Manufacturing index shows promising recovery: ZimStat

Zimbabwe’s manufacturing sector is demonstrating encouraging signs of growth, as evidenced by the latest Volume of Manufacturing Index (VMI) statistics released by the Zimbabwe National Statistics Agency (ZimStat).

According to ZimStat’s 2024 fourth quarter report, the VMI increased by a 5,6 percent on a year-on-year basis.

“The VMI for the fourth quarter of 2024 stood at 130,2, compared to 123,3 recorded in the fourth quarter of 2023,” ZimStat said, signalling consistent progress in the sector.

The VMI is a critical economic indicator that measures the production levels of the manufacturing sector over a specific period. It reflects changes in output volume, offering insights into the overall health and productivity of the sector.

Positive changes in the VMI typically indicate increased industrial activity, capacity utilisation improvements, and enhanced economic resilience.

“The foodstuffs, beverages and tobacco sub-sector recorded the highest growth rate of 8,4 percent, followed by the non-metallic mineral products sub-sector, which grew by 7,1 percent,” ZimStat said. This strong performance in essential industries bodes well for economic stability and consumer confidence.

Economist Dr Chipo Moyo noted that the upward trend in the VMI is a testament to the resilience of Zimbabwe’s industrial base despite various challenges.

“This growth is particularly encouraging as it reflects increased capacity utilization and investment in the manufacturing sector. Sustained growth in these sub-sectors can positively impact employment and foreign currency generation,” she said.

Another economist, Mr Tafadzwa Ncube, pointed out that the VMI serves as a reliable measure of industrial performance, especially when aligned with broader economic reforms.

“The fact that we are seeing consistent growth across multiple sub-sectors shows that the economy is gradually diversifying and becoming more resilient,” Mr Ncube remarked.

Additionally, ZimStat said “The Basic Metals and Metal Products sub-sector recorded a 6,5 percent increase in volume, largely driven by increased production of steel and related products.”

This aligns with ongoing efforts to bolster local manufacturing capacity and reducing dependency on imports.

The improving VMI offers hope for further economic expansion. The data from ZimStat provides an optimistic outlook for stakeholders, particularly investors seeking opportunities in the industrial sector.

“The Chemical Products sub-sector also recorded a notable growth of 4,8 percent,” ZimStat reported, underscoring the broad-based nature of the recovery.

Moving forward, economists agree that sustaining this positive trend will require concerted efforts to address structural challenges such as energy supply, foreign currency availability, and infrastructural development.

However, the current trajectory, as indicated by the rising VMI, is a positive sign of the sector’s resilience and potential for future growth.

With ongoing investment and policy support, the country’s manufacturing industry could continue to register significant improvements in the coming years.

As ZimStat’s report highlights, “The continued growth in various sub-sectors is essential for achieving overall industrial growth targets.”

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