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Senior Business Reporter
THE Confederation of Zimbabwe Industries (CZI) has warned that capacity utilisation in the manufacturing sector could slide to 29 percent by the end of the year from 36.3 percent if the prevailing macro-economic climate persists. CZI president and United Refineries Limited chief executive officer, Busisa Moyo, told delegates during on-going Mine Entra expo in Bulawayo yesterday that the country needs to expedite economic reforms to consolidate gains made so far and lure fresh investment.
“In the first half of the year there has been a depressed volume off take of around 15 to 20 percent and if that trend continues, we’re likely to be around 29 percent capacity utilisation in our next manufacturing sector survey report, which will be out in October,” Moyo said.
“However, what we would like to do is to try and stand still. Working together with our line ministry, let’s not allow things to get worse.
“Where we’re now, and we say this a lot as CZI, is that if a company is still open, still producing products, it’s a survivor.”
Moyo said it was critical to have a collective lasting solution to save the existing companies from the devastating challenges facing industries.
He said some of the key solutions to promote industrial growth and development include access to cheaper funding for economic reconstruction, upgrading technologies and industrial plants, as well as promoting innovation through the use of Information Communication Technologies.
Most industries are battling high cost of doing business, high cost of borrowing, liquidity challenges, an influx of cheap imports, labour and transport costs, among others.
Online Reporter