Manufacturing

Zimbabwe’s highly diversified industrial base provides the investor with a number of opportunities.

  • The broadly based manufacturing sector produces in excess of 6,000 products or commodities ranging from food and clothing to fertilizers and chemicals, metal products of all kinds, electrical machinery and equipment and motor vehicle assembly.
  • The manufacturing industry is closely linked to agriculture with an excess of 60% of manufacturing value added either related to agro-industry or to the provision of inputs to the agricultural sector.
  • We have attached at the end the macro economic indicators for Zimbabwe document, and for further information on the manufacturing industry read on

 

Clothing and Textiles

  • The clothing sector in Zimbabwe comprises of registered companies who are members of the Zimbabwe Clothing Council.
  • Zimbabweans own the majority of the companies and there has been an influx of indigenous clothing manufacturers over the past few years.
  • However, only a small number – less than 10% manufacture for export despite the growing regional market and inroads in past years into new markets mainly in Europe.
  • There is a great deal of opportunities to develop this side of the industry through investment in CMT work with a sound marketing base.
  • The Zimbabwe clothing worker is highly skilled and able to produce clothing to world standard requirements and importantly at competitive prices.
  • Other areas for investment would be direct investment of management and technical skills or the establishment of joint venture manufacturing and marketing operations.
  • The textile industry has gone through a down period and requires investment in new technology which will enable it to compete with imports into the Southern African region from the Far East.
  • There are opportunities for investment on a joint venture basis into textile design which will enable the industry to attract customers from a wider market base.
  • Within the industry there is under-utilized capacity, which could be developed with external partners into more, specialised manufacture through an improved marketing strategy.

 

Food

  • Opportunities for investment are available within the various sub-sectors of the food manufacturing industry.
  • The processing of meat products for both local and export markets is encouraged.
  • They are also investment opportunities to further develop the diary processing industry through modern packaging and design.

 

Oil Processing and Milling

  • A large area for joint venture investment lies within the oil processing industry where an influx of small-scale indigenous producers would benefit from new technology and the establishment of regional or international marketing organizations.
  • Generally the milling industry has capacity which could be developed to promote exports into the region.
  • Further opportunity exists in the growing demand for cereals and snack-type products to service not only supermarket requirements but there are many new franchise outlets.

 

Timber and Furniture

  • Opportunities for investment in manufacturing are within the sub-sectors such as the timber industry which comprises timber producer; saw millers, timber processors, material manufacturers and timber traders.
  • Furniture manufacturing in Zimbabwe is without doubt one of the established sub-sectors and certainly one of the most diversified.
  • Zimbabwean manufacturers produce a full range of furniture for the home, office and garden which are manufactured from wood, metal and plastic.
  • Opportunities for the investor exist within some of the smaller and older established business where there is a need for the injection of _finance, technology and development of new markets.
  • There is scope for development – perhaps on a joint venture basis – of specialised manufacturing concerns to produce footwear or luggage from exotic hides and skins available locally at competitive prices.

 

Chemicals

  • The chemical industry of Zimbabwe offers a varied range of products including fertilizers, pesticides, paints and varnishes, pharmaceuticals, soaps and cleansing products, perfumes and cosmetics.
  • There is great potential for this industry to improve into the more technical application for manufacturing, such as the production of core extruded products, laminations or woven products, polyvinyl chloride and polyethylene barrier _films, housing application, car parts and furniture.
  • The local market for fertilizers and pesticides offers opportunity for further development to provide additional manufacturing capacity for local demand and export within the region.
  • There is potential for investors to increase production of ethanol and opportunity to the investor for increased production for new export markets, the introduction of new technology and licence to produce new products.

 

Pharmaceuticals

  • Pharmaceuticals are well catered for with a wide range of local and international brands being manufactured and marketed locally and within the region.
  • However, an opportunity exists for the development of medical products from locally grown, natural raw materials including the controlled growth of prescribed drugs for the industry.
  • Metals such as nickel, chrome, copper and platinum are products of the Zimbabwean mining industry but most of these are exported in a raw state.

 

Metals and Minerals

  • In recent years processing plants have been developed but there is opportunity for conversion of raw materials into processed or semi processed products for export.
  • The utilisation of regional natural resources and development of transport corridors on a build Operate and transfer basis will provide opportunities for the investor to participate in such development or trade at more competitive prices.
  • In this instance most metals are traded through the mineral Marketing Corporation of Zimbabwe but this does not preclude investors working in partnership with this organisation.
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