According to Ncube, the countrys industry had greatly improved. He said most of the countrys companies had done a lot to remain afloat. On average the industry has reached 35 per cent capacity utilisation. The individual performance by the companies varies with others recording as high as 100 per cent while others are at five per cent with others still struggling to re-open, he said. The Hwange thermal power station, which used to operate with only one unit, was now operating with four units, a development that the minister said was a remarkable improvement.
Ncube said brain drain was now the sole major obstacle hampering the total recovery of the economy. If you look at Zisco, which is under my ministry, even if it was allocated all the money that it needs it will still remain under utilised as most of its experienced workers have left the country, he said. Brain drain, according to Ncube, was a lethal cancer in Zimbabwes economy and difficult to deal with in the short term but easier to deal with in the long term and hence the introduction of a new programme to compliment the Short Term Emergency Recovery Programme (STERP). Minister Ncube said government was in the process of formulating an industrial policy whose objective would be to ensure that local companies become competitive through the acquisition of the latest machinery and technology.
This policy will provide the impetus for industries to acquire new equipment and technology following years of under investment. This would enable companies to increase their capacity utilisation even further, he said.
Ncube said most of the companies were using out of date machinery and technology and as a result would not be able to compete on the global scale. He said incentives would be put in place to encourage companies to improve their operational equipment. STERP, which was introduced early this year, played a pivotal role in the reduction of the inflation, money supply, pricing and the taxation system used into the country.
30.9.2009
8:45
Business improving – Ncube
BULAWAYO - Capacity utilisation in most companies has reached 35 per cent from 10 per cent at the beginning of the year, the Industry and Commerce Minister, Welshman Ncube (Pictured), said.