HARARE - Capacity utilisation for industries in the country has stagnated at 47 per cent as it is being stifled by the financial sector, Industry and Commerce Minister, Professor Welshman NcubeNcube said the figure for capacity utilisation was hovering between 45 and 47 per cent.
According to the figures that we have currently, capacity utilisation for industries is fluctuating between 45 and 47 percent. This has been caused by the last years annual shutdowns.
But the biggest challenge we are still facing is the issue of lines credit, which has greatly affected the performance. Most industries are under-funded and it is really underplaying our efforts of stimulating industrial growth, said Ncube.
Another problem is that the financial sector is not forth coming in the recapitalisation of companies as it claims that there is no agreement between its players and the Ministry of Finance to facilitate the exercise.
Companies are failing to get recapitalisation funds from banks because the banks are claiming that there is no agreement between them and the Ministry of Finance, that is where the problem is, he said.
Ncube said that the absence of credit lines had resulted in the annual shut down of companies, which is a resultant factor to the stagnant figures. The government would, however, continue to scout for funding partners that can chip in with funds and support local industries and to engage the Ministry if Finance to make headway.
The only solution to this problem is to secure funding from both local and regional financial assistance, we will continually sit down with the Ministry of Finance to try and sort out this issue to make headway for the recapitalisation process and improve of capacity utilisation, he said.
Post published in: Economy