Survey to spotlight industry's biggest challenges and opportunities

The Confederation of Zimbabwe Industries (CZI) is set to launch the 16th edition of its annual Manufacturing Sector Survey on June 18 at Hyatt Regency Harare, with industry leaders describing the report as the most comprehensive assessment of Zimbabwe's manufacturing sector to date.

The survey forms the opening event of CZI's ZimIndustry and Manufacturing Indaba programme, a series of engagements, exhibitions, business exchanges and policy dialogues designed to place Zimbabwe's industrial sector at the centre of national economic discussions.

The initiative will culminate in the annual ZimIndustry Indaba later this year.

To compile the 2025 report, the Confederation of Zimbabwe Industries surveyed 388 formal manufacturing companies across all ten provinces, covering every major manufacturing sub-sector.

Notably, 72 percent of participating companies are not CZI members, a factor the organisation says strengthens the credibility and representativeness of the findings.

According to CZI, the survey meets a 95 percent statistical confidence level, making it one of the most reliable indicators of the sector's performance and outlook.

Unlike previous editions, which largely focused on capacity utilisation, the 2025 survey expands its scope to examine broader issues affecting competitiveness, productivity, employment, technology adoption and investment.

One of the key questions addressed by the report is whether recent improvements in manufacturing activity have translated into sustainable economic growth.

Although capacity utilisation reportedly reached a 14-year high, analysts say the sector still has significant unused production capacity, raising questions about the sustainability of current gains.

The survey also examines employment trends, seeking to determine whether industrial growth is creating stable, permanent jobs or accelerating a shift towards casual and temporary labour.

Industry observers say the findings could have important implications for household incomes, labour markets and government revenue collection.

Another major area of focus is Zimbabwe's ongoing debate around currency policy.

Manufacturers were asked where they generate revenue and how they access foreign currency, insights that are expected to contribute to discussions surrounding the country's monetary framework.

Import dependence has emerged as another critical concern.

Despite Zimbabwe's substantial agricultural and mineral resource base, more than half of manufacturing inputs continue to be sourced from outside the country.

According to preliminary findings, the textile sector imports 75 percent of its raw materials, while fabricated metal products rely on foreign inputs for 72 percent of their production requirements.

Paper products depend on imports for 71 percent of inputs, while rubber products import 69 percent.

Even the food processing sector, traditionally regarded as one of Zimbabwe's strongest manufacturing industries, imports 51 percent of its raw materials.

Across all 15 manufacturing sub-sectors, imported inputs account for an average of 55 percent of production requirements.

Industry experts argue that such dependence limits value addition and weakens domestic supply chains.

For the first time, the survey also measures the adoption of artificial intelligence (AI) and other Industry 4.0 technologies within Zimbabwean manufacturing.

The report will assess barriers to technology adoption, including skills shortages, connectivity challenges and financing constraints.

Additional areas covered include sustainability, gender representation in industrial leadership, technology upgrading, regional trade agreements and competition from imported products.

Preliminary results indicate encouraging employment growth in several sectors.

The food processing industry recorded a 16 percent increase in net employment during 2025, accompanied by 18 percent growth in production and 19 percent growth in revenue.

The wearing apparel sector posted seven percent employment growth, while chemical manufacturing also recorded seven percent.

Textiles expanded employment by six percent, while rubber and plastics, as well as wood products, each recorded five percent growth.

Industry leaders say these gains demonstrate the sector's potential but also raise questions about how growth can be sustained given the continued reliance on imported raw materials.

The launch event will feature several high-profile speakers.

Guest of honour Mangaliso Ndlovu is expected to outline Government policy measures aimed at supporting industrial growth.

Proceedings will be led by CZI president Mucha Mkanganwi and chief executive officer Sekai Kuvarika.

CZI chief economist Cornelius Dube will present the survey findings and review the sector's performance during 2025.

Industry executives scheduled to participate include Liam Philp, who will discuss technology adoption in manufacturing; Nancy Guzha, who will share experiences from the milling industry; Sevious Mushosho, who will discuss local value-chain development; and Bob Henson, who will focus on manufacturing expansion to support agriculture.

The survey is expected to attract manufacturers, policymakers, academics, investors and development partners seeking deeper insight into the state of Zimbabwean industry.

As Zimbabwe pursues its Vision 2030 agenda and seeks to transform into an upper-middle-income economy, manufacturing remains a key pillar of economic growth.

Industry leaders say the survey will provide critical evidence on where the sector stands today and what reforms are required to unlock future growth.

For stakeholders looking to understand the opportunities and challenges shaping Zimbabwe's industrial landscape, the June 18 launch is expected to provide one of the most detailed snapshots of the sector available.