Business / Economy
'Zimbabwe economy in intensive care,' says CZI president
02 Oct 2013 at 11:03hrs | Views
Capacity utilisation down to 39.6% in 2013: Ziscosteel picture by Aaron Ufumeli from NewsDay
Confederation of Zimbabwe
Industries president Charles Msipa told guests at the launch of the CZI Manufacturing Sector Survey report 2013 that the economy was in intensive
care.
The guest of honour, Minister of Industry and Commerce Mike Bimha said government is aware of the problems and is inviting business to help in proffering solutions for the economy.
Capacity utilisation for Zimbabwe's manufacturing sector in 2013 came down significantly to 39.6% from 44.9% in 2012 as the economy takes a knock due to political uncertainty and limited lines of credit, a recent survey has shown.
According to the Manufacturing Sector Survey 2013 report launched on Wednesday, the country's pharmaceuticals were the hardest hit with capacity falling to 20% from 58% in 2012.
Food, dairy and beverages manufacturers also registered a decline in capacity to 42% from 58.2% last year.
Of the 15 sectors covered by the survey, only four registered improved capacity utilisation while the balance recorded declines.
Bakers, grain millers, textiles and timber processors were the only sectors that recorded growth.
The survey showed that the manufacturing industry experienced varied constraints ranging from lack of working capital and low local demand to competition from imports.
Other notable factors working against the growth of the manufacturing sector include obsolete equipment, erratic supply of utilities such as water and electricity, shortage of raw materials and high cost of doing business.
The survey is a true reflection of corporate results that are being released by listed companies on the Zimbabwe Stock Exchange.
Most companies that reported results for the half-year ended June 30 2013 showed subdued revenue growth as well as losses.
The guest of honour, Minister of Industry and Commerce Mike Bimha said government is aware of the problems and is inviting business to help in proffering solutions for the economy.
Capacity utilisation for Zimbabwe's manufacturing sector in 2013 came down significantly to 39.6% from 44.9% in 2012 as the economy takes a knock due to political uncertainty and limited lines of credit, a recent survey has shown.
According to the Manufacturing Sector Survey 2013 report launched on Wednesday, the country's pharmaceuticals were the hardest hit with capacity falling to 20% from 58% in 2012.
Food, dairy and beverages manufacturers also registered a decline in capacity to 42% from 58.2% last year.
Bakers, grain millers, textiles and timber processors were the only sectors that recorded growth.
The survey showed that the manufacturing industry experienced varied constraints ranging from lack of working capital and low local demand to competition from imports.
Other notable factors working against the growth of the manufacturing sector include obsolete equipment, erratic supply of utilities such as water and electricity, shortage of raw materials and high cost of doing business.
The survey is a true reflection of corporate results that are being released by listed companies on the Zimbabwe Stock Exchange.
Most companies that reported results for the half-year ended June 30 2013 showed subdued revenue growth as well as losses.
Source - businessdaily
