Zimbabwe Must Reform to Save Industry-Kanyekanye

By Evans Jona

Mutare – Zimbabwe’s industries can survive, but only if urgent reforms are implemented, veteran industrialist Dr Joseph Kanyekanye warned on Thursday at the Africa Innovation and Industrialization Conference 2025 at Africa University.

“The notion that authorities take control of export earnings discourages production. Exchange control has historically collapsed firms, and it risks doing so again,” Dr Kanyekanye told delegates, emphasizing the link between currency stability and business growth.

Dr Kanyekanye, former president of the Confederation of Zimbabwe Industries and head of Alliance Holdings, said Zimbabwe’s economy is dominated by informal activity, which undermines formal business. “Formal businesses are struggling to survive, unable to compete with untaxed street traders,” he said.
He also criticized bureaucratic licensing. “You need a licence for almost everything – imports, exports, even basic commercial activity. This duplication slows business, reduces efficiency, and increases costs. It must change,” he said.

On industrial development, Dr Kanyekanye highlighted opportunities in the forestry sector. “We are throwing away up to 60 percent of timber fibre by sticking to outdated processing models. Zimbabwe should move into medium-density fiberboard and other value-added products. That is how you create jobs, save foreign currency, and build industries that last,” he said.

He warned that artificial intelligence could disrupt the workforce. “Ninety percent of our jobs are repetitive tasks. Those are exactly the jobs AI will replace. Without preparation, the impact will be severe,” he said.

Access to finance remains a critical challenge. “Our banks are micro-banks. They cannot fund large-scale industrial projects. For sustainable industrialisation, we must create an environment that allows foreign investors to come in,” Dr Kanyekanye said.

He also highlighted consumer habits. “We are importing what we can produce locally. Until we support domestic manufacturing, our industries will continue to struggle,” he said, calling for a shift in national consumption patterns.

Land and forestry issues were also discussed. “There is an accumulation of unplanted areas, nearly half of the current planted area, which limits output. The solution is to replant, grow fibre, and focus on value addition,” Dr Kanyekanye said.

Concluding his address, he expressed cautious optimism. “Industry is under strain, but it is not extinct. With the right policies, innovation, and investment, we can revive our industries, create jobs, and strengthen our economy. Zimbabwe has potential, and it is time to realise it,” he said.

Dr Kanyekanye’s address underscored the need for immediate action in currency reform, deregulation, investment facilitation, and industrial innovation to unlock Zimbabwe’s economic potential.

The Africa Innovation and Industrialization Conference 2025, hosted by Africa University in partnership with the Confederation of Zimbabwe Industries (CZI), brought together business leaders, policymakers, and academics to discuss strategies for industrial growth, innovation adoption, and economic transformation across the continent. The conference aimed to highlight opportunities for sustainable industrialization in Africa, address challenges facing local industries, and explore technological innovations, including artificial intelligence and digital infrastructure, that can enhance competitiveness and productivity in the region.