By Nqobani Ndlovu
The ghosts of industry still linger in Harare’s once bustling industrial Graniteside area, evoking fond memories of the good old times in Zimbabwe.
Where the air once hummed with the drums of machinery and the pride of local manufactured goods, it now buzzes with a different kind of energy dominated by Chinese traders and middlemen selling all types of low cost import plastic ware.
The skeletal remains of old factories stand shoulder-to-shoulder with brightly lit warehouses turned into mini-retail shops overflowing with plastic buckets, synthetic textiles, and mass-produced imports.
Investigations by CITE revealed that the Chinese traders and their middlemen have carved out a parallel United States dollar only economy in what was once one of Harare’s industrial heartbeats.
The vibrant, almost chaotic, storefronts that now characterise the Graniteside industrial area offer a veneer of prosperity, a bargain-hunter’s paradise.
Despite the colourful displays of cheap goods in the plastic ware bazaars that now line up Bessemer, Strand and Dhlela Way roads, underneath lies an unsettling transformation where a two-tier economy has taken root.
On one level are the cash-rich importers, insulated from the local currency’s volatility where the Chinese traders are refusing to accept the local currency in its various forms from mobile money, swipe cards to ZIG notes, effectively operating outside the formal economy.
Efforts to obtain comment from several Chinese-owned plastic ware businesses operating in Graniteside were unsuccessful, with shop managers and representatives declining to comment when approached by CITE.
On the other side, are the struggling local manufacturers choked by power cuts, punitive exchange rates, and the very red tape that seems bypassed by the new arrivals.
Several Chinese nationals have set up plastic factories in Graniteside industrial area, selling everything from buckets and tubs to packaging materials and plastic kitchenware.
Zimbabwe has seen imports of plastic ware from China skyrocket in the past few years with United Nations COMTRADE database showing that plastics worth US$65.2 million landed from the Asian country last year, up from just US$10.9 million in 2012.
While the growth of the plastic material sector has provided ordinary Zimbabweans with cheap goods, small-to-medium local retailers and manufacturers say they are being pushed out of business.
Cheap Chinese plastics distorting market
Praise Musiyiwa, a local plasticware retailer, said the influx of Chinese plastic products has distorted the market with low-priced goods.
“We are now forced to accept the local currency, even though we buy the utensils in foreign currency from the Chinese traders and their middlemen; we are struggling to break even,” Musiyiwa said.
Unlike traditional businesses that rely on Zimbabwe’s formal wholesale and retail chains, many Chinese plastic companies are allegedly operating outside the conventional distribution models, selling in bulk directly to vendors across the country, and other informal markets.
Precious Chizengeni, who runs a small plastics distribution shop in Mbare close to Graniteside, said customers were rushing to cheap Chinese products, which were most often of poor quality.
“The problem is not just the price. Some of the products are substandard and don’t last long, but customers choose them because they are cheap,” Chizengeni said.
“I used to source from local manufacturers and make decent margins.
“Now Chinese factories are selling directly to vendors and wholesalers at rock-bottom prices, we cannot match them.
“Local manufacturers are scaling down or closing all together. We are losing our industrial base.”
Other traders reiterated that Chinese owners or their local middlemen operated many plastic ware shops in the capital, delivering goods in unbranded vehicles, offering discounts, and undercutting local suppliers.
“We have two shops, one in Graniteside and the other one in town. We buy from the Chinese,” a local trader, Pride Danga, said.
“There is a lot of competition as many plastic shops are opening.”
Cheap plastic ware boon for hawkers
Nevertheless, the boom in low-cost plastic ware sales has also created opportunities for various hawkers including pushcart operators in Graniteside, who charge up to US$2 to transport goods from the shops to the Mbare market for customers making bulk purchases.
This growing demand has turned pushcart services into a thriving side business, particularly for unemployed youths in the area.
Industry players and economic analysts offered different views about the once mighty Graniteside industrial area now turned into a giant warehouse for all types of plastic goods.
Consumer Protection Commission (CPC) research and public affairs manager, Kudakwashe Mudereri, said it was not in doubt that local manufacturing companies were being pushed out of competition by cheap plastic imports.
“We have also noted that if you look, as a commission, we have been going around because there is this sudden proliferation of these substandard products, which are coming into the country, and also it includes the plastics,” Mudereri said.
“And I think what we have also hinted in terms of compromising or affecting our local industry, it also tends to affect our local industries in terms of their business, in terms of their competitiveness.”
Mudereri raised a red-flag over unregulated use of plastic materials in the environment, which he said were against Zimbabwe’s aspirations to phase out the use of non-biodegradable waste.
“But then if you look at the Environmental Management Authority (EMA) regulations, I think there is a thrust towards a reduction in the use of plastics because in terms of the health, I think they have got an impact because they react,” he said.
“So we are saying we are going to work with EMA so that we check the regulations in terms of environmental regulations, the use of plastic regulations.
“If you look at where the world is going, it actually wants to reduce the use of plastics.”
Mudereri said this is necessary to also protect consumers.
“So what I can say for now is that we actually need to work with EMA, and then we just have a review of the framework that they have on the use of plastics,” he said.
“What is ultimately very important is to protect consumers against those hazardous substances so that we remove some of the dangers, which are associated through the use of plastics.”
Trust Chikohora, a businessman and chartered accountant said the local manufacturing sector was being suffocated by the cheap plastic imports.
“What is then important is to look at our own manufacturing sector and say what are the conditions in the economy that are there, you know, are they promoting the growth of the manufacturing sector, is it finance for capital expenditure, is it available at an affordable rate, is it long term in nature because manufacturing is long term in nature,” Chikohora said, before offering solutions on reviving and protecting the local manufacturing sector.
“What incentives do we give to manufacturing sector, new industries, are there any tax holidays, what are the licenses that are required, what are the labour issues concerned, is it competitive when you compare with the region and the rest of the world, are we creating a conducive and competitive environment in order to encourage manufacturing in Zimbabwe,” he added.
“Those are the questions to look at.
“Are the duties themselves supporting the manufacturing sector for areas where we believe we have got a competitive advantage; so we need to look at it holistically so that we come up with policies that promote the development of manufacturing in Zimbabwe.”
Opening Chinese bazaars vs churches
Harare-based economist Vince Musewe said there was need to strike the best balance between making it easy to start a business and formalisation.
“It is better for those Graniteside factories to be used for business than churches,” Musewe said.
Some business premises including those in the central business district now rent out to churches, mostly Pentecostal.
Musewe also touched on the need for tax reviews to formalise some informal plastic shops operating in Granitside.
“Of course there is the issue of tax and we need simplified tax including administration,” he said.
“The informal sector can be taxed but there must be incentives and they must see value in paying taxes such as better infrastructure and connectivity and removal of multiple levies, fees, and licences.
“This economy is failing to create new jobs for many reasons, the major one being lack of confidence in currency stability and high costs of doing business.
“The informal sector is the new economy. Economic and taxation policies must adapt to it.”
Confederation of Zimbabwe Industries (CZI) president, Danford Mutatshu, indicated said the proliferation of informal trading and import resale activities in areas like Graniteside was severely undermining the local manufacturing industry.
“This shadow economy, largely operating outside tax and regulatory frameworks, distorts market competitiveness, weakens domestic production capacity and leads to significant fiscal leakages through loss of tax revenue,” Mutashu said.
“Consequently, formal manufacturers and retailers/wholesalers face declining demand, while job creation and value addition within the local economy are stifled.”
Mutashu said revitalising the manufacturing sector requires a coordinated approach between government and industry.
“There is a need for deliberate policy incentives that prioritise local production through access to affordable financing, reliable energy supply and import substitution measures,” he said.
“Strengthening value chains and route to market strategies between manufacturers and formal retailers/wholesalers can drive demand for locally produced goods, while promoting innovation and technology adoption will ensure long-term sustainability and competitiveness.”
Mutashu said the CZR was advocating for structured dialogue between authorities, local business associations and informal traders to develop an inclusive framework that balances enforcement with empowerment.
“Policies should be tailored to safeguard domestic industries from unfair import competition while stimulating employment creation,” he added.
“Government can enforce tighter import controls on cheap substandard goods, strengthen standards enforcement through regulatory agencies and prioritise local procurement in both public and private sectors.”
Declining industrial output
Zimbabwe’s industrial output has declined significantly in the last two decades due to currency problems, sanctions by Western countries and policy inconsistencies.
The country’s has also lost the share of its major export markets in the region and abroad because of the proliferation of cheap Chinese products.
A look east policy that was put into place during the Robert Mugabe administration saw an influx of Chinese investors in Zimbabwe who are targeting all sectors of the economy.
Zhou Ding, China’s ambassador to Zimbabwe recently revealed that bilateral trade between the two countries doubled from US$1.9 billion in 2021 to U$3.8 billion in 2024.
Over 1 400 Chinese investors registered business in Zimbabwe since 2021, Zhou said.
According to the Zimbabwe Investment and Development Agency, close to 500 new Chinese businesses registered in Zimbabwe since January, with projected investments of US$2.5 billion.
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