Policy inconsistency and rising costs hinder Zimbabwe's industrial growth

Conflicting regulations, currency instability, and increasing fuel costs are undermining growth and competitiveness. Data from the Zimbabwe National Statistics Agency shows annual ZiG inflation rose to 4.8% in April, largely due to two fuel price increases. Local content strategy expert Tararama Gutu highlighted that multiple statutory instruments, some of which conflict with each other and regional trade protocols, contribute to policy inconsistency.

Competition and Tariff Commission spokesperson Prosper Ziyadhuma noted that high borrowing costs limit investment, particularly in textiles, and emphasized the need for policy consistency and effective implementation. Industry and Commerce permanent secretary Tadeous Chifamba stated that authorities are strengthening enforcement of local content policies, aiming to shift from a voluntary approach to a structured and accountable system. The Local Content Strategy 2026–2035 seeks to boost industrialization by expanding domestic production and value chains, reducing import dependence, and increasing local input utilization from approximately 30% to 75% by 2035, while also targeting a 5% annual growth in manufactured exports' contribution to output.