The capacity utilisation of Zimbabweâ€™s manufacturing sector has increased to 57,2% from levels below 10% last year in spite of economic challenges hindering productivity.
According to a 2011 Manufacturing Sector Survey unveiled in Harare to government representatives and members of the business community, the growth in the productivity levels of the manufacturing industry has mainly been a result of stable economic conditions.
Confederation of Zimbabwe Industries (CZI) Chief Economist, Mrs Lorraine Chikanya said in spite of the growth in capacity levels of the manufacturing industry, the sector is still constrained by several factors which include low product demand, lack of working capital, high production costs and depressed export volumes.
â€œThe growth is there but there are some limited factors hindering productivity,â€ said Mrs Chikanya.
CBZ Chief Executive Officer, Dr John Mangudya said financial institutions are still committed to assist local firms in order to increase productivity.
â€œWe shall continue to work with industries for their benefit,â€ he said.
Some of the key features in the survey include; increase in production volumes in the past three years, decline in the supply of raw materials, high labour costs and subdued retooling of the manufacturing sector, among others factors.