Zimbabwe is intensifying its push for import substitution and industrialisation through a new Consumer Protection Policy (2026–2030) and Local Content Strategy (2026–2035), but the success of the twin policies will ultimately be measured not by their launch, but by whether they reduce the country's dependence on imported goods and increase the competitiveness of local industry.

The policies come at a time when manufacturing is showing signs of recovery but remains constrained by high production costs, reliance on imported raw materials and underutilised industrial capacity.

Latest industry data show manufacturing capacity utilisation rose to 56% in 2025, the highest level recorded in 16 years, up from 52% in 2024 and 36% in 2019. The improvement signals increased industrial activity, yet it also means nearly half of Zimbabwe's installed manufacturing capacity remains idle.

At the same time, manufacturers continue to rely heavily on imported inputs, with more than half of the raw materials used by industry being sourced from outside the country. This reflects one of the biggest challenges facing the Local Content Strategy: increasing domestic production requires strengthening entire value chains rather than simply encouraging consumers to buy Zimbabwean products.

Speaking on the two policy frameworks, President Emmerson Mnangagwa said consumer protection and local production are central to the country's industrialisation agenda.

"The roll-out of the Consumer Protection Policy (2026–2030) is timely and further complements our Industrialisation Agenda by safeguarding consumer rights, promoting fair markets and entrenching public confidence in locally produced goods and services."

Consumer confidence has increasingly become an important factor in industrial growth, particularly as Zimbabwe seeks to expand domestic manufacturing. Stronger consumer protection can improve confidence in locally manufactured products, provided local producers consistently meet quality, safety and pricing standards.

President Mnangagwa said the Local Content Strategy would provide the framework for expanding production, increasing value addition and deepening domestic supply chains.

"The Local Content Strategy (2026–2035) is poised to be a key pillar supporting increased production, value addition, innovation and export growth. It is my expectation that this Strategy will strengthen local value chains in strategic sectors such as pharmaceuticals, fertilisers, iron and steel, textiles, leather, cement, packaging, automotive products, furniture and consumer goods."

The sectors identified by the Government are also among Zimbabwe's largest import categories, illustrating the scale of the opportunity for import substitution.

Industry estimates indicate that Zimbabwe could reduce its import bill by about US$2.5 billion annually if domestic manufacturers expanded production in sectors where local capacity either already exists or can be developed.

Pharmaceuticals, fertilisers, iron and steel, processed foods, packaging materials and consumer goods account for a substantial share of imports despite significant domestic production potential.

Recent investments suggest that import substitution is already taking place in some industries.

New cement production capacity is expected to reduce dependence on imports. However, Zimbabwe still imported more than US$12 million worth of cement in April 2026, indicating that domestic demand continues to exceed local supply.

Agriculture has also demonstrated the benefits of increased local production. Zimbabwe has achieved wheat self-sufficiency in recent seasons, while horticultural exports grew from US$59.8 million in 2024 to US$181.7 million in 2025, reflecting the impact of investment in value-added agricultural production.

Similarly, the mining sector has increasingly shifted from simply expanding production to maximising export earnings through higher output and greater beneficiation. Gold export earnings reached US$3.76 billion in 2025, supported by record deliveries of 46.7 tonnes.

These gains illustrate that targeted investment and supportive policies can reduce import dependence and increase export earnings. However, replicating that success across manufacturing will require addressing structural constraints that continue to affect industrial competitiveness.

Access to affordable long-term finance remains limited, electricity shortages continue to increase production costs, and manufacturers still depend heavily on imported machinery, chemicals and intermediate inputs.

These challenges mean that expanding local content will require sustained investment across supply chains rather than isolated interventions.

The Consumer Protection Policy also introduces another dimension to industrial policy by recognising that increasing local production alone is insufficient if consumers lack confidence in the quality of domestic goods.

Strengthening product standards, enforcing consumer rights and improving regulatory oversight could help local manufacturers compete more effectively with imported products, particularly in sectors where price differences have historically favoured foreign goods.