ZIDA CEO calls for lower production costs to boost domestic manufacturing and SMEs

Business Reporter

The chief executive officer of the Zimbabwe Investment and Development Agency (ZIDA), Mr Tafadzwa Chinamo, has highlighted the critical need to lower the cost of production in Zimbabwe to support small and medium enterprises (SMEs) and encourage local manufacturing.

Speaking during a session on the New Corporate Landscape in Zimbabwe at the CZI Strategic Intelligence Forum—organised in partnership with Zimpapers—Mr Chinamo made the remarks while responding to a question from the floor.

The question queried what authorities were doing to help companies that use toll manufacturing to produce goods in lower-cost foreign jurisdictions such as China to get their products back into the domestic market at a reasonable cost.

This is because the law requires the requisite customs duties to be paid on goods produced under such an arrangement, which makes such arrangements less profitable.

Under the Customs and Excise Act [Chapter 23:02], the Zimbabwe Revenue Authority (ZIMRA) evaluates all incoming commercial items based on where they were processed and their final state upon arrival.

Mr Chinamo stressed that creating a more competitive local production environment would reduce the reliance of domestic businesses on foreign markets.

“Lower cost of production in this country [is essential] so that an SME doesn’t have to go all the way to China to have their things made,” Mr Chinamo said.

Drawing comparisons with global trade dynamics, Mr Chinamo noted that discussions surrounding production costs and industry protection are not unique to Zimbabwe.

“It’s not just a Zimbabwean thing. In the US, the president there is always going on about tariffs and tariffs because they want to protect local industries,” he said.

He highlighted that, given the strong domestic demand, there is a clear economic opportunity to encourage foreign investors and established manufacturers to set up local operations.

“If the demand is certainly there… I would like to think that it’s an opportunity for someone to actually then encourage those manufacturers in China or elsewhere to set up perhaps a smaller outfit here to cater for this market,” Mr Chinamo explained.

He added that empowering local enterprises through accessible manufacturing could unlock substantial growth potential, enabling Zimbabwean businesses not only to serve the domestic market but also to expand across the region and globally.

The three-day Strategic Intelligence Forum began this morning and runs until 9 October 2026 at the Hyatt Regency, The Meikles, in Harare.

The forum has brought together chief executives, board members, entrepreneurs, regulators, development partners and sustainability practitioners.

Source: ZIDA CEO calls for lower production costs to boost domestic manufacturing and SMEs – herald

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