Business
Second Republic Industrial Revolution Yields Growth
By Itai Mazire
The Second Republic, under the leadership of President Emmerson Mnangagwa, has implemented transformative policies and strategic investments across various sectors of the country’s industry, injecting approximately USD 2 billion into the economy and benefiting the livelihoods of the general citizenry.
Permanent Secretary for Industry and Commerce, Dr. Thomas Wushe, revealed that following new government investments of USD 1.5 billion in the manufacturing sector, there has been a notable increase in economic growth.
“Capacity utilisation rose from 51 to 57.3 percent in 2025.
“The Ministry increased the number of reserved sectors from 12 to 17, allowing USD 2 billion to pass into the hands of the general citizenry.
“The manufacturing sector contributed 15.3 percent to GDP, with the commercial sector contributing 11.9 percent, bringing the total contribution to 27.2 percent.
“The manufacturing sector received investments exceeding USD 1.5 billion across various subsectors.
“The Ministry facilitated 16 anchor rural projects valued at over USD 600 million. Value-added exports increased by 18 percent, rising from USD 292 million in August 2024 to USD 345.4 million in August 2025,” said Dr. Wushe.
He said the Ministry facilitated the establishment of the Industrial Development Fund, securing USD 100 million to cover three priority sectors: pharmaceuticals, the motor industry, and the iron and steel industry.
“The first disbursements are expected before the end of the year.
“The Volume of Manufacturing Index (VMI) increased from 142.29 in 2023 to 156, reflecting a year-on-year percentage increase of 10.13.
“There was the establishment of four new pharmaceutical companies, leading to an increase in local manufacturing capacity by 10 percent,” said Dr. Wushe.
He added that through engagements, the Ministry secured and unlocked USD 10 million from the African Development Bank for support to the leather value chain, which will see Zimbabwe regain its leading position in the supply of leather.
Dr. Wushe further stated that the Ministry successfully hosted the 65th Edition of the Zimbabwe International Trade Fair (ZITF) in Bulawayo, which drew 8,179 business visitors and 574 exhibitors, with 30 countries represented. About 6.3 percent of the participants recorded business deals worth over USD 5 million each.
“A new policy framework for the reserved sectors was approved by Cabinet to provide policy clarity on implementation and to level the playing field for equitable participation by both foreign and local investors,” he said.
Revenue collection from the Ministry’s efforts amounted to USD 600 million against an annual target of USD 540 million for the Standard Development Fund collection.
Dr. Wushe said the government hosted the inaugural Competitiveness Summit, which led to the adoption of reforms to ease the doing of business, initially reducing fees in the transport, retail, and livestock sectors, with other sectors set to follow.
“A National Command Centre for the Anti-Smuggling Task Force was established, leading to 3,970 inspections, 421 prosecutions, and the seizure of 4,831 contraband goods. Over 1.8 million items were inspected for trade measures compliance.
“Furthermore, the government facilitated the acquisition of institutional accommodation for two State-Owned Enterprises (CPC and NCC).
“Vigorous enforcement of the Consumer Protection Act and the removal of substandard goods from markets have been undertaken, safeguarding the health and economic interests of citizens,” he said.
As part of regional engagement efforts, Zimbabwe successfully hosted the 40th SADC-TBT Cooperation Structures Meeting to promote policy advocacy on quality infrastructure development.
Business
Commercial Milk Output Reaches Record 122 Million Litres in 2025
Zimbabwe’s commercial milk output reached its highest level in more than two decades in 2025, with raw milk production rising to about 122 million litres. When non-commercial milk consumed at household level is included, total national production stood at nearly 129 million litres.
The strong performance reflects continued recovery and structural strengthening of the dairy industry, driven by a combination of Government support and private sector investment implemented under the Second Republic.
Industry data shows that commercial milk production has grown by about 85 percent since 2017, when output was recorded at 66 million litres. Figures from the Dairy Services Unit indicate that the last time comparable volumes were achieved was in 2003, when production reached 111 million litres.
Zimbabwe Association of Dairy Farmers (ZADF) national chairman, Mr Edward Warambwa, said December recorded the highest monthly output on record, with milk deliveries reaching about 11,4 million litres.
He said total commercial milk production for 2025 amounted to 121,8 million litres, excluding an estimated seven million litres produced and consumed outside the formal market. This brought overall milk output for the year to approximately 128,8 million litres.
ZADF praised dairy farmers for maintaining production growth despite operating under challenging conditions, including rising input costs, limited access to affordable finance and ageing infrastructure.
Mr Warambwa said production costs have steadily increased over recent years, rising from around US$0,56 per litre in 2021 to US$0,60 in 2022 and about US$0,63 per litre currently, while producer prices have failed to respond accordingly.
Over the same period, retail prices for Ultra-High Temperature (UHT) milk have fluctuated significantly, ranging from about US$1,10 per litre in 2021, peaking at US$1,75 in 2024, and averaging roughly US$1,35 per litre at present.
He noted that although production costs stabilised during most of 2025, the average producer price remained at around US$0,58 per litre, raising concerns about the long-term sustainability of dairy farming if the pricing imbalance persists.
According to ZADF, the dairy industry supports about 42 000 jobs and maintains a national herd of roughly 67 000 cattle, including more than 40 000 milking cows.
Mr Warambwa said Zimbabwe could achieve milk self-sufficiency this year if key challenges — including pricing, regulatory costs, power supply reliability and access to suitable financing — are adequately addressed.
Milk intake by processors remained strong throughout the year, averaging above nine million litres per month from July to December, pointing to improved productivity at farm level and stable marketing arrangements.
Processor intake started the year at 8,76 million litres in January, dipped slightly in February and then rose steadily from March. The second half of the year marked a clear upswing, with July and August recording monthly intakes of 9,23 million litres and 9,40 million litres, respectively.
December delivered the strongest performance, with milk volumes destined for sale exceeding 11,41 million litres, the highest monthly figure recorded in 2025.
Direct sales by producers to consumers remained steady at between 700 000 and 780 000 litres per month, indicating that formal processors continue to absorb most of the milk produced. However, the consistent level of direct retailing highlights the growing contribution of small-scale and peri-urban dairy farmers to local supply.
Year-on-year data shows positive growth across most months, particularly towards the end of the year. October, November and December recorded increases of 9,7 percent, 10,15 percent and 13,43 percent, respectively, reflecting improvements in feed availability, herd management and favourable weather conditions.
Agronomist Ms Pamela Macheka attributed the sector’s performance to improved farm practices, including better pasture management, increased use of silage and commercial feeds, and enhanced extension support services.
She said continued investment in animal genetics and irrigation would help sustain the gains achieved so far.
Overall, the 2025 results suggest a dairy industry that is rebuilding confidence, capacity and competitiveness, positioning it as an important contributor to agricultural growth and national nutrition security.
Zimbabwe’s dairy recovery has been supported by several targeted interventions. In 2018, the Second Republic launched the Command Livestock Programme, under which 660 heifers were distributed to 151 beneficiaries across Matabeleland South’s seven districts.
The Presidential Silage Programme, implemented through the Agricultural Finance Corporation and the Commercial Bank of Zimbabwe, was introduced to support 1 338 farmers with feed production.
In addition, the European Union-funded Zimbabwe Agricultural Growth Programme supported the Transforming Zimbabwe’s Dairy Value Chain for the Future (TranZDVC) project, which registered more than 4 000 new dairy farmers between 2019 and 2022.
The project also strengthened genetics by importing 500 in-calf heifers from South Africa between 2020 and 2021, distributing them through a heifer-matching grant system. It further procured thousands of straws of sexed and conventional dairy semen and expanded artificial insemination services to improve breeding, reduce inbreeding and enhance the national gene pool.
Business
CPC Inspections Uncover Widespread Breaches of Consumer Laws
More than 2 000 companies were dragged before the courts last year for violating consumer protection laws, following an intensification of inspections by authorities in response to rising public complaints. While serious offences such as the sale of counterfeit goods remain a concern, regulators say many cases involve routine compliance failures that are increasingly burdening small and informal traders.
Figures from the Consumer Protection Commission (CPC) show that 12 627 inspections were conducted nationwide by the close of 2025. These checks resulted in 2 271 businesses being prosecuted for contravening the Consumer Protection Act (Chapter 14:44).
Enforcement efforts have been scaled up as Government moves to address unfair trading practices. Common violations include the sale of expired or underweight products and the failure to clearly display prices. Authorities say the rapid growth of the informal sector has also fuelled a rise in consumer complaints, particularly through social media channels.
CPC director for research and public affairs, Mr Kudakwashe Mudereri, said that although some cases involved serious consumer abuse, a significant number were linked to what he described as frequent but minor breaches of the law.
He explained that typical infringements include stocking expired goods, using illegal notices such as “No Refunds” or “No Returns”, failing to price goods properly, and trading in substandard or counterfeit products.
Mr Mudereri noted that many informal traders end up on the wrong side of the law due to limited knowledge of regulatory obligations, weak inventory control systems or financial constraints that make compliance challenging.
The CPC has also been working closely with the national anti-smuggling and business malpractices task force, deploying enforcement teams in all ten provinces to monitor adherence to consumer laws.
Several cases are currently before the courts, including matters involving businesses that refused to provide refunds — an offence under Sections 18, 34 and 42 of the Act — as well as incidents where expired products were confiscated in Masvingo.
Looking ahead, Mr Mudereri said the commission intends to complement enforcement with education initiatives aimed at reducing repeat violations, especially among small and emerging enterprises.
He said the CPC would this year intensify efforts to curb consumer fraud while promoting greater accountability among traders, with expanded education programmes for both consumers and businesses.
The commission has broadened its outreach activities to cover urban and rural areas, targeting young people, senior citizens, marginalised communities and persons with disabilities. The programme is also designed to help traders better understand their legal responsibilities and avoid penalties linked to minor but costly compliance lapses.
Mr Mudereri said the CPC would continue collaborating with businesses, consumer groups and other regulatory bodies as part of a whole-of-Government strategy to promote fairness and transparency in the marketplace.
“Our responsibility is to shield consumers from unfair or deceptive practices, while supporting a business environment that is open, compliant and sustainable,” he said.
Business
Zimbabwe Tobacco Exports Record Strong Start to the Year
Zimbabwe’s tobacco exports have recorded a strong start to the year, with earnings rising sharply in the first weeks of trading. Latest figures from the Tobacco Industry and Marketing Board (TIMB) show that export revenues reached US$233 million by January 16, representing a 182 percent increase from the US$83 million earned during the same period last year.
The Far East remained Zimbabwe’s largest and most lucrative market, both in terms of volume and value. The region imported 20 million kilogrammes of tobacco worth US$189 million, translating to an average price of US$9,26 per kilogramme. Although the Far East accounted for 70 percent of total export volumes, it contributed a higher 81 percent of total export earnings, making it the best-paying destination.
Europe ranked second after purchasing 2,9 million kilogrammes of tobacco valued at US$17,8 million, while the European Union (EU) followed in third place, importing 2,1 million kilogrammes worth US$11 million. Average prices stood at US$6,14 per kilogramme for Europe and US$5,41 per kilogramme for the EU, compared to the premium prices offered by the Far East.
Other markets, including Africa, the Americas, and the Middle East, occupied the fourth, fifth, and sixth positions, respectively. Together, these regions bought 3,6 million kilogrammes of tobacco valued at US$14,3 million.
Meanwhile, statistics from the Zimbabwe National Statistics Agency (ZimStat) indicate that in November 2025, tobacco exports were valued at US$260,221 million. Tobacco contributed 25 percent of the country’s total export earnings during the month, ranking second after semi-manufactured gold, which accounted for 42 percent.
ZimStat Balance of Payments and Finance Statistics Manager, Ms Mable Chimhore, said tobacco products ranked highly among Zimbabwe’s exports to regional and international markets. She noted that tobacco, whether partly or wholly stemmed, was the second-largest export to the Southern African Development Community (SADC).
“Among the top ten products exported to SADC in November 2025 were nickel mattes (74,6 percent), tobacco partly or wholly stemmed (4,4 percent), and coke (4,1 percent),” she said, adding that these products accounted for 83 percent of the total export value of US$237,8 million.
Ms Chimhore also highlighted tobacco’s dominance in exports to the European Union, where it made up 68,3 percent of Zimbabwe’s total export value in November 2025. Other key exports to the EU included industrial diamonds (13,2 percent) and ferro-chromium (7,0 percent), collectively contributing 89 percent of exports worth US$28,1 million.
In addition, tobacco ranked second among Zimbabwe’s exports to the African Continental Free Trade Area (AfCFTA). The leading exports to AfCFTA markets included nickel mattes (74,4 percent), tobacco (4,7 percent), coke and semi-coke of coal (4,1 percent), and nickel ores (3,9 percent), together accounting for 88 percent of exports valued at US$238,5 million.
Zimbabwe exports a wide range of tobacco products, including flue-cured tobacco, burley, dark-fired, oriental tobacco, and tobacco refuse, in both stemmed and unstemmed forms. The country also exports manufactured tobacco products such as cigarettes, cigars, cigarillos, smoking tobacco, homogenised tobacco strips, and tobacco extracts.
The TIMB has encouraged investors to take advantage of Zimbabwe’s 17 billion cigarette-stick production capacity, noting that current production stands at about four billion sticks. Increased investment in value addition is expected to help the country achieve its target of 30 percent value addition, as it works towards building a US$60 billion tobacco industry.
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