THE Confederation of Zimbabwe Industries says 2025 was a good year for business due to policy consistency, macroeconomic stability and increased confidence in the local currency, which supported growth across key industry segments.
According to the findings of CZI’s Annual Manufacturing Sector Survey 2025, unveiled in Harare yesterday, manufacturing recorded strong recovery across key performance indicators, with firms reporting growth in output, turnover and employment.
The survey findings show that overall manufacturing sector performance was positive in 2025, with output surging by 13 percent, turnover rising by 12 percent and net employment expanding by six percent.
The industrial lobby group said the improved performance reflected increased production activity, stronger business confidence and improved capacity utilisation across manufacturing companies.
According to the survey findings, large manufacturing firms generated over US$10 million in revenue, with key segments such as food products accounting for the biggest share of revenue distribution at 23 percent.
Beverages and basic metals, machinery and electrical equipment each accounted for 13 percent of revenue from large firms, reflecting their significant contribution to industrial output and commercial activity.
Chemicals and chemical products accounted for 10 percent of total revenue, while wood and wood products chipped in with10 percent to the revenue distribution of large manufacturing firms.
Other non-metallic mineral products, paper and paper products, and other manufacturing each accounted for seven percent, while rubber and plastics products followed at three percent.
Clothing apparel, textile, fabricated metal and furniture represented smaller shares of the revenue from large manufacturers.
The survey further showed that growth was recorded across different firm sizes, although performance varied depending on company scale and access to resources.
Medium-sized companies recorded the highest growth rate at 21,2 percent, supported by stronger output and turnover expansion as these businesses benefited from agility to scale operations in response to market opportunities.
Large companies recorded the strongest employment growth following an 18,1 percent expansion, reflecting their capacity to increase workforce numbers to support their production requirements.
Small enterprises recorded employment growth of 7,5 percent, with CZI attributing the slower pace to constraints related to capital availability and market access challenges.
The manufacturing sector continues to benefit from efforts aimed at improving economic stability, boosting local production and strengthening domestic value chains.
In terms of employment, beverages contributed 27 percent while food products accounted for 13 percent of total manufacturing employment, making the two industries key drivers of employment within the sector.
Beverages accounted for 27 percent of the employment across manufacturing subsectors, while food products contributed 13 percent of total manufacturing jobs, making the two industries key drivers of employment within the sector.
Wood and wood products were also major job creators at 12 percent of total manufacturing employment, followed by non-metallic mineral products and other manufacturing activities, which contributed seven percent each.
Wearing apparel and fabricated metal products each accounted for six percent of manufacturing employment, while rubber and plastics products contributed four percent.
Textiles, paper and paper products and basic metals, machinery and electrical equipment each accounted for two percent of total employment, while repair and installation of machinery and equipment, printing and reproduction of recorded media, and furniture each contributed 1 percent.
The distribution of employment and revenue across the subsectors demonstrates the diverse structure of Zimbabwe’s manufacturing industry, with both traditional and emerging industries playing important roles in economic growth.
These findings come as the manufacturing sector continues its recovery trajectory, with improved output, turnover growth and employment gains recorded during 2025.
Presenting the findings of the survey, CZI chief economist Dr Cornelius Dube said Zimbabwe’s manufacturing industry strengthened its recovery momentum in 2025, achieving growth across output, turnover and employment measures.
“Zimbabwe’s manufacturing sector showed strong recovery across all key performance metrics in 2025. Medium-sized firms have emerged as the growth engines of Zimbabwe’s manufacturing sector, recording the strongest expansion at 21,2 percent.
“Their performance demonstrates the advantage of combining sufficient scale with the agility to respond quickly to market opportunities, allowing them to increase output and turnover more effectively.
“While large firms continue to play a critical role in employment creation, recording the strongest job growth at 18,1 percent, their output growth.
“Small firms recorded the lowest growth at 7,5 percent, largely due to persistent challenges related to access to capital, limited market opportunities and constraints affecting their ability to expand operations,” said Dr Dube.
Industry and Commerce Minister Mangaliso Ndhlovu told guests at the event that the manufacturing sector showed resilience in 2025 and that focus must now shift towards accelerating industrialisation and enhancing economic competitiveness.
“As we reflect on the findings of this Report, we are reminded that Zimbabwe’s industrial transformation is no longer a matter of aspiration, but it is a national imperative.
“The resilience demonstrated by our manufacturing sector in recent years is commendable, but the message emerging from this Survey is clear: we must therefore accelerate the pace of industrialisation, deepen domestic production, and strengthen the competitiveness of our economy,” said Minister Ndhlovu.
CZI president Mr Mucha Mukanganwi said the business community noticed the positive operating environment in 2025, as demand for locally produced goods remained firm, driven by the improved economic conditions.
He attributed the improved performance to a more supportive policy environment, stability in the ZiG currency framework, strong international gold prices and improved agricultural output.
“The feedback we have received from business reflects a positive sentiment for 2025. Beyond the sentiments, our statistics are also showing that it has been a very good year for the industry.
“The policy environment has really improved, and businesses have been able to take advantage of that. The gold price cannot be ignored, and what has been happening in agriculture, especially with farmers performing well, has also translated into demand for industrial products,” said Mr Mukanganwi.
The survey showed that capacity utilisation grew to 55,9 percent from 52,3 percent the previous year, driven by improved policy consistency, macroeconomic stability and increased confidence in the local currency, the Zimbabwe Gold (ZiG).
According to the survey, the industry continued investing in capacity expansion, with 35 percent of surveyed firms investing in new capacity during the year, resulting in an additional nine percent of production capacity.
CZI said 20 percent of manufacturing firms were recent entrants, reflecting renewed investor interest, although more incentives were needed to support existing local manufacturers.
The organisation said local companies continued to face an uneven playing field compared with new foreign investors, calling for policies that strengthen domestic industry competitiveness.
CZI said that Zimbabwe’s mining and agriculture continued to dominate exports, with manufacturing yet to reach its full potential.
The organisation called for stronger incentives to promote industrial exports and enhance Zimbabwe’s competitiveness in regional and international markets.
CZI said continued engagement between business and Government would be critical in addressing structural challenges and creating conditions for sustainable industrial growth.-herald
