Govt identifies 15 priority agro-industrial value chains

CLOUDINE MATOLA

Government has identified 15 priority agro-industrial value chains for targeted support and development, with authorities positioning industrialisation, mining and agricultural transformation as mutually reinforcing pillars of economic growth, Business Times can report.

Speaking at the Confederation of Zimbabwe Industries (CZI) 2025 Annual Manufacturing Sector Survey launch, Industry and Commerce Minister Mangaliso Ndlovu said agriculture and manufacturing are deeply interconnected, with farming supplying about 60% of industry’s raw material requirements while industry provides the key inputs needed to sustain agricultural production.

He said assessments of the priority value chains had uncovered supply gaps, infrastructure bottlenecks, import dependencies and investment opportunities that now require urgent intervention.

“Industrialisation, mining and agricultural transformation are mutually reinforcing pillars of economic development. It is therefore no coincidence that Government has identified 15 priority agro-industrial value chains for targeted support and development,” Ndlovu said.

“Agriculture supplies approximately 60% of the raw materials required by industry, while industry provides the essential inputs that sustain agricultural production.

“Our assessment of these value chains has identified critical supply gaps, infrastructure constraints, import dependencies and investment opportunities that require urgent attention. These findings are now informing targeted interventions designed to strengthen domestic production, accelerate value addition and beneficiation, improve productivity and enhance national competitiveness.”

Ndlovu also challenged the manufacturing sector to seize opportunities in mineral processing and beneficiation, noting that the mining industry remains heavily reliant on imported consumables, equipment and technologies.

He said Government’s decision to establish Special Economic Zones based on mineral endowments had created significant opportunities for downstream industries.

“This has informed the designation of Special Economic Zones based on mineral endowments and mining activities, creating significant opportunities for downstream industries. We therefore expect the manufacturing sector to take full advantage of these opportunities through increased participation in mineral processing and beneficiation,” he said.

“At present, the mining sector remains heavily dependent on imports of consumables, equipment, machinery and technologies. As a mining-intensive economy, Zimbabwe must progressively build domestic manufacturing capacity to sustainably supply the sector and reduce import dependence.”

Ndlovu said the strategy was aimed at ensuring that the country’s mineral wealth contributes meaningfully and equitably to national development.

The minister welcomed the growth in manufacturing exports recorded during the first quarter of 2026, saying it demonstrated that Zimbabwean products were increasingly competitive in regional and international markets.

However, he cautioned that manufactured goods still account for a relatively small share of total exports, underscoring the need for faster industrial upgrading, increased value addition and broader export diversification.

“The growth in manufacturing exports recorded during the first quarter of 2026 is encouraging evidence that Zimbabwean industry has the capacity to compete in both regional and international markets,” Ndlovu said.

“However, the contribution of manufactured goods to total exports remains below our expectations, highlighting the need to accelerate industrial upgrading, value addition and export diversification.

“This imperative becomes even more important in the context of the African Continental Free Trade Area, which presents one of the greatest economic opportunities of our generation. Access to a continental market of more than 1.4 billion people requires our industries to become more productive, innovative, efficient and export-oriented.”

To further support domestic industry, Government will progressively introduce mandatory local content thresholds in strategic sectors to stimulate production, deepen value chains, create jobs and reduce import dependence.

Ndlovu said Zimbabwe’s import bill remained unsustainably high and stressed the need for the country to produce more of what it consumes while exporting more of what it produces.

“The Government is determined to ensure that Zimbabwean industries derive maximum benefit from domestic economic activity. Accordingly, mandatory local content thresholds will be progressively implemented across strategic sectors to stimulate local production, deepen value chains, create employment and reduce import dependence,” he said.

“The current import bill remains unsustainably high and continues to place pressure on domestic industries. This situation cannot persist indefinitely. Zimbabwe must produce more of what it consumes and export more of what it produces.”

He added that Government would also leverage its procurement power to support industrial development, arguing that as the largest purchaser of goods and services in the economy, the State should act as a catalyst for local production and enterprise growth.

“Every procurement decision must contribute, wherever feasible, to the strengthening of Zimbabwe’s productive capacity,” he said.