Local companies are suspending imports of unviable machinery to preserve the much needed foreign currency on projects which yield increased earnings.
The tight foreign currency space within the economy has seen most companies putting on hold the importation or irrelevant equipment.
Zimbabwe Clothing Manufacturers Association director, Mr Admire Masenda said the limited foreign currency is emerging as a key challenge in terms of companies’ ability to improve production.
While the central bank is facilitating weekly foreign currency to strategic requirements of the nation, Bakeries Association of Zimbabwe president, Mr Ngoni Mazango says the sector is focusing on imports that have the capacity to generate more revenues.
The limited foreign currency space has also resulted in firms focusing on preserving the hard cash on long term viable capital projects, according to DZL Holdings executive Mrs Tracy Mutaviri.
Regulatory authorities have however expressed concern over the five percent export receipts from the manufacturing sector with the bulk being generated by gold, tobacco, platinum, diamonds, chrome among other goods and services.