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Charity Ruzvidzo Business Reporter
THE National Bakers Association of Zimbabwe (NBAZ) says its members are scaling down production due to a lack of long-term funding. NBAZ president Givemore Mesoemvura said bakers had reduced production from one million loaves to 900,000 loaves per day.
“Bakers are also reducing their production due to increased competition. We’re competing with bread supplements like rice, spaghetti and sadza. Production has decreased from one million loaves a day to 900,000 loaves,” he said.
“Competition is also very stiff among us as bakers.We’re trying to penetrate a market which is shrinking, consumers have low buying power due to liquidity challenges in the country and thus they can’t support us adequately”.
Mesoemvura said their association’s main objective in 2015 was to scout for investment to boost the bakery industry.
“Our sector requires $3 million for retooling. We’ve bakeries which are still using old machinery and this is affecting production. This year, our aim is to look for capital funding which is long term. We’ve started engaging banks and other relevant sectors in a bid to secure the funding,” he said.
NBAZ has 250 members.
A manufacturing sector survey report released by the Confederation of Zimbabwe indicates that due to a host of challenges prevailing in the economy, capacity utilisation in local industries last year declined to 36.3 percent from 39.6 percent in 2013.
Meanwhile, Lobel’s Bread, one of the major bakeries in the country recently, said it was operating at 100 percent capacity following a $2 million investment in a new production line that was installed in July last year.
Before commissioning the new equipment in Bulawayo, the company was producing about 80,000 loaves per day from two production lines.
The new line has increased output to about 100,000 loaves.
Online Reporter