The manufacturing sector capacity utilisation marginally slowed down by 2.3 percentage points to 45,1 percent this year from 47,4 percent last year, despite available investment opportunities.
Presenting the State of Manufacturing Sector 2017 Report to captains of industry and commerce in the capital on Wednesday, Confederation of Zimbabwe Industries Chief Economist, Ms Daphne Mazambani said although production volumes rose by six percent, the marginal drop was mainly accounted for by a few industries.
Reserve Bank of Zimbabwe Governor Dr John Mangudya says the manufacturing industry needs to effectively utilise foreign currency to ensure the economy moves in the right direction.
However, the Minister of Industry and Commerce Dr Mike Bimha says there are still opportunities for growth.
The report shows South Africa remains the largest competitor to Zimbabwean producers followed by China, while Zambia is also coming strong as a competitor to local manufacturers.
CZI survey results highlights:
- Capacity utilisation marginally drops to 45.19 this year from 47.4 percent last year
- 39 percent of manufacturing equipment is 20 years old, 3.70 percent is less than a year old
- 28 percent of equipment sourced from SA
- Less than 15 % of Zim manufacturers’ output being exported. This is compared to 55 percent in SA
- 50 percent of local manufacturers are not exporting
- Zambia main export destination