promoting market linkages as well as adopting technological innovation. The economic decline since 2000 was
the unintended outcomes of the government populist policies associated with the FTLRP (Techfin Research,
2006). Huge levels of unemployment directly fed into the already ballooning informal economy as citizens
struggled to find income generating activities for household survival. During the period 2009-2011, the
economy enjoyed temporal stability of macroeconomic fundamentals but the liquidity crunch caused failure of
big companies to recover. Zimbabwe became the most informalised country in Africa and second from Bolivia
globally (Median & Schneider, 2018). ZIMSTATS economic census (2025), indicated that 76% percent
informalisation of the economic activities in 2025. SMEs have since become the engine of economic activity
in Zimbabwe and their participation highly integral for national development (Nyathi & Chikwala, 2024).
Informal sector activities by their nature are difficult to reign into the government revenue collection and
compliance system. However, real industry revival and retooling do not lie in formalising the informal sector
but in development and implementation of strategies that will lead to “go for broke” investments to resuscitate
and create new large scale companies. Government driven retooling schemes such as the one halted and
replaced VAT deferment in July 2022, that saw about 200 Bulawayo companies acquiring equipment and
technology that enhanced efficiency, increased production and employment should be re-introduced (MIC,
2023). Government and stakeholder roles of policy support, collaboration and partnerships as well as tacking
infrastructure deficits, water and sanitation problems and governance reforms are necessary for integrating
SMEs into the mainstream economy.
The Enhanced Import Substitution Industrialisation Strategy
Several sub-Saharan African countries have employed the import substitution industrialization (ISI) strategy to
promote local industries, increase self-sufficiency and reduce dependence on foreign production systems
(Ocorian, 2018). Zimbabwe alongside Ghana, Nigeria, Kenya and Ethiopia are implementing the ISI to
develop local industrialisation, development and boost domestic industries. As a strategy, the economic
concept of industrialisation involves the conceptualization and application of macroeconomic policies within
the national space to spur the domestic production of goods and services in place of reliance on imports
(Bruton, 1998 cited by Oluikpe, 2020). The ISI is a domestic economic policy aimed at replacing imports with
domestic production in order to promote locally driven economic growth. This ISI strategy is synonymous
with countries under sanctions as well as those with an unsustainable foreign imports bill. Zimbabwe
implemented ISI policies through Statutory Instrument 64 of 2016 aimed at promoting local production
following years of pressure from the Zimbabwe Democracy and Economic Recovery Act (ZiDERA), a US law
enacted in December 2001, aimed at supporting democratic change, promoting economic growth and restoring
the rule of law. Nigeria and South African economies incentivise local companies to ramp up production and
pride themselves in the consumption of local goods. Nigeria implemented import substitution policies that
mixed short-term results but strongly indicting a good long run outcome for the country. Domestic production,
ticked upwards and manufacturing sector gain significant capacity expansion due to increased local demand
(Oluipe, 2020). The ISI strategy usually faces challenges of systems inefficiencies, protectionism and limited
market size in most developing countries and Bulawayo re-industrialisation will not be unique once affected
by these.
Broadened engagement and reengagement drive
Broadening Zimbabwe's engagement and re-engagement drive is vital for the country's reindustrialisation
efforts, that seek to boost economic growth, attract investments and promote industrial development. Before
the economy weakened in the 1990s, Zimbabwe used to supply the European Union and Commonwealth
markets with approximately 40,000 tonnes of beef per annum, making the EU a primary market for her beef
exports. Zimbabwean agricultural, horticultural and floricultural exports to the EU accounted for 54% and
these trade linkages positioned and stabilised the Bulawayo industrialisation sector. There was however a
colossal decline of the economy characterised by plummeting industrial activity, spiralling inflation that
reached 238 sextillion percent by 2008, following implementation of the 2000 Fast Track Land Reform Policy
Programme (FTLRP) (World Bank, 2009). The IMF suspended the country from borrowing in mid-2001 due
to a high tendency of defaults on payments (IMF, 2001). Since 2018, the government has been on a drive to
revive the economy through engaging EU and Commonwealth markets capable of absorbing production output
from the country’s manufacturing sector including Bulawayo’s industrialisation sector. The engagement and