War shockwaves hit Zimbabwe

Nearly all Zimbabwean businesses are feeling the effects of the escalating Israel–Iran conflict, with 99% reporting disruptions to their operations, according to a new survey by the Confederation of Zimbabwe Industries.

The findings paint a grim picture of mounting pressure on industry, driven largely by surging fuel costs and worsening supply chain challenges. The conflict - involving the United States and Israel on one side and Iran on the other - has disrupted global commodity markets, pushing up oil prices and triggering ripple effects across Zimbabwe's economy.

According to the survey, about 60% of firms reported a significant impact on their operations, while 31% experienced moderate disruptions and 8% reported slight effects. Only 1% of businesses indicated no impact at all.

Fuel costs have emerged as the biggest pressure point. A majority of companies, around 62%, reported increases of more than 20%, while 21% saw rises between 11% and 20%. These increases have cascaded into higher transport, raw material, import, insurance and shipping costs.

The situation has been compounded by Zimbabwe's recent fuel price hike, which saw petrol rise to US$2.17 per litre and diesel to US$2.05, placing the country among the most expensive fuel markets in the SADC region.

Transport and logistics costs have surged significantly, with 44% of firms reporting increases of between 11% and 20%, and 26% experiencing hikes exceeding 20%. At the same time, raw material and import costs have also climbed, further squeezing profit margins.

More critically, the survey highlights growing instability in supply chains. At least 56,1% of companies reported disruptions, mainly linked to delays in the delivery of raw materials.

"These disruptions are likely to affect the availability and timely delivery of raw materials and finished goods, leading to production delays and increased operational uncertainty," CZI said.

Businesses are now being forced to adapt by seeking alternative suppliers, increasing inventory levels or absorbing higher operational costs — measures that ultimately reduce efficiency and profitability.

The government has since moved to cushion consumers by reviewing fuel taxes and setting up an inter-ministerial committee to address rising costs. However, industry leaders warn that the ongoing global tensions could continue to weigh heavily on Zimbabwe's economy if the situation persists.

The survey underscores how geopolitical conflicts far beyond Zimbabwe's borders are increasingly shaping domestic economic realities, with businesses and consumers alike bearing the brunt of global instability.