Assessing the Effectiveness of Investment Related Industrial Policies on Manufacturing Growth in Zimbabwe

Abstract

This study examines the effectiveness of investment-related industrial policies in promoting the growth of Zimbabwe’s manufacturing sector. Despite a number of reform initiatives including the Zimbabwe National Industrial Development Policy (ZNIDP) and the establishment of the Zimbabwe Investment and Development Agency (ZIDA) manufacturing output has continued to stagnate and, in some subsectors, even decline, reflecting the prevailing structural and institutional weaknesses. By making reference to the dependency, structural adjustment, and resource curse theories, the study adopts an exploratory research design combining document analysis and a survey of key stakeholders from both the public and private sectors. The findings reveal that while Zimbabwe’s industrial policies are generally well-intentioned and aligned with national development goals, their implementation is undermined by macroeconomic instability, poor institutional coordination, insufficient infrastructure deficits, and perceived policy inconsistency. This study concludes that the ineffectiveness of these policies lies not in their design but in ineffective implementation. From this study, it is recommended that the Government of Zimbabwe not only streamline institutional mandates and strengthen M&E frameworks, but they must also prioritize investment in relevant infrastructure for industrial development (energy & logistics), as well as providing access to affordable finance. Finally, for policy development and formulation, there needs to be a deliberate shift from mere consultation to co-production.