Zimbabwe is at a crucial turning point where the interplay between infrastructure, consumption patterns and production capabilities can redefine its economic landscape. With our abundant resources being exploited for the benefit of the few elite and our potential unrecognised, UZA believes that Zimbabwe is capable of driving transformative change that addresses outdated infrastructure, enhances market access and aligns consumption with sustainable production practices. Zimbabwe’s industrial sector remains significant to our economy despite ongoing challenges. Some of the most important industrial factories include ZIMASCO (Zimbabwe Mining and Smelting Company), Delta Corporation, Zimbabwe Iron and Steel Company (ZISCO), Hwange Colliery Company, Sable Chemicals and Dairibord Zimbabwe Limited.
As of 2024, ZIMASCO remains one of Zimbabwe's leading producers of ferrochrome, a key product in the global steel industry. Based in Kwekwe, ZIMASCO operates four furnaces and produces around 150,000 tonnes of ferrochrome annually. Most of its production is exported, primarily to markets in Asia, particularly China, which is the world's largest consumer of ferrochrome. This has been part of a long-standing export strategy to take advantage of Zimbabwe’s rich chromite ore deposits.
However, despite the large-scale production and exports, the tangible benefits to Zimbabweans remain a topic of concern. While ZIMASCO does provide employment opportunities and contributes to the country’s GDP, issues such as labour disputes and environmental degradation have raised questions about how the wealth generated is distributed locally. Furthermore, infrastructure at ZIMASCO has faced challenges due to years of underinvestment. This affects the company's ability to expand operations or improve productivity, limiting its broader economic impact.
Efforts to revive and improve ZIMASCO's infrastructure, including partnerships with the National Railways of Zimbabwe (NRZ) to enhance transport logistics, have helped, but overall, the company faces challenges in delivering broader societal benefits. Much of the revenue from exports contributes to the national treasury, but direct improvements in local living conditions, industrialisation or development have been minimal.
The Zimbabwe Iron and Steel Company (ZISCO), once a major player in Zimbabwe’s industrial sector, remains in a state of dysfunction. ZISCO's operations halted in 2008 due to financial difficulties, mismanagement and outdated infrastructure, and despite numerous efforts to revive it, the company has yet to resume meaningful production. ZISCO was once one of Africa’s largest integrated steel producers, capable of producing 1 million tons of steel annually. However, the outdated infrastructure, combined with frequent equipment breakdowns, renders it non-operational today. In 2024, there were attempts to revive ZISCO, with various foreign investors expressing interest, including the Chinese firm R&F and the Kuvimba Mining House, a government-controlled entity. These efforts, however, have stalled due to complex negotiations, misaligned interests and Zimbabwe’s challenging business environment.
Due to ZISCO’s continued inactivity, the company produces no significant steel outputs that benefit Zimbabweans directly. The revival of ZISCO is seen as crucial to Zimbabwe's industrial and economic future, given the potential it holds to produce steel for local industries and export markets, thus driving job creation and economic growth. Without active production, ZISCO's potential contribution to Zimbabwe’s GDP and employment remains untapped.
Hwange National Park, one of Zimbabwe's premier wildlife reserves, is facing significant exploitation, particularly by foreign entities, including Chinese companies. While the park is a treasure trove of biodiversity, it is increasingly being overshadowed by industrial activities, particularly coal mining and infrastructure projects. Foreign investments, especially from Chinese firms, have led to extensive mining operations in and around Hwange. These activities not only threaten the ecological balance but also disrupt the habitats of numerous species, including elephants and various birds. Large-scale mining operations are depleting natural resources and polluting the surrounding environment, posing severe risks to wildlife and local communities.
Despite the promise of economic growth, the reality is that Zimbabwe is not reaping the benefits from these exploitative practices. Most profits from mining ventures are funnelled back to foreign investors, leaving local communities without meaningful compensation or development. The jobs created are often low-paying and temporary, failing to provide sustainable livelihoods for the people of Hwange. Moreover, the government has struggled to enforce environmental regulations, leading to a lack of accountability for these foreign companies. As a result, the degradation of Hwange continues, with little regard for the long-term consequences on both the environment and the local economy.
Sable Chemicals, Zimbabwe’s sole producer of ammonium nitrate fertiliser, has faced significant infrastructure challenges, primarily due to ageing equipment and energy shortages. As of 2023, the plant was producing around 80,000 metric tonnes annually, far below its original capacity of 240,000 tonnes. One of the key limitations is the high cost of electricity, as Sable previously used an energy-intensive electrolysis process to produce hydrogen but had to shift to importing ammonia due to power shortages.
Sable Chemicals’ output is crucial for Zimbabwe’s agricultural sector, particularly for maize farming, which forms the backbone of the nation’s food security. However, much of the fertiliser is either overpriced for local farmers or exported to regional markets such as Zambia and South Africa, often reducing the benefits to ordinary Zimbabweans. High operational costs, coupled with the lack of foreign exchange for maintenance, have affected its contribution to national agriculture and industry expansion.
Despite some economic challenges, including inflation and power shortages affecting production, there are other companies that thrive. Dairibord Zimbabwe Limited is one of the leading dairy companies in Zimbabwe. It has been focusing on expanding its product range, including milk, yoghurt, and cheese. The company has invested in modernising its processing facilities to improve efficiency and product quality. Dairibord produces approximately 60 million litres of milk annually. They also produce a variety of dairy products, with a significant portion going to local markets, contributing to food security. Dairibord supports thousands of local dairy farmers, enhancing rural livelihoods and contributing to employment. Delta Corporation is Zimbabwe's largest beverage manufacturer, producing a range of alcoholic and non-alcoholic drinks, including beer, soft drinks and bottled water. In 2023, Delta reported producing over 1 million hectoliters of beer and significant quantities of soft drinks. The company is also expanding its market reach within the SADC region. Delta Corporation plays a crucial role in the economy by creating jobs, supporting local agriculture through sourcing of raw materials like sorghum and maize, and contributing significantly to government revenue through taxes.
To a larger extent, the Zimbabwean industrial sector needs to be revived and the policies need to be reviewed. UZA advocates for a comprehensive approach to enhance production capabilities through infrastructure improvements, support for local industries and the adoption of sustainable practices. We will prioritise the development of value chains, promoting agro-processing and facilitating access to financing for small and medium enterprises.
