Speaking at the official opening of the CZI offices in Mutare last week, the CZI president Joseph Kanyekanye said the economy, which had been growing over the past year, could only progress when setbacks are seriously addressed.
Industries are staggering to stand up, but let me warn that full economic recovery is at risk from electricity cuts and lack of cash. there is a threat of stagnation or even reversal of gains made thus far if some significant growth enablers such as power are not addressed urgently,” Kanyekanye told the gatherers.
Zimbabwe currently generates about 1,100 megawatts — less than one-half of its peak demand of 2,700 MW — from aging electricity plants. State-owned utility ZESA has failed to upgrade the plants due to lack of capital.
“We are coming from a time where there was a lot of hostility, but it is now time to work together. The challenges we are facing as a country are quite a lot. If we look at ZESA, it has quite a lot of competent people, but what we only need is to assist them, he added.
He said while there was an element of stabilisation, following the adoption of multiple currencies, there was a threat of stagnation or even a reversal of the gains realised so far if some significant growth enablers such as ZESA continue to sink..
“Day to day operations of business have largely stabilised and some few businesses are reporting improved capacity utilisation especially those who are dynamic or have foreign investors,” said Kanyekanye.
“The major constraint is the absence of money to fund both recurrent and capital expenditure. The few lines of credit available are expensive to sufficiently address this problem.”
As such, Zimbabwe has to realign policies and posture to deal with a crippling national debt and perceived risk profile in order to attract funding and foreign direct investment.
He added that industry had made submissions requesting additional power for at least 18 hours during weekdays as a way of boosting production. Some industries went for as much as three days without electricity, added the CZI chief.
“We have secured a meeting every month with Prime Minister Tsvangirai and once in every two months we will be meeting President Mugabe. CZI offers a network of communication and a platform to share ideas. Let us utilise such opportunities. It offers access to decision makers, he said.
He challenged businesses in Manicaland to participate fully and benefit from the Marange diamonds.
Post published in: News