HomeBusiness DigestA third of Zim firms making US$5 000 annually

A third of Zim firms making US$5 000 annually

About 30% of registered companies in Zimbabwe are generating less than US$5 000 annually, the national statistics agency has said in a report also showing that the country has become a nation of sellers as its manufacturing capacity collapsed.

The Zimbabwe National Statistics Agency (Zimstat) conducted the first Central Business Register (CBR) inquiry between August, 2013 and June, 2014 which showed that only 3% of registered companies in the country had an annual turnover of over US$1 million.

“The information on annual turnover as at 31 December 2012 showed that about 30% of the establishments had an annual turnover of less than US$5 000 whilst about 3%had an annual turnover above US$1 million. Six establishments had less than US$50 000 as annual turnovers and employed between 100 and 500 employees,” Zimstat said in the report.

“The analysis also revealed that about 62,5% of the establishments had the majority of the shares owned by males. Only 17,8% of the establishments had the majority shares owned by females. 14% of the establishments reported that there was equal share ownership between males and females.”

While a recent Confederation of Zimbabwe Industries survey showed manufacturing sector operating at a third of capacity, about 59% of those companies were found to be in the wholesale and retail trade, repair of motor vehicles and motor cycles. Only 11% were in the manufacturing industry, Zimstat said.

Females are a minority in all industries and were completely absent in mining, quarrying, electricity and gas. Female-owned companies had fewer employees in all categories and no female-owned firms employed more than five hundred employees, the report shows.

The report covered all the establishments operating on a fixed location in Zimbabwe which were either registered or licenced or both by any arm of government, excluding government ministries. — Source.

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