BULAWAYO - Companies are likely to fail to meet the projected 60 per cent capacity utilisation by the end of December this year, according to Imdustry and Commerce Minister, Welshman NcubeThe government had earlier in the year set a target of 60 per cent industrial capacity utilisation by year-end when it unveiled the Short Term Emergency Recovery Programme (STERP). Ncube said industry continued to face challenges.
“The anticipated 60 per cent capacity utilisation target by 31 December is going to be a mammoth task to achieve,” he said. According to him, capacity utilisation was averaging between 30 per cent and 40 per cent.
Ncube said investors had not responded in a manner that the government had anticipated when it launched STERP, therefore liquidity constraints had continued to hamper any expansion efforts.
“Lines of credit have been slow in coming. There is also a question of some of the infrastructure and equipment that has become obsolete and needs complete replacement,” said Ncube.
Under STERP, manufacturing was deemed the epicentre of the stabilisation of the economy.
Post published in: Economy