Zimbabwe’s manufacturing sector recorded a four percent increase in capacity utilisation in 2025, reaching 55.9 percent from 52.3 percent in 2024, as exchange rate and inflation stability continue to support industrial growth.
The improvement was revealed during the Confederation of Zimbabwe Industries (CZI) Annual Manufacturing Sector Survey Report for 2025, released yesterday. The report indicates that the sector is on a growth trajectory, with sales volumes and turnover surpassing levels recorded last year.
CZI Chief Executive Officer, Mucha Mukanganwi said the prevailing macroeconomic stability is encouraging firms to expand production and improve operational performance.
“Capacity utilisation is a key factor in competitiveness. Firms operating below optimal capacity are less likely to benefit from economies of scale that support price competitiveness. In 2025, manufacturing capacity utilisation increased to 55.9 percent from 52.3 percent in 2024, reflecting the improved performance of the sector,” he said.
Despite the gains, Mukanganwi noted that the sector still has significant idle capacity, with about 44 percent remaining underutilised.
“This high level of underutilisation makes it difficult for the sector to compete effectively with regional and international counterparts that operate at higher utilisation levels,” he said.
The increase in capacity utilisation has been largely driven by investments in new machinery and equipment, enabling companies to enhance productivity and modernise operations.
Industrialist, Nancy Tawengwa Guzha said the sector has consistently upgraded its technological capabilities to improve competitiveness and is well-positioned for further growth.
“The manufacturing sector has been investing in technology to strengthen competitiveness. What is now needed is greater support for local production, reduced reliance on imports and full utilisation of existing trade agreements. The current stable economic environment provides a solid platform for sustained growth and increased industrial capacity,” she said.
According to the survey, key highlights of the sector’s performance include the continued dominance of projects in the beverage industry, growth in food processing, increased investment in modern equipment and rising production and consumption of locally manufactured products.
The findings underscore the positive impact of economic stability on industrial performance and support Zimbabwe’s broader ambitions under the National Development Strategy 2 to accelerate economic growth and industrialisation.
