Government Targets US$4,5 Billion Import Bill
Zimbabwe is moving towards introducing a new law designed to restrict the importation of goods worth about US$4,5 billion (approximately R81 billion) that authorities believe can be produced locally. The proposed legislation, known as the Local Content Act, is expected to be operationalised in 2027 and forms part of efforts to boost industrialisation, create jobs and reduce pressure on the country’s foreign currency reserves.
The proposed law follows the establishment of a Local Content National Steering Committee, chaired by economist Professor Gift Mugano.
Speaking to The Herald in an interview published on 8 June 2026, Prof Mugano said Zimbabwe’s current import bill was placing unnecessary strain on the economy.
“The starting point is that we have an import bill of US$4,5 billion worth of commodities that can be produced locally.”
He added:
“We are importing them because we don’t have a policy framework to stop that importation, which is unnecessary. It is becoming a burden on our fiscus and reserves because we are draining foreign currency unnecessarily.”
According to Prof Mugano, the proposed law will introduce enforceable local content requirements and create mechanisms to monitor compliance across different sectors of the economy.
Tissue Paper, Pharmaceuticals And Toothpicks In Focus
Authorities have identified several products that could potentially be manufactured locally instead of being imported.
These include tissue paper, toothpicks, chewing gum, pharmaceuticals and other consumer goods.
Prof Mugano highlighted some of the country’s major import expenditures.
“We cannot continue importing products such as toothpicks, chewing gum, tissue paper and pharmaceuticals when we have the potential to produce many of them locally.”
He said Zimbabwe spends more than US$200 million (about R3,6 billion) annually on tissue paper imports and over US$300 million (about R5,4 billion) on pharmaceutical imports.
Official trade figures also show that between 2021 and 2025, Zimbabwe spent more than US$140 million (about R2,5 billion) importing beauty, cosmetic and personal care products.
The Government is reportedly developing an artificial intelligence-powered certification and rating system that will assess companies based on their local content performance.
Economists Back Industrialisation Drive
Economist Dr Davison Gomo said strengthening domestic manufacturing could help create jobs and address illegal trade.
“The reason these goods come into the country is that our internal manufacturing capacity is still well below where it should be.”
He added:
“The objective is to build a functioning manufacturing sector that can absorb young people coming out of colleges and universities and create products that can compete in local, regional and international markets.”
Another economic commentator, Wendy Mpofu, described the proposed legislation as a potentially significant development for Zimbabwe’s industrial sector.
“The Local Content Act has the potential to become one of the most important industrial policy interventions since independence.”
Authorities expect studies covering all 16 identified sectors to be completed before draft principles for the legislation are finalised later this year.
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