Government Pushes Local Industry to Compete Under AfCFTA

The government says local companies must improve product quality and increase the use of domestic materials if the country is to fully benefit from trade opportunities under the African Continental Free Trade Area (AfCFTA). Speaking at the Buy Zimbabwe ZimBrands 2026 Awards recently, Deputy Finance Minister David Kudakwashe Mnangagwa said the government was deliberately pursuing industrialisation under the National Development Strategy 2 (NDS2) to expand manufacturing and boost exports. He said manufacturing currently contributes around 18% to Zimbabwe’s gross domestic product (GDP), with authorities aiming to raise that figure to 25% under the development strategy.

What we would want as Government is to make sure that the confidence and trust deficit that might exist closes,” he said. Mnangagwa said industrial capacity utilisation had risen steadily since 2019 to between 56% and 57%, while locally produced goods now account for nearly two-thirds of products sold in major retail stores. “We now have 66%, that’s two-thirds of the products in all stores being Zimbabwean,” he said.

He said the achievement was significant given Zimbabwe’s dollarised economy and competition from imports, counterfeit goods and smuggled products. “Being competitive against imports, counterfeit goods and smuggled goods, and still being able to fill the shelves with two-thirds of our products is something to be proud of as Zimbabweans,” he added. Deputy Industry and Commerce Minister Raj Modi said Zimbabwean manufacturers now needed to focus on innovation and higher standards to compete regionally.