Despite ongoing macroeconomic challenges, the government remains committed to fostering the growth and development of the local manufacturing sector, a Cabinet minister has affirmed.
During a recent visit to Proplastics Limited, a publicly listed piping products manufacturer in Harare, Finance, Economic Development, and Investment Promotion Minister Professor Mthuli Ncube highlighted various incentives designed to strengthen the industry.
These measures include VAT deferment, duty-free importation of select equipment, tax relief, and rebates aimed at stimulating industrial expansion.
“It is crucial to continue supporting the manufacturing sector—it creates employment, generates revenue, and strengthens economic linkages across different industries,” Professor Ncube stated.
We project the sector to expand by 3.1% this year, surpassing the initial 2% forecast. Increased agricultural productivity, particularly in the drinks and beverages segment, will fuel this growth.
Professor Ncube also announced that Treasury would soon disburse funds from the industrialisation fund, as outlined in the 2025 National Budget, to assist companies in upgrading their equipment.
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“The 2025 fiscal policy introduced an industrialisation fund to support targeted sectors such as pharmaceuticals, fertilisers, and the motor vehicle industry, ensuring resources are directed where they are most impactful,” he explained.
To further bolster industrial growth, the Treasury has allocated approximately ZW550.9 million to the Ministry of Industry and Commerce for the implementation of the Zimbabwe Industrial Reconstruction and Growth Plan (ZIRGP) for 2024-2025.
ZIRGP, a short-term industrial policy focused on import substitution, lays out strategies to enhance manufacturing processes, optimise value chains, and increase the use of locally produced materials. Running from October 2024 to December 2025, the plan prioritises seven key sectors for import substitution: tires, motor vehicles, fertilisers, pharmaceuticals, iron and steel products, cement, and edible crude oils.
Recognising the need for broader economic support, the government is also directing funds to key development institutions. These include the Zimbabwe Women Microfinance Bank (ZiG130 million), EmpowerBank (ZiG77.4 million), the Small and Medium Enterprises Development Corporation (ZiG130 million), and the National Venture Capital Company of Zimbabwe (ZiG108 million).
“The National Venture Fund is another critical initiative aimed at supporting start-ups from the ground up, helping them evolve into major enterprises,” Professor Ncube added.
