Zimbabwe’s manufacturing sector defies trade uncertainty with job creation
The manufacturing sector in Zimbabwe is showing resilience, having recorded improved job creation in 2024 even as businesses express uncertainty about their preparedness for regional trade under the African Continental Free Trade Area (AfCFTA).
According to the 2024 Annual Manufacturing Sector Survey, presented by Dr Cornelius Dube, Chief Economist at the Confederation of Zimbabwe Industries (CZI), manufacturers increased employment levels while retrenchments fell in comparison to the previous year.
“Job creation improved from 11 percent in 2023 to 14 percent in 2024, while retrenchments declined from 8 percent to 7 percent. This points to an overall net gain in employment across the sector,” said Dr Dube during the report presentation.
The survey, a key barometer of the manufacturing industry’s health, indicates that employers are increasingly adding new positions, even amidst economic restructuring. However, the nature of employment is shifting.
The proportion of casual workers rose from 28 percent to 30 percent, while permanent employment dipped slightly from 72 percent to 70 percent, signalling a trend toward greater labour casualisation.
“While the creation of jobs is commendable, we need to monitor the quality of these jobs,” noted Dr Dube. “The slight increase in casual employment could reflect a cautious approach by employers navigating regulatory and cost uncertainties.”
Economist and labour analyst Lorraine Mufute views the rise in job creation as a positive sign.
“It suggests that manufacturers are responding to an uptick in demand or improved capacity utilisation. Even though some of the jobs are casual, they still represent income opportunities and can act as stepping stones to more stable work,” she said.
Her views were echoed by macroeconomic strategist Tendai Mpariwa, who said the resilience shown by the sector was encouraging.
“Zimbabwe’s manufacturing has been on a fragile recovery path, but these employment gains show that businesses are adapting. They are becoming leaner, yes, but also more agile in responding to opportunities.”
The employment gains come as the government pursues reforms aimed at reducing the cost of doing business and enhancing competitiveness under the AfCFTA framework. However, confidence in readiness to compete under the continental free trade pact appears to be weakening.
Only 29 percent of manufacturers surveyed in 2024 said they feel ready to compete under AfCFTA, down from 34 percent in 2023. Those saying “no” dropped slightly from 46 percent to 42 percent, but there was a significant rise in the number of respondents who are “not sure”, from 21 percent to 29 percent.
“This uncertainty is concerning,” said Dr Dube. “It underscores the need for more targeted policy support and information dissemination. If businesses don’t feel ready, they may miss out on the opportunities AfCFTA presents.”
Recent Government initiatives, including a six-month review of regulatory fees and taxes across various ministries, departments and agencies, aim to address some of these concerns. According to the Treasury, the review is expected to reduce compliance costs and create a more enabling environment for industrial growth and trade participation.
“Streamlining taxes and reducing red tape are essential steps toward improving business confidence,” said Mr Mpariwa. “Once firms begin to see tangible changes in their cost structures, we can expect a stronger push toward regional trade integration.”
Despite these challenges, the CZI’s latest findings paint a cautiously optimistic picture for employment and growth in manufacturing. The sector is not only expanding its workforce but also signalling that, with the right support, it can play a central role in Zimbabwe’s economic recovery.
Dr Dube concluded, “The survey results show that industry is trying; it is creating jobs, investing, and seeking ways to compete. Now the policy environment must follow through to match that effort.”-herald
