Bulawayo has emerged as Zimbabwe’s most formalised province for business activity, significantly outperforming all other regions in the formalisation of enterprises. This is according to preliminary findings from the 2023 Economic Census conducted by the Zimbabwe National Statistics Agency (ZimStat), which reveal that 40.4 percent of the city’s 15,840 businesses are now formal—well above the national average of 23.9 percent.
In contrast, only 59.6 percent of Bulawayo’s businesses are classified as informal, making it the city with the lowest rate of informal operations in the country. Nationally, 76.1 percent of the 204,798 total establishments are informal. These figures underscore Bulawayo’s steady economic transformation and growing reputation as a centre of regulatory compliance and structured enterprise.
Economists and business experts attribute the city’s positive trajectory to its historical industrial foundation, coupled with targeted efforts by both central and local government to promote business registration, investment, and formal sector growth.
“This is a very strong signal that Bulawayo is responding well to the national formalisation agenda,” said economist Alice Chikonzi. “Having over 40 percent of businesses formalised increases investor confidence, strengthens the city’s tax base, and creates an enabling environment for decent jobs and long-term economic planning.”
Chikonzi also pointed to Bulawayo’s strategic location as a key advantage. “Bulawayo sits on major trade routes connecting Zimbabwe with South Africa, Botswana, and Namibia. With its industrial legacy, infrastructure, and skilled workforce, the city is well-positioned to anchor Zimbabwe’s re-industrialisation and export drive under Vision 2030.”
Bulawayo Leads Zimbabwe in Business Formalisation, Sets Benchmark for Economic Growth
The benefits of formalisation are being felt not only by policymakers but also by small-scale traders who have moved into formal trading spaces. Vendors operating in legalised markets say registration has improved their security, access to financing, and ability to plan for the future.
Prisca Ncube, a trader in the city centre, said: “Being a formal trader gives me peace of mind. I don’t have to run from municipal officers anymore. I can apply for loans, stock properly, and I even get official receipts, which helps when I need to prove my income. It’s not just about rules—it’s about being recognised and growing.”
Analysts say higher formalisation levels mean improved tax collection for government and local authorities, which can then reinvest in infrastructure, service delivery, and social protection.
“All parties benefit,” said economic development expert Allan Mthunzi. “Formal businesses are easier to regulate and support. They contribute to national GDP, pay taxes, create secure jobs, and promote transparency in economic activities. This is critical for long-term resilience and sustainable development.”
By comparison, provinces such as Mashonaland Central (13.9 percent formalisation), Mashonaland East (17.8 percent), Midlands (18.8 percent), and Matabeleland South (20.5 percent) lag significantly behind, with over 75 percent of businesses operating informally. Even Harare, which hosts the largest number of business establishments—83,267—has only 23.8 percent formally registered, just below the national average.
While Bulawayo has made significant strides in business formalisation, its industrial performance remains uneven. According to ZimStat, the city achieved a 56.6 percent capacity utilisation rate in mining and quarrying—placing it fourth nationally—but only 42.8 percent in manufacturing, which is the third lowest in the country.
Experts say this highlights the need for accelerated investment in retooling, modernisation, and infrastructure upgrades to revive the city’s once-thriving manufacturing sector.
In Matabeleland North, despite its rich mineral resources—including coal, methane gas, and gold—mining capacity utilisation was the lowest in the country at 44.7 percent. However, manufacturing capacity there stood at 46.9 percent, slightly above the national average and indicating a gradual industrial revival.
Matabeleland South performed relatively better, with 48.9 percent utilisation in mining and quarrying and 47.0 percent in manufacturing, placing it fourth nationally in that sector.
Nationally, mining and quarrying capacity utilisation ranged from 44.7 percent in Matabeleland North to 68.1 percent in Masvingo, while manufacturing ranged from 40.9 percent in Midlands to a national high of 51.9 percent in Manicaland.
These patterns point to increased SME participation, along with the Government’s devolution programme efforts to drive localised industrialisation and inclusive growth.
The findings from ZimStat align with national policy goals outlined in the National Development Strategy 1 (NDS1), which prioritises formalisation, re-industrialisation, and economic diversification across all provinces. Authorities say building on Bulawayo’s success requires enhanced investment in energy infrastructure, transport logistics, and value chain development to fully unlock the city’s and the region’s industrial potential.
As the government intensifies support for local enterprise development, stakeholders are calling for expanded access to finance, skills training, and technology transfer to sustain the momentum in formalisation and ensure more inclusive economic growth.
With its strong formal sector base and historical role as Zimbabwe’s industrial hub, Bulawayo is now poised to take a leading role in the country’s economic transformation.
Source- Bulawayo24
