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.