adminKudakwashe Pembere Business Reporter
Equities analysts FBC Securities say they are forecasting a growth in the manufacturing sector during the tenure of the new Government provided there is clear economic policy formulation and implementation as the previous inclusive Government was dogged by policy inconsistencies which militated against the revival of the sector.
According to the Zimbabwe Post- Election Synopsis report compiled by FBC Securities, this growth will be experienced if there is an adequate supply side support from all the sectors of the economy.
“The manufacturing sector is poised for growth citing adequate supply side support from the agriculture and other sectors and sustainable demand from local, regional and international markets will see the sector boom,” said FBC Securities.
The report said that since the sector has good infrastructure, necessary capital support will achieve production efficiencies while excess capacity to absorb expansion efforts exist.
Industrial expert Mr Joseph Sagwati concurred with the report saying that there were various ways to revamp this sector.
“There is need to create an Asiatic or Eurobond which will be floated to friendly countries like China, Brazil, South Africa and Russia. These countries are willing to invest in Zimbabwe,” he said.
Mr Sagwati also said the local banking sector can only act as a secondary financier because they do not have the sufficient latency and deposit conundrum to support large volume loans for the resuscitation of the manufacturing industry.
The Confederation of Zimbabwe Industries is, on the other hand, saying that little is expected on the manufacturing sector growth.
In April this year, former CZI president Mr Kumbirai Katsande said that little was expected in terms of growth unless critical challenges facing the economy especially the liquidity crunch were addressed.
“Performance varies from company to company, but generally most manufacturing firms recorded flat performance in the first quarter,” he said.
Online Reporter