GROWTH in the manufacturing sector continues to play a key role in import substitution and economic growth, Industry and Commerce Minister, Nqobizitha Mangaliso Ndlovu has said.
Zimbabwe’s import substitution policy is meant to stimulate the domestic industry by promoting production and consumption of local goods.
The Government’s economic blueprint, the National Development Strategy 1 (NDS1), focuses on production of goods such as tyres, fertilisers and pharmaceuticals.
The strategy also includes supporting the local industry through increased local procurement, financial support for small and medium enterprises (SMEs) and promoting use of the local currency, Zimbabwe Gold (ZiG).
Speaking in a local current affairs podcast, Minister Ndlovu said the Zimbabwe Industrial Reconstruction and Growth Plan (ZIRGP) — a transitional framework running from October 2024 to December 2025 — has been key to promoting long-term industrial growth.
“We came up with the ZIRGP to reconstruct the industrial and commercial landscape. The commercial side should be a catalyst for industry to grow. We presented a very comprehensive paper to Cabinet, and it spoke to what people were observing,” he said.
“The state of industry report gave birth to the ZIRGP in that we identified products that we were importing; among them were iron, steel, cement, pharmaceuticals and motor vehicles.”
The 15-month plan, Minister Ndlovu said, is meant to lay the foundation for the policy to come, which will be “as ambitious as the targets that President Mnangagwa has given us”.
Lupane State University institutional business analyst Dr Shynet Chivasa said the ZIRGP was key to reducing reliance on imports, lowering business costs and strengthening domestic manufacturing.
“Import substitution policies in ZIRGP focus on encouraging the use of locally produced goods by enforcing quality standards, promoting local content strategies, optimising value chains and prioritising the Buy Zimbabwe campaign with incentives for businesses favouring local products over imports at a 70:30 ratio,” she said.
“This approach is intended to create jobs, increase industrial output and build resilience for sustained economic transformation aligned with Vision 2030 aspirations and regional trade frameworks like AfCFTA (African Continental Free Trade Area), SADC (Southern African Development Community) and Comesa (Common Market for Eastern and Southern Africa).”
She said concerns about the quality, cost or competitiveness of locally produced substitutes are addressed through ZIRGP’s emphasis on quality assurance by enforcing consumer protection, trade measures and standards.
To enhance competitiveness, Dr Chivasa said, the plan also includes support for manufacturing raw materials locally, utilising idle manufacturing assets and encouraging research, innovation and financing for manufacturing.
“Improving ease of doing business and formalising businesses are also key, alongside strengthening collaboration between Government and the private sector. The Government recognises that addressing these concerns requires partnerships and incentives, supporting SMEs and institutionalising national campaigns like Buy Zimbabwe to ensure sustainable production and competitiveness of local substitutes in the market.”
Minister Ndlovu said the country was now positioned to be a net steel exporter through Dinson Iron and Steel Company (Disco).
Zimbabwe has been importing at least US$1 billion worth of iron and steel products annually.
Disco project director Mr Wilfred Motsi believes the US$1,5 billion Manhize steel plant is set to surpass the scale of Zisco.
“Reducing imports into the country is critical, and this will allow Zimbabwe to increase its exports as local production of steel is on the rise,” said Mr Dosman Mangisi, the chief operations officer of the Zimbabwe Institute of Foundries.
“Supporting local industries through value addition potentially gives local producers a competitive advantage.”
Minister Ndlovu also said Zimbabwe is likely to produce enough cement to meet local demand when the new plants currently under construction come on stream.
Zimbabwe National Chamber of Commerce Matabeleland Chapter former vice president Mr Louis Herbst said the recent increase in investment in local cement production facilities highlights a major success in Zimbabwe’s journey towards Vision 2030.
“What was once an import-dependent sector largely sourcing cement from Zambia has transformed into a self-sustaining and growth-driven domestic industry,” said Mr Herbst.
“This development underscores the tangible results of the Government’s import substitution and industrialisation policies, championed by President Mnangagwa, who has created a predictable, investor-friendly environment for productive sector expansion.”
Mr Herbst said increased cement output is likely to impact the entire value chain through stimulating demand in upstream sectors such as limestone extraction, packaging, energy and transport logistics, while downstream industries like construction, infrastructure development and real estate are likely to benefit from stable and locally sourced inputs.
“More importantly, this shift accelerates Zimbabwe’s transition towards a circular economy, where value retention, local processing and sustainable utilisation of domestic resources take precedence,” he said.
“The more we focus and push this circular economic model, the clearer it becomes that self-sustainability is no longer aspirational, it is becoming a visible national reality.”
Efforts are also underway to promote local production of pharmaceuticals. – Herald
