Govt avails ZWG85m to revive industry
LIVINGSTONE MARUFU
The Government has approved ZWG85m in concessionary funding for 15 manufacturers, stepping up efforts to revive industrial investment, deepen domestic value chains and reduce the economy’s reliance on imports.
The funding is being disbursed through the Industrial Development Fund (IDF), which has a total allocation of ZWG101m for 2026 and is administered by the National Venture Capital Company of Zimbabwe (NVCCZ).
Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube told Business Times on the sidelines of last week’s post-Mid-Term Budget Review meeting that the fund was designed to give manufacturers access to longer-term, cheaper capital to retool, expand production and strengthen their competitiveness.
He, however, did not disclose the identities of the 15 manufacturers benefiting from the funding.
“The manufacturing sector is benefiting from the IDF, with ZWG85m having been approved for 15 companies, of which ZWG33.1m (40%) has already been disbursed during the first half of 2026 out of the budgeted ZWG101m,” Professor Ncube said.
The government is betting on renewed industrial investment to support its Vision 2030 ambitions, with manufacturing output projected to grow 5.2% this year.
Capacity utilisation among large-scale manufacturers improved from 52.2% in 2024 to 61.2% in 2025 and is projected to reach 63.5% this year, according to Treasury.
Professor Ncube said the Treasury was continuing to invite bankable applications from manufacturers seeking to expand, retool or modernise their operations.
The funding can be used to acquire new equipment, replace obsolete machinery, upgrade infrastructure, finance research and development and adopt new technologies.
The government also wants the fund to strengthen domestic value chains, particularly in agriculture-linked industries such as fertiliser, dairy, sugar, cotton and soya, by encouraging manufacturers to process more raw materials locally.
“The fund can be used to boost local production to replace expensive imports and empower competitive export-oriented manufacturing and finance operational requirements, research and development, and the adoption of new technologies,” Professor Ncube said.
The IDF loans are being offered at a concessionary interest rate of 15% a year, with repayment periods of up to 36 months. Manufacturers and agro-processors in all 10 provinces are eligible.
The initiative comes as Zimbabwe seeks to increase industrial production and reduce its import bill, while improving the competitiveness of local companies.
Treasury said the banking sector was also continuing to channel significant funding towards productive sectors. As at the end of June, 74.8% of total bank loans had been directed towards productive activities, including agriculture, mining, manufacturing and distribution.
But industry representatives said the impact of the IDF would depend less on the size of the allocation than on the speed and efficiency with which the money reaches companies.
Ephraim Chawoneka, vice-president of the Zimbabwe National Chamber of Commerce for the Mashonaland Region, welcomed the government’s macroeconomic stabilisation efforts but said delays in accessing funding remained a major constraint.
“The disbursement of the IDF is an area of concern. When you look at the capacity of that fund, it is not enough. We also have issues to do with the efficiencies of disbursing that fund,” Chawoneka said.
“One would expect a faster drawdown on the industry funding. We should actually be talking about scaling up that fund to higher figures.”
Chawoneka said implementation remained a major concern for businesses operating in an illiquid market, arguing that the government needed to ensure that approved industrial funding translated into actual investment on the factory floor.
