Harare — Industry and Commerce Minister Ngobizitha Mangaliso Ndlovu has issued a stark warning to Treasury, revealing that his ministry is operating on a severe funding deficit that threatens to derail Zimbabwe’s industrialisation agenda.

Speaking at the 2027 National Pre-Budget Seminar, Ndlovu disclosed that the ministry’s budget bid of ZWG2.23 billion has been capped at a mere ZWG600 million, leaving a critical 73% shortfall.

Presenting his ministerial response to the Portfolio Committee on Industry and Commerce, Ndlovu outlined an aggressive “productive transformation agenda” for the 2027 fiscal year, but stressed that the ambitious targets are impossible to meet without immediate financial backing.

The ministry’s current allocation stands at ZWG142 million, a figure that pales in comparison to the ZWG111 million in additional resources already requested and ZWG59 million in accumulated creditors.

Despite the fiscal constraints—with only 23% of the approved allocation executed by September 2026, Ndlovu presented a performance snapshot showing a manufacturing sector that is struggling but showing signs of resilience. Manufacturing capacity utilisation sits at 61.2%, while the sector contributes 16.2% to GDP.

Manufactured exports have reached $593 million, supported by $3.5 billion in manufacturing investment.

At the heart of the 2027 agenda is a four-pillar strategy focused on productive transformation, economic empowerment, quality and consumer safety, and the development of local value chains.

Ndlovu emphasised that the ministry intends to “fund what grows the economy, strengthens local value chains and protects consumers.”

A key component of this strategy is the revival of local value chains, specifically targeting the vehicle, clothing, and fertilizer sectors.

The ministry has set ambitious local content targets of 25% by 2027, 35% by 2029, and 40% by 2030. To achieve this, Ndlovu announced plans to prioritise locally assembled buses, uniforms, and workwear.

Furthermore, the government is seeking to revive critical fertilizer manufacturers—Sable Chemicals, Zimphos, Dorowa, and ZFC—through $53.1 million in revival funding mobilised by the Mutapa Investment Fund. This comes as Zimbabwe has spent US$2 billion on fertilizer imports over the past six years, a trend the ministry is desperate to reverse to support agricultural productivity.

Consumer protection also features prominently in the 2027 priorities. Ndlovu announced the revival of 30+ trusts, with a target of 61 by 2027, backed by $6.1 million in seed capital. He also warned against the premature removal of the Consignment Based Conformity Assessment (CBCA) program, stating that “premature removal without alternatives risks weakening consumer protection,” and called for ring-fenced funding to build the capacity of the Standards Association of Zimbabwe (SAZ) over a two-year transition.

To unlock manufacturing competitiveness, the ministry is pushing for access to affordable capital, addressing high electricity costs, and simplifying business processes.

Ndlovu confirmed that 291 reviewed measures have already been implemented to reduce the cost of doing business, with a focus on engaging local authorities to address implementation gaps.

As the 2027 budget consultations continue, Minister Ndlovu’s message is clear: the government’s push for a stronger, more competitive industrial base will remain a pipe dream unless Treasury significantly widens the fiscal space.