailing stable economic conditions create that platform for sustained growth that will further boost capacity and the ability of the sector to continue operating in Zimbabwe,” she said.
Key highlights of the report include the dominance of projects in the beverage sector, continued growth in the food processing industry, increased investment in new machinery and equipment, and a rise in the production and consumption of locally manufactured goods.
