Manufacturing Capacity Ultilisation Rises to 32,3%

THE Confederation of Zimbabwe Industries (CZI) says capacity ultilisation in the manufacturing sector for the first six months of the year was at 32,3%.

According to the 2009 CZI Manufacturing Sector Survey, the sector has improved from below 10% largely due to the dollarisation of the economy. CZI president Kumbirai Katsande said despite improvements in economic activity, government should still come up with bold decisions to ensure that the manufacturing industry thrives.

“The challenge is what to do next. Unless we build from where we are there is a risk of us going backwards again,” Katsande said.

 

The survey also showed that 83% of companies that took part did not make any investment owing to lack of funds to undertake such projects.

“There is notable improvement in the country’s economy but the environment needs to be supported by the political will as recent political uncertainty has slowed down economic activity,” he said.

A total of 89,2% of the respondents recorded a positive output growth while 10,8% recorded negative growth in output.

About 89,2% of the respondents recorded volume of exports growth greater than zero while 28% of the surveyed firms cited uncompetitive export markets as the major reason for not exporting during the first six months of the year.

High cost of production and the unavailability of working capital were also cited as hindrances to exports as well as incapacity to import enough requisite inputs to produce high quality goods demanded in international markets.

“If we are to do a score card of the inclusive government there is more that has been done than that has not been done but we continue to focus on what has not been done to our detriment,” he said.

This year’s survey was launched under the theme ‘Cost competitiveness key to industrial recovery’.

 

Paul Nyakazeya

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