Staff Reporter
Government has unveiled a bold two-pronged strategy aimed at revitalising the pharmaceutical industry and strengthening grassroots economic empowerment, with a renewed push for import substitution and enhanced community benefits from natural resources.
Addressing journalists during a post-Cabinet media briefing this Tuesday, Minister of Information, Publicity and Broadcasting Services, Dr Jenfan Muswere, outlined key decisions under the Zimbabwe Industrial Reconstruction and Growth Plan (2024–2025), with a strong focus on the Pharmaceutical Value Chain.
“The pharmaceutical sector has been identified as a key priority area given its immense potential for growth and import substitution.
“The sector is expected to significantly reduce Zimbabwe’s reliance on imported drugs, cutting the medicines import bill from approximately US$220 million in 2020 to about US$100 million by 2025. At the same time, the Government aims to increase the share of locally produced essential medicines from 30% to 60% over the same period,” said Dr Muswere.
Dr Muswere highlighted the progress already achieved noting that as of 2023, Zimbabwe’s pharmaceutical market was valued at US$400 million.
“Since 2020, the local pharmaceutical value chain has shown remarkable growth. We have seen a rise in the percentage of locally produced essential medicines from 15% to 36%, while capacity utilisation has increased from 12% in 2020 to 51% in 2024.
“The sector has also recorded a 56% increase in the number of producers, rising from 9 in 2020 to 14 in 2024. Exports, though still lower than imports, rebounded by 15.6% between 2020 and 2024, increasing from US$4.5 million to US$5.2 million,” he explained.
To sustain this momentum, Government will introduce a Pharmaceutical Revolving Fund to provide affordable financing and reinstate VAT zero-rating on pharmaceutical products. Other support measures include strengthening local drug testing capabilities and prioritising the Sugar Content Tax to fund the production of essential medicines.
Meanwhile, on the economic empowerment front, Dr Muswerenoted that cabinet also approved new proposals to operationalisethe Community Share Ownership Trusts (CSOTs) and strengthen the Reserved Sectors policy.
“Community Share Ownership Trusts were created to ensure local communities benefit from the exploitation of natural resources in their areas. Government will now conduct a comprehensive review of the framework and offer corporate rescue support to struggling Trusts.
“Established under a 2013 legislative framework, 61 CSOTs were created, with 58 successfully registered. However, many have since struggled with financial sustainability and accountability,” explained Dr Muswere.
Dr Muswere emphasised the need for transparency and accountability.
“We will develop robust economic empowerment policies and regulations to ensure these Trusts are managed effectively. Publicising their existence and conducting comprehensive audits will also be prioritised,” he said.
These latest Cabinet resolutions reflect Zimbabwe’s broader strategy to boost industrial capacity, reduce imports, and drive inclusive economic development—ensuring no one and no place is left behind.
