Industrialists have called on Government to increase budgetary allocations to the manufacturing sector, arguing that it should be positioned as the main driver of Zimbabwe’s economic growth.
Speaking at the second edition of the 2026 National Budget Breakfast Meeting held in Bulawayo on Monday, Confederation of Zimbabwe Industries (CZI) past president and United Refineries Limited Chief Executive Officer, Dr Busisa Moyo said current budget provisions for industry remain inadequate relative to the scale of programmes required to stimulate industrial expansion.
The Bulawayo meeting followed the inaugural Post-Budget Breakfast Meeting held in Harare last week.
“Based on the budget, the allocation to industry appears very small given where we are and the programmes needed to support manufacturing and industrial growth. We would like to see a much healthier figure going forward,” Dr Moyo said.
He noted that signals from the 2026 National Budget point to a slight slowdown in manufacturing growth, emphasising that the quality of manufacturing-led growth is critical to sustaining the economy.
“From the budget, one can see manufacturing growth slowing slightly. The quality of manufacturing-led growth is important. We believe the manufacturing sector should be leading economic growth, and as CZI, we strongly believe in value addition,” he said.
Dr Moyo warned that Zimbabwe risks falling behind its regional peers, many of which are investing heavily in industrial development.
“Neighbouring countries are placing strong emphasis on industry, and we certainly do not want to be left behind. Primary production is important, but earnings from it tend to be highly variable,” he said.
Turning to investment flows, Dr Moyo said foreign direct investment (FDI) and private sector credit remain insufficient to support higher levels of economic growth.
“Zimbabwe’s lending to the private sector stands at about 4 to 8 percent, amounting to roughly US$2.5 billion. With FDI at around US$3.2 billion, we are financing only about 12 to 15 percent of private sector requirements,” he said.
Economic analysts also highlighted that increased budgetary support for manufacturing would improve capacity utilisation, attract new investment, and strengthen value chains across agriculture and mining. They warned that with regional economies accelerating industrial development, underfunding of manufacturing could weaken Zimbabwe’s competitiveness and limit private sector-led growth.
