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Bulawayo ranks second in GDP contribution
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Bulawayo Metropolitan Province has cemented its position as Zimbabwe's second-largest contributor to the national gross domestic product (GDP), following closely behind Harare. This development was revealed in a new report by the Confederation of Zimbabwe Industries (CZI), titled "Putting Bulawayo Economy into Perspective."
The survey, which analysed economic contributions over a three-year period from 2021 to 2023, highlights that Bulawayo's economy is anchored on five major sectors, with wholesale and retail trade emerging as the most dominant.
According to a presentation by CZI chief economist Dr Cornelius Dube, the wholesale and retail trade sector contributed 33.1 percent to Bulawayo's GDP in 2023. This was followed by manufacturing at 13.3 percent, finance and insurance activities at 10.6 percent, information and communication at 9.2 percent, and construction at 5.3 percent.
Despite its historical legacy as an industrial hub, Bulawayo's manufacturing sector is facing challenges. The CZI's 2024 Manufacturing Sector Survey places the city's manufacturing capacity utilisation at 45.8 percent - well below Mashonaland East, which leads with 75.6 percent.
Bulawayo businessman and former Zimbabwe National Chamber of Commerce (ZNCC) Matabeleland Region vice president, Mr Louis Herbst, stressed the need for a strategic, decentralised approach to maximise Bulawayo's economic potential. "The economy of Bulawayo is primarily driven by small and medium enterprises (SMEs), which are the backbone of employment and growth in the city," he said.
Mr Herbst called for targeted investment in the city's key sectors, including construction, manufacturing, ICT, tourism, agriculture, and finance and insurance. He warned against over-reliance on wholesale and retail trade, which, although significant in employment creation, lacks long-term resilience and sustainability.
He further criticised the centralisation of economic planning in Harare, saying it delays decision-making and stifles development tailored to Bulawayo's unique needs. "Decentralising authority is essential to enable local leaders and industries to respond quickly and tailor strategies to local needs," said Mr Herbst. "Bulawayo's distinct environment demands this flexible approach, as what works in Harare may not succeed here."
The revitalisation of Bulawayo's industrial sector is a pressing priority, he added, noting that it contributes roughly 26 percent to the city's GDP. He also acknowledged the Government's efforts to address structural challenges such as energy and water shortages, but urged more long-term solutions in renewable energy and water infrastructure.
While employment figures remain relatively strong, with a labour force participation rate of 63 percent compared to the national average of 48 percent, and an employment-to-population ratio of 45 percent against the national 37 percent, concerns over ageing infrastructure persist. Bulawayo has the oldest manufacturing plants in the country, averaging 22 years, compared to just 11 years in Mashonaland Central.
CZI Matabeleland Chapter vice president Mr Clive Oxiden Willows warned that the manufacturing sector in Bulawayo is in "critical care." He stressed the need for affordable, long-term financing to support retooling of outdated machinery. "Retooling continues to be a crucial topic as industries seek to modernise their plants for improved efficiency," he said. "This can only be achieved with long-term loans of 15 to 20 years at interest rates of around five percent."
Despite the hurdles, experts agree that Bulawayo holds vast potential. With a strategic mix of infrastructure development, industrial retooling, and decentralised governance, the city could evolve into a resilient regional economic hub.
"Empowering local decision-makers and reducing bureaucratic delays will accelerate development and better serve Bulawayo's specific needs," Mr Herbst stated. "With continued efforts to address infrastructure challenges and a focus on the five key sectors, Bulawayo can position itself for sustainable growth, regional stability and inclusive prosperity."
The survey, which analysed economic contributions over a three-year period from 2021 to 2023, highlights that Bulawayo's economy is anchored on five major sectors, with wholesale and retail trade emerging as the most dominant.
According to a presentation by CZI chief economist Dr Cornelius Dube, the wholesale and retail trade sector contributed 33.1 percent to Bulawayo's GDP in 2023. This was followed by manufacturing at 13.3 percent, finance and insurance activities at 10.6 percent, information and communication at 9.2 percent, and construction at 5.3 percent.
Despite its historical legacy as an industrial hub, Bulawayo's manufacturing sector is facing challenges. The CZI's 2024 Manufacturing Sector Survey places the city's manufacturing capacity utilisation at 45.8 percent - well below Mashonaland East, which leads with 75.6 percent.
Bulawayo businessman and former Zimbabwe National Chamber of Commerce (ZNCC) Matabeleland Region vice president, Mr Louis Herbst, stressed the need for a strategic, decentralised approach to maximise Bulawayo's economic potential. "The economy of Bulawayo is primarily driven by small and medium enterprises (SMEs), which are the backbone of employment and growth in the city," he said.
Mr Herbst called for targeted investment in the city's key sectors, including construction, manufacturing, ICT, tourism, agriculture, and finance and insurance. He warned against over-reliance on wholesale and retail trade, which, although significant in employment creation, lacks long-term resilience and sustainability.
He further criticised the centralisation of economic planning in Harare, saying it delays decision-making and stifles development tailored to Bulawayo's unique needs. "Decentralising authority is essential to enable local leaders and industries to respond quickly and tailor strategies to local needs," said Mr Herbst. "Bulawayo's distinct environment demands this flexible approach, as what works in Harare may not succeed here."
The revitalisation of Bulawayo's industrial sector is a pressing priority, he added, noting that it contributes roughly 26 percent to the city's GDP. He also acknowledged the Government's efforts to address structural challenges such as energy and water shortages, but urged more long-term solutions in renewable energy and water infrastructure.
While employment figures remain relatively strong, with a labour force participation rate of 63 percent compared to the national average of 48 percent, and an employment-to-population ratio of 45 percent against the national 37 percent, concerns over ageing infrastructure persist. Bulawayo has the oldest manufacturing plants in the country, averaging 22 years, compared to just 11 years in Mashonaland Central.
CZI Matabeleland Chapter vice president Mr Clive Oxiden Willows warned that the manufacturing sector in Bulawayo is in "critical care." He stressed the need for affordable, long-term financing to support retooling of outdated machinery. "Retooling continues to be a crucial topic as industries seek to modernise their plants for improved efficiency," he said. "This can only be achieved with long-term loans of 15 to 20 years at interest rates of around five percent."
Despite the hurdles, experts agree that Bulawayo holds vast potential. With a strategic mix of infrastructure development, industrial retooling, and decentralised governance, the city could evolve into a resilient regional economic hub.
"Empowering local decision-makers and reducing bureaucratic delays will accelerate development and better serve Bulawayo's specific needs," Mr Herbst stated. "With continued efforts to address infrastructure challenges and a focus on the five key sectors, Bulawayo can position itself for sustainable growth, regional stability and inclusive prosperity."
Source - The Chronicle
