THE Confederation of Zimbabwe Industries has applauded the impact of Government interventions in shaping Zimbabwe’s business and economic environment, pledging to maintain focus on growing production, supporting value addition and improving competitiveness.
In its 2026 First Quarter newsletter, CZI said the first quarter of 2026 reflected key developments that shaped Zimbabwe’s business and economic environment.
The highlights, it noted, provide a concise overview of policy changes, market conditions and external factors that influenced industry operations during the period.
“Government revised several proposed tax measures following industry engagement, including the repeal of the cash withdrawal levy and adjustments to gold royalties and tax clearance requirements,” reads the newsletter.
CZI said regulatory costs are expected to decline due to the reduced licence fees and vehicle registration charges, adding that engagements are continuing to ensure the legislation of the reviews.
“Statutory Instrument 215 of 2025 introduced stricter rules on foreign participation in reserved sectors, requiring operational and investment adjustments by affected firms,” CZI noted.
During the quarter under review, the Zimbabwe Revenue Authority (ZIMRA) also introduced the payment-after-assessment system to strengthen governance and transparency in customs processes, with operational adjustments required by businesses during implementation.
CZI also added that single-digit inflation improved planning conditions, while tight monetary policy maintained high borrowing costs and constrained access to credit.
Zimbabwe’s annual inflation rate using the ZiG currency rose to 4,8 percent in April 2026, up from 4,4 percent in March, driven by rising import costs and fuel price hikes, benefiting from the tight fiscal and monetary policies.
Despite the increase, annual inflation remained in single digits for the fourth consecutive month, while month-on-month inflation for April 2026 was 1,1 percent, underlining enduring stability.
Commenting on global shocks and cost pressures, CZI said increases in fuel, fertiliser and commodity prices raised production and logistical costs across sectors.
On trade and industrial positioning, CZI noted that Zimbabwe advanced negotiations under the Framework Agreement with China, focusing on trade facilitation, supply chains, and industrial development.
“Rapid surveys reflected operational pressures across firms, driven by rising input costs and supply chain disruptions,” said CZI.
The lobby group maintained a strong presence across the policy ecosystem during the first quarter, with 92 external engagements recorded across Government, development partners, industry and regional bodies.
Engagements were led by the policy ecosystem, followed by regional and international platforms, diplomatic engagements and cross-cutting engagements, with additional focus on sustainable business events and member, value chain, and sector engagements.
“Engagements with ZIMRA and other regulatory bodies responded directly to changes in customs administration, particularly the shift to the payment-after-assessment system,” said CZI.
“These discussions focused on operational efficiency, transaction processes, and the impact on business cash flow.
“Engagements with the Government also reflected ongoing adjustments to fiscal measures and regulatory costs, ensuring that industry input continued to shape implementation. Across these platforms, the focus remained on aligning policy with operational realities and supporting business continuity.”
CZI said it conducted a deliberate sector-by-sector approach, with targeted interventions across key value chains to address specific industry constraints.
In the cotton value chain, the near-complete insight report is expected to inform production, processing and value addition strategies within the broader five-year industry agenda, while validation work on farm-gate ginning, glucose, and gelatin is refining opportunities for intermediate goods manufacturing.-hera;d
