Zimbabwe has significantly trimmed its import bill from South Africa by more than US$140 million in the first seven months of the year, a development that reflects a strong rebound in the domestic manufacturing sector and a gradual shift from consumption dependency to local production.
Figures released by the national trade development and promotion organisation, ZimTrade, show that imports from South Africa fell by over six percent, declining from about US$2.3 billion in the January-to-July period of 2024 to just over US$2 billion during the same stretch this year.
The decline is particularly striking in the grocery sector, where imports have dropped sharply as locally produced goods increasingly dominate supermarket shelves. Industry experts say this trend highlights the resilience of the country’s manufacturing sector, which has steadily expanded capacity to meet domestic demand for basic commodities.
While machinery continues to account for the bulk of imports from South Africa, the changing structure of the import basket indicates that Zimbabwe is gradually transforming from a consumptive economy into one that is more production-oriented and self-sufficient.
Economic analysts say the development carries significant implications for the country’s broader economic trajectory.
“A huge import bill is not good for a nation as it reflects the failure by the domestic industry to innovate business systems and come up with workable strategies that enhance productivity in an economy like Zimbabwe,” explained Confederation of Zimbabwe Industries (CZI) Chief Economist, Dr Cornelius Dube. “Maximising output by industry has a net positive impact towards reducing the burden of reliance on externally produced goods. Judging by the latest findings from ZimTrade, one can see that the increased availability and reforms within the manufacturing sector are yielding the desired results, leading to significant improvements in the overall balance of trade with one of our largest trading partners, South Africa.”
Dr Dube added that the next challenge for Zimbabwe’s industry is to scale up production to not only sustain domestic markets but also position itself more competitively in export markets. “By so doing, it means more business growth opportunities that cascade into overall development value chains,” he noted.
Another economic commentator, Dr Zack Murerwa, echoed these sentiments, stressing that the decline in imports demonstrates rising confidence among Zimbabweans in locally manufactured products.
“The trend reflects a situation whereby the economy is recovering and as such, there are notable strides from the manufacturing industry that have anchored production of goods leading to the fall in imports,” said Dr Murerwa. “It is basically a notable achievement as Zimbabwe forges ahead with reforms that are premised towards increasing foreign currency receipts. While balancing the initiative with reduced imports, going forward, the government and the private sector should continue with the ease of doing business reforms that will feature a competitive edge in the domestic production process, thereby enhancing service delivery for the benefit of the nation.”
Zimbabwe Cuts South Africa Import Bill by US$140 Million as Local Industry Gains Strength
The positive developments come on the back of government policies designed to stimulate industrial recovery. Key measures include support for value addition, incentives for retooling in manufacturing, and the promotion of import substitution through deliberate localisation strategies. These policies have been complemented by the resilience of local companies, many of which have managed to withstand years of economic turbulence and are now regaining lost ground.
Despite the decline in imports, South Africa remains Zimbabwe’s largest trading partner within the Southern African Development Community (SADC) region. The neighbouring country continues to supply critical machinery, fuel, and other industrial inputs that underpin production in Zimbabwe. However, trade experts argue that the current trajectory opens the possibility of rebalancing the relationship, with Zimbabwe aiming to grow its exports into South Africa and reduce the structural trade deficit.
Observers say the reduced import bill could also ease pressure on Zimbabwe’s foreign currency reserves. By sourcing more goods locally, the country conserves scarce forex resources, which can be redirected towards critical imports such as energy, industrial equipment, and raw materials. This shift, they argue, could provide the economy with greater stability and flexibility at a time when global markets remain volatile.
For consumers, the improvement in local production has translated into wider availability of domestic products and, in some cases, more affordable prices compared to imported goods. Local companies have also begun to benefit from improved brand loyalty as shoppers increasingly prefer homegrown products.
However, analysts caution that sustaining the current momentum will require consistent policy support, greater investment in technology, and robust infrastructure development to ensure local industries remain competitive. Challenges such as power shortages, high production costs, and limited access to long-term finance continue to weigh heavily on the manufacturing sector.
Still, the reduction in the South African import bill is being hailed as a milestone achievement for the Zimbabwean economy, symbolising both resilience and a renewed focus on self-reliance.
As Dr Murerwa put it, “The foundation has been laid. The challenge now is to build on this progress by consolidating reforms and ensuring the industrial sector continues to expand its role as a driver of growth, jobs, and foreign currency generation. If Zimbabwe maintains this trajectory, the future could see a more balanced and sustainable economy that is less vulnerable to external shocks.”
With South Africa still firmly positioned as Zimbabwe’s dominant trading partner, the onus is now on local industries to build competitiveness not just for import substitution, but also to capture new export opportunities across the region.
Source- ZBC
