Source: Manufacturing sector not ready for AfCFTA – herald
Sikhulekelani Moyo, sikhu.moyo@chronicle.co.zw
BUSINESS experts have emphasised the urgent need for strategic investment in infrastructure, innovation and capacity building, to prepare Zimbabwe’s manufacturing sector to fully participate in and benefit from the African Continental Free Trade Area (AfCFTA).
This follows revelations by the Confederation of Zimbabwe Industries (CZI) that only 29 percent of the country’s manufacturing sector is prepared to trade under the flagship AfCFTA agreement.
According to CZI, Zimbabwe has yet to commence preferential trading under the AfCFTA framework, as it has not fulfilled certain prerequisites required of a state party. A key outstanding requirement is the official gazetting of the country’s market access offer.
Commenting on the matter, Bulawayo businessman and former Zimbabwe National Chamber of Commerce (ZNCC) Matabeleland Region vice-president, Mr Louis Herbst, said under President Mnangagwa’s Vision 2030, Zimbabwe is emerging as a promising market with significant potential to benefit from AfCFTA. However, he noted that the current levels of preparedness reveal both challenges and opportunities.
“A recent assessment shows that only 29 percent of manufacturing firms are ready to participate in AfCFTA trade, highlighting the need for strategic investment in capacity building and infrastructure,” said Mr Herbst.
He said that the textile sector, in particular, demonstrates optimism — likely due to better existing facilities and experience — pointing to the country’s potential for growth.
“Key to unlocking this potential is improving transport networks — air, sea and road — to reduce costs, boost competitiveness and facilitate access to regional markets for Zimbabwe.”
Mr Herbst stressed that strengthening logistical infrastructure is essential to prevent economic dependence on larger, more dominant economies that often exploit smaller nations through trade imbalances, debt, and foreign influence, thereby undermining true economic independence.
He further noted that to position Zimbabwe as an attractive and resilient player, the country must prioritise technological innovation.
“Upgrading manufacturing processes with modern technologies, embracing Industry 4.0, and establishing innovation hubs will enhance productivity and quality standards,” he said.
“Reliable energy and water supplies, including clean energy solutions, are critical to lowering operational costs and attracting green investments aligned with sustainable development goals. Fair trade policies within AfCFTA are vital to ensuring smaller economies like Zimbabwe can compete on an even footing.”
He said that adjusting tariffs, supporting small and medium-sized enterprises (SMEs), and leveraging intra-African trade mechanisms will help promote equitable growth and reduce reliance on external markets.
Mr Herbst concluded that a comprehensive approach — including skills development, financial support and infrastructure expansion — is necessary to build local capacity and competitiveness. This, he said, is key to protecting against monopolistic environments and must remain a responsibility of AfCFTA to ensure market convergence.
“Zimbabwe’s future success under AfCFTA hinges on targeted investments in innovation, infrastructure and fair trade practices. With strategic efforts, the country can transition into a robust regional player, fostering a resilient and inclusive economic landscape that benefits from the continent’s shared growth and integration,” he said.
Amid a shifting global economic landscape characterised by rising geopolitical tensions and increased trade protectionism, regional peers have been urged to urgently embrace AfCFTA and accelerate regional integration as a springboard for resilience and a driver of Africa’s economic transformation.
African economies are not immune to the growing threat of tariff escalations and evolving trade restrictions, which have intensified more than ever before. This underscores the importance of regional trade blocs and the need for a vibrant regional integration agenda.
Speaking at the recently held ZimTrade Intra-Africa Trade Fair (IATF) roadshow launch, CZI Matabeleland Chapter president, Mr Stephen Ncube, said the IATF will present opportunities for the private sector to prepare industry for trade under AfCFTA.
“This is particularly important given that the manufacturing sector is still operating below its full potential. The 2024 CZI Manufacturing Sector Survey revealed that capacity utilisation declined by 0,9 percentage points to 52,3 percent.
“This slight drop indicates a growing proportion of idle equipment, with nearly half of existing industrial plants currently not in use. The survey also revealed that only 29 percent of the manufacturing sector firms are adequately prepared to begin trading under the AfCFTA,” said Mr Ncube.
Mr Ncube said a breakdown by subsector showed that textiles, beverages, paper and printing and rubber and plastics, were among those assessed, with the textile subsector emerging as the most optimistic and ready to engage in AfCFTA trade.
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