De-industrialization sinks Zim economy

HOPES for the country's economic revival might be a pie in the sky as the country continues to reel under serious deindustrialization.

According to the 2014 Confederation of Zimbabwe Industries Manufacturing Survey released yesterday capacity in the manufacturing sector fell by a marginal 3,3 percent to 36,3 percent.

"The slow down being experienced in the economy at large has not spared the manufacturing sector. In 2014, average capacity utilisation continued to decline, shedding 3,3 percentage points to 36,3 percent.

"Quite telling is the prolonged effects of power cuts and costs, liquidity challenges, low domestic demand and many others on the performance of the manufacturing industry," CZI said in the report.

The survey covers manufacturing sectors from companies drawn from Mashonaland, Manicaland, Matabeleland and Midlands.

Officially launching the survey, the Minister of Industry and Commerce Michael Bimha said Government is aware of the constraint that industry is facing and commends those who have shown resilience.

"We don't want to shy away from those challenges. We don't want to gloss over them. We have to face them right in the face and say yes we have challenges," said Minister Bimha.

The report analysed all sectors in terms of capacity utilisation and the specific challenges that each sub sector is facing.