Business / Economy
Government urged to modernise industries
21 Nov 2012 at 05:23hrs | Views
The government should implement measures that facilitate recapitalising and retooling of local industries inn order to address the ever increasing current account deficit, an expert said on Tuesday.
A current account is the difference between total imports and exports of goods, services and transfers and in Zimbabwe it is believed to be over US$3 billion.
Quoting Confederation of Zimbabwe Industries (CZI) past president Joseph Kanyekanye, New Ziana said the current account deficit was not sustainable for the economy, hence the government should prioritise capacitating productive sectors.
"Low industrial productivity is significantly widening the deficit. The government should prioritise growth of the manufacturing sector," he said.
Kanyekanye said the country had become a net importer of goods and without improving capacity utilisation the negative current account deficit would continue to widen.
In its 2012 annual manufacturing sector survey report, the CZI established that manufacturing sector capacity utilisation had slumped from 57. 2 percent in 2011 to 44. 2 percent.
Kanyekanye said industries world wide were investing heavily in new technology to reduce production costs.
"New technologies will go a long way towards capacitating local industry to produce more at lower unit costs, thereby becoming more competitive.
"At the moment industry is using obsolete plant and equipment which is prone to frequent breakdowns," he said.
A current account is the difference between total imports and exports of goods, services and transfers and in Zimbabwe it is believed to be over US$3 billion.
Quoting Confederation of Zimbabwe Industries (CZI) past president Joseph Kanyekanye, New Ziana said the current account deficit was not sustainable for the economy, hence the government should prioritise capacitating productive sectors.
"Low industrial productivity is significantly widening the deficit. The government should prioritise growth of the manufacturing sector," he said.
Kanyekanye said the country had become a net importer of goods and without improving capacity utilisation the negative current account deficit would continue to widen.
In its 2012 annual manufacturing sector survey report, the CZI established that manufacturing sector capacity utilisation had slumped from 57. 2 percent in 2011 to 44. 2 percent.
Kanyekanye said industries world wide were investing heavily in new technology to reduce production costs.
"New technologies will go a long way towards capacitating local industry to produce more at lower unit costs, thereby becoming more competitive.
"At the moment industry is using obsolete plant and equipment which is prone to frequent breakdowns," he said.
Source - New Ziana
