Zimbabwe To Aggressively Pursue Agro-Processing And Mineral Beneficiation Under NDS2
Zimbabwe has set its sights on agro-processing and mineral beneficiation as pivotal drivers of economic transformation within its new five-year economic blueprint, the National Development Strategy 2 (NDS2), spanning 2026 to 2030. This focused strategy underscores the government’s commitment to shift the economy from raw material exports towards high-value manufacturing, thereby fostering industrialisation, job creation, and import substitution to build a competitive export sector.
Economic analyst Mr Tobias Musara highlights the core of this vision: “Mass production, processing and local consumption of our own goods are the true drivers of industrialisation. This cycle creates jobs, fuels import substitution and ultimately transforms Zimbabwe into a competitive exporter.”
A critical area of attention is the fertiliser industry, where the government aims to reduce a staggering US$2 billion import bill. This will be achieved by revitalising local industrial players such as Chemplex Corporation, Sable Chemicals, and Dorowa Minerals. Complementary projects like the Shawa Hills phosphate plant and the Mkwasine coal-to-fertiliser plant are poised to produce millions of tonnes of basal and top-dressing fertilisers annually. These developments are expected to position Zimbabwe as a key regional exporter and enhance agricultural productivity nationally.
In the textile and cotton sectors, a bold “cotton-to-clothing” strategy seeks to elevate local lint processing from under 20 percent today to 60 percent by 2030. Protective measures include a ban on second-hand clothing imports and a mandate that at least 30 percent of all cotton lint be reserved for local spinners. The 2026 National Budget introduces a formidable 300 percent tariff on selected textile imports to shield and stimulate investments. Most notably, the revival of David Whitehead Textiles with a US$35 million investment epitomises this policy thrust, creating much-needed breathing space for domestic manufacturers to retool and scale production.
Finance Minister Professor Mthuli Ncube clarifies the rationale behind these tariffs during a post-Budget address in Harare: “The duties we have imposed … we are being driven by the need to support local production and local investments. This is an incentive to invest locally and create jobs. It is not an incentive to punish (other players) or anything like that. There is a need to drive domestic investment.”
The tobacco industry, in which Zimbabwe ranks as the world’s sixth-largest producer, is also undergoing significant transformation. The government intends to raise local value addition from a mere 2 percent to more than 30 percent by expanding cigarette manufacturing and nicotine extraction. This shift seeks to capture more value within the domestic economy instead of exporting raw leaves.
Parallel reforms are targeting the mining sector’s structural dynamics to ensure mineral wealth contributes directly to national industrialisation. Under NDS2, all lithium concentrate exports will be banned from January 2027, compelling miners to process lithium ore into high-value compounds such as lithium carbonate and hydroxide—key inputs for the global lithium-ion battery market.
Zimbabwe’s iron and steel agenda is anchored on the DISCO plant in Manhize, promising a vertically integrated industry capable of producing stainless steel and industrial bolts for local and regional markets. Furthermore, platinum group metals (PGMs) producers must now evolve beyond matte production to isolate individual metals like platinum, palladium, and rhodium locally to curb the prevalent “mine-to-port” export model.
To promote economic resilience and national health security, the government is revitalising pharmaceutical manufacturing aiming to locally produce 60 percent of essential medicines by 2030, supported by a new Pharmaceutical Revolving Fund. The motor vehicle industry is also slated for a renaissance, targeting annual assembly of 10,000 vehicles with a strong emphasis on electric vehicle production and local component manufacturing to reduce costly imports.
Other sectors such as leather and timber are undergoing value chain upgrades, transitioning from exporting raw hides and logs to the manufacture of high-quality footwear and industrial wood products.
During the National Competitiveness Commission annual general meeting, Parliamentary Portfolio Committee Chairperson on Industry and Commerce, Mr Clemence Chiduwa, stressed that integrated value chains are fundamental to industrialisation and job creation. He further emphasised improving the ease of doing business as essential to keep domestic products competitive, especially with Zimbabwe’s participation in regional trade agreements such as the African Continental Free Trade Area (AfCFTA).
“We have got the African Continental Free Trade area that is coming, and at the moment, I don’t think we are ready for it,” Mr Chiduwa remarked. “But we have time (to prepare otherwise); we are not going to be just spectators. So, (the) NCC has a serious role to play to make sure that our industries, the value chains, remain active.”
The NDS2 envisions that these structural transformations through investments across key value chains will drive sustainable and inclusive economic growth. The strategy aims for annual average real GDP growth rates exceeding 5 percent, projecting Gross National Income per capita to rise above US$4,000 by 2028 and an estimated US$4,900 by 2030.
Case study: Zimbabwe’s Chimanimani district has seen emerging agro-processing cooperatives led by youth groups who are now involved in cotton ginning and small-scale textile production. Supported by government grants and training, these enterprises embody the NDS2 vision, creating jobs and diversifying incomes at the grassroots level.
Zimbabwe’s focused push towards agro-processing and mineral beneficiation under NDS2 promises a vibrant industrial future. With emphases on value addition, job creation, and regional competitiveness, the country is poised to transform its raw material advantage into sustainable economic growth, uplifting farmers, youth, women, and entire communities alike.
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