Capacity Utilisation climbs as output and business confidence improve
Zimbabwe’s manufacturing sector continued its upward trajectory in the second quarter of 2025, with capacity utilisation rising by 4.1 percentage points to 57.3%, up from 53.2% recorded in the first quarter. This is according to the latest Business Tendency Survey released by the Zimbabwe National Statistics Agency (ZimStat).
Presenting the findings, ZimStat’s manager of industry statistics, Kuda Chiguma, noted that combined capacity utilisation for the entire manufacturing sector, including small to medium enterprises (SMEs), reached 48.2%, slightly up from 47.7% in the previous quarter. SMEs alone operated at 46.5% capacity during the same period.
Chiguma reported a cautiously optimistic outlook among manufacturers, with 25.3% expressing confidence in the business climate going forward. In the mining sector, capacity utilisation edged up to 56%, compared to 55.4% in the first quarter, with 25% of respondents in that sector also showing optimism about the general business environment.
Production trends remained largely stable across both sectors. In manufacturing, 50% of respondents said production levels remained unchanged, while 23% reported an increase. In mining, a significant 70.3% of respondents said production levels were steady.
Employment levels showed similar stability, with 69.4% of manufacturers and 79.1% of miners reporting no changes in staffing.
Regarding order books, the outlook was generally positive. 56.8% of manufacturers and 78% of miners described their order books as normal for the season. However, perceptions around stock levels varied. Only 7% of manufacturers and 2.2% of miners believed that their finished goods stocks were in line with seasonal expectations.
For raw material stocks, 51% of manufacturers said levels were normal, compared to just 18.2% in the mining sector.
Looking ahead to the third quarter of 2025, most businesses expect price stability. 77.5% of manufacturers and 48.4% of miners anticipate no change in selling prices. A minority — 11.1% of manufacturers and 7.7% of miners — reported improvements in supplier delivery times.
The report also highlighted strong performance in output. The Volume of Manufacturing Index (VMI) reached 158.25 in the second quarter of 2025, representing a 15.45% year-on-year increase from 137.07 in 2024.
Leading the growth was the foodstuffs sub-sector, which posted an impressive 63.59% rise in output, with an index of 190.45. The textiles sub-sector also saw modest gains, growing by 3.56% to an index of 62.46, up from 60.31 in 2024.
The latest figures reflect a manufacturing sector in recovery, buoyed by improved confidence, stable employment, and rising production — a promising sign for Zimbabwe’s broader economic outlook.
