KEY POINTS

• Manufacturing capacity utilisation reached 63.2% in the third quarter of 2026.

• The figure rose from 57% in 2025.

• High production costs, financing constraints and power supply remain challenges.

Zimbabwe’s manufacturing sector recorded an improvement in capacity utilisation during the first nine months of 2026, with factories operating at 63.2% of their installed production capacity by the end of the third quarter.

Industry and Commerce Minister Mangaliso Ndlovu announced the latest figure, saying it represented an increase from the 57% recorded in 2025.

The improvement points to increased activity across the country’s manufacturing industry as the government continues to pursue policies aimed at strengthening domestic production and expanding industrial output.

Manufacturing activity gains momentum

Ndlovu said capacity utilisation had risen to 61.2% in the first quarter of 2026 before climbing further to 63.2% by the end of the third quarter.

The latest performance suggests that manufacturers have gradually increased the use of their existing production facilities, although the sector is still operating below its full installed capacity.

Higher capacity utilisation can allow companies to increase output without necessarily making equivalent investments in new factories and equipment. It can also help manufacturers spread operating costs across larger production volumes.

The government has identified industrial growth, local production and value addition as important components of its broader economic development strategy.

Challenges remain for manufacturers

Despite the improvement, Zimbabwe’s manufacturing sector continues to face challenges that could limit further expansion.

Manufacturers have previously identified high production costs, limited access to affordable financing, unreliable electricity supplies and dependence on imported raw materials as major constraints.

The Confederation of Zimbabwe Industries’ 2025 survey also reported capacity utilisation of 55.9% for that year, alongside a 13% increase in manufacturing output. The survey identified financing constraints, infrastructure problems and the cost of doing business among the issues affecting industrial competitiveness.

Sustaining the latest improvement will therefore depend on manufacturers’ ability to secure reliable inputs, maintain production and access markets for locally made goods.

The increase to 63.2% provides an indication of improving industrial activity, but further progress will require investment and measures that address the operating difficulties facing businesses.