Business / Local
Manufacturing sector on the rise in Zimbabwe
10 Jun 2024 at 09:03hrs | Views
Zimbabwe's manufacturing sector is experiencing a significant resurgence, with capacity utilization surging to 53.2 percent, driven by growth in food, tobacco, cotton, leather, timber, furniture, pharmaceuticals, paper, and packaging industries.
This upward trend is attributed to massive investments and government initiatives, including the development of the new Zimbabwe National Industrial Policy (ZNIDP), aimed at growing the sector by at least 2 percent annually until 2030.
The sector has created approximately 272,000 jobs, according to the labour force survey, and recent commissions of state-of-the-art factories, such as Bakers Inn Bread and Champion Foods Private Limited, demonstrate the sector's potential.
Locally produced goods now occupy 80 percent of shelf space in wholesalers and retailers, up from 53 percent in 2018.
The Zimbabwe Local Content Strategy, approved in 2019, promotes local value addition and linkages, contributing to the sector's growth.
The manufacturing sector's contribution to GDP has increased by 44.9 percent, from US$15.54 billion (2009-2017) to US$22.51 billion (2018-2022). This growth has led to a significant increase in manufactured exports, rising from US$207.35 million in 2020 to US$448.7 million in 2023, with processed food, manufactured tobacco, and packaging being major contributors.
The resurgence of Zimbabwe's manufacturing sector is a promising sign of economic growth and development, poised to continue its upward trajectory with sustained government support and investment.
This upward trend is attributed to massive investments and government initiatives, including the development of the new Zimbabwe National Industrial Policy (ZNIDP), aimed at growing the sector by at least 2 percent annually until 2030.
The sector has created approximately 272,000 jobs, according to the labour force survey, and recent commissions of state-of-the-art factories, such as Bakers Inn Bread and Champion Foods Private Limited, demonstrate the sector's potential.
Locally produced goods now occupy 80 percent of shelf space in wholesalers and retailers, up from 53 percent in 2018.
The manufacturing sector's contribution to GDP has increased by 44.9 percent, from US$15.54 billion (2009-2017) to US$22.51 billion (2018-2022). This growth has led to a significant increase in manufactured exports, rising from US$207.35 million in 2020 to US$448.7 million in 2023, with processed food, manufactured tobacco, and packaging being major contributors.
The resurgence of Zimbabwe's manufacturing sector is a promising sign of economic growth and development, poised to continue its upward trajectory with sustained government support and investment.
Source - Byo24News
