Govt injects ZWG300m to spur industrial growth

CLOUDINEV MATOLA

The Government has stepped  up its engagement with the industrial sector as part of a broader strategy to accelerate sustainable economic growth, rolling out targeted measures and unlocking over ZWG300m in fresh funding to stimulate the productive sector,Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube,has said.

He said the administration remains committed to expanding Zimbabwe’s industrial base through collaborative efforts with private sector players, increased manufacturing output, and capital support for retooling and working capital.

Speaking at the Zimbabwe International Trade Fair (ZITF) in Bulawayo, Ncube said:
“Government remains committed to promoting domestic industrial growth, expansion of manufactured goods for both the domestic and export markets. Government has expanded engagement with industry on measures to promote industrialisation and growth.”

He said the expansion of manufactured goods would increase production for both domestic consumption and export markets, positioning Zimbabwe as a competitive player in regional trade.

To support this vision, Professor Ncube highlighted that government is making deliberate investments in energy infrastructure to provide reliable electricity supply—an essential enabler of industrialisation and beneficiation.

“In a bid to improve industrialisation,” Ncube said, “government is investing in new electricity capacity generation to ensure adequate energy levels for industrialisation and beneficiation.”

He also revealed that government continues to prioritise the capitalisation of financial institutions to enhance access to funding for industry, especially in terms of retooling and working capital.

“Through the central bank, the government continues to support initiatives for capitalisation of banks and strengthening financial sector resilience. Government continues to support the mobilisation of medium to long-term funding to support retooling and working capital for the local industry through capacitation of the Industrial Development Corporation of Zimbabwe (IDCZ) and support for lines of credit.”

He noted that commercial banks such as CBZ, NMB and CABS have secured lines of credit over the years to support Zimbabwe’s productive sectors.

In a major boost to liquidity for the industrial sector, the Reserve Bank of Zimbabwe (RBZ) launched the Targeted Finance Facility (TFF) in January 2025. The facility has already disbursed more than ZWG300m to banks to finance key economic sectors.

“In January this year, RBZ introduced the TFF to enhance banks’ support to productive sectors. This aims to address liquidity gaps in the banking sector and support economic growth by ensuring adequate working capital for key sectors such as agriculture, manufacturing and mining.

This facility was tailormade to provide funding to productive sectors of the economy that are struggling to access traditional banking resources.

To date, more than ZWG300m has been disbursed under this facility,” Ncube said.

He added that international partnerships remain crucial to unlocking Zimbabwe’s full industrial potential. Government’s re-engagement drive is expected to facilitate foreign direct investment (FDI) and technology transfer.

“International partnerships are crucial for unlocking industrialisation. Government’s engagement and re-engagement efforts aim to foster these relationships, attract foreign investment and facilitate technology transfer for a modern, competitive industrialised economy,” he said.

However, Professor Ncube cautioned that meaningful industrial transformation requires a comprehensive policy approach and multi-stakeholder collaboration.

“Zimbabwe’s industrialisation requires strong partnerships between government, the private sector and international community. With policy reforms and a commitment to value addition, the economy presents significant investment opportunities across diverse sectors,” he said.