The annual survey is conducted to provide accurate and timely information on the state of the manufacturing sector in Zimbabwe. It is national in scope and it assesses, determines and documents the structure, performance and challenges facing the local manufacturing sector. The objective of the survey is to give CZI and policy makers a sound basis for developing strategies and action plans for the future growth of manufacturing sector.
Last year’s survey saw the industry’s average capacity utilisation fall by an average 13 percent, from 57.2 percent in 2011 to 44.2 percent in 2012. Given the poor performance of the industry this year, it is likely that capacity utilisation will fall again this year. Already, subsectors like pharmaceuticals have indicated that the subsector’s capacity utilisation has fallen to 35 percent, from 55 percent last year.
Many manufacturing subsectors need to be recapitalised for meaningful revival to take place. The food and beverages subsector requires a minimum resource envelope of $110 million, clothing and textiles $50 million, leather and footwear $15 million, wood and timber $70 million, fertiliser and chemicals $110 million, pharmaceuticals $80 million and metals and electricals $70 million, for recapitalisation and working capital purposes.
So much will need to be done, if the Industrialisation Development Policy is to achieve its overall objective of restoring the manufacturing sector’s contribution to GDP from the current 15 percent to 30 percent and its contribution to exports from 26 percent to 50 percent and to increase capacity utilisation to 80 percent, by 2016.Post published in: Business