Zimbabwe is targeting a significant boost to industrial output in 2027, underpinned by a pipeline of identified investment projects valued at $3.56 billion. Finance Minister Mthuli Ncube said several ventures are already under way and are expected to expand productive capacity, deepen local processing of raw materials, and increase the supply of domestically manufactured goods.

The figures were presented at the ZANU-PF National Conference held in Chinhoyi, according to reports by the Zimpapers media group. The investment portfolio is dominated by metals and electrical equipment but also spans fertilisers, chemicals, cement, mineral processing, agro-industry, food and beverages, vehicles, textiles, and pharmaceuticals.

Among the largest identified investments are those of Dinson Iron and Steel, valued at $1.5 billion; Super Smelters/Steelmate, at $1 billion; Xintai-Palm River, at $342 million; and Sandawana Lithium, at $270 million. These figures represent announced project valuations and do not necessarily reflect new disbursements to be made in full during 2027.

The anticipated expansion comes against a backdrop of recovering industrial activity, supported by growth in food processing, beverages, tobacco, cement, and metals. Ncube said capacity utilisation has risen from 45.1% in 2017 to 61.2% in 2025, and is expected to exceed 63.5% in 2026.

“The manufacturing sector is the largest contributor to real gross domestic product growth and is undergoing a genuine transformation,” Ncube said, also highlighting the contribution of steel production by Dinson Iron and Steel.

Production and New Projects

Indicators presented by Ncube show the manufacturing production volume index rising from 112.48 points in 2022 to 159.1 points in 2026, representing an increase of 41.4%. Annual growth rates cited were 9.2% in 2023, 14.5% in 2024, 6.9% in 2025, and 5.7% in 2026.

“With production already 41.4% above the 2022 level, the sector is well positioned to build on this momentum as investment in industrial capacity continues,” Ncube said.

Among initiatives planned for the coming year is a project by Fabriforge Engineering, with production start-up targeted for the first quarter of 2027. The investment amount for this project has yet to be confirmed.

The expansion of the steel sector is expected to strengthen the supply of materials to construction, engineering, and other industrial activities. The realisation of the projects will depend on reliable electricity supply, competitively priced raw materials, working capital, and market access. The government has also identified the removal of certain trade barriers as a measure to improve competitiveness.

Lithium Bolsters Export Revenues

Ncube linked the industrial outlook to developments in the mining sector, which supplies raw materials to steel producers and mineral processing plants. He said gold production has doubled since 2017, and coal output has also increased.

The minister cited growth of between 30% and 46% in the production of platinum and other platinum group metals. He acknowledged, however, declines in nickel and diamond output, which the government is seeking to reverse.

On lithium, Ncube highlighted a recovery in prices following the sharp decline caused by a global oversupply, while cautioning that market volatility remains a factor.

“Zimbabwe’s lithium exports reached $782 million in the first half of 2026, an increase of 230% compared with the same period a year earlier,” he said. Domestic processing is also broadening the range of higher-value products, including lithium sulphate.

Ncube said long-term demand would continue to be supported by electric vehicles, battery energy storage, and the global energy transition.