adminLovemore Zigara Midlands Correspondent
THE Confederation of Zimbabwe Industries (CZI) has set a target of increasing capacity utilisation levels from 34,6 percent to 65 percent by end of 2017.
Local industry capacity utilisation has been declining over the years despite stabilisation of the economy since adoption of the multiple currency system in 2009.
A plethora of challenges among them weak domestic demand, high unemployment, influx of cheap imports, widening trade deficit, weakening of the rand against the United States dollar and inadequate utilities supply, have collectively hampered growth.
CZI president, Busisa Moyo told captains of industry in Gweru on Thursday that the industrial lobby group was working with the government to revive the industry.
“In 2011 our capacity utilisation level was somewhere around 57 percent so we’ve come right down to where we’re now, which is very disconcerting. What we’ve done is to say let’s, as CZI, start to target a capacity utilisation level for the next 24 months and to work with the government towards the target,” he said.
“Targets are good because they force people to analyse the impact of what they’re doing and it’s captured in a number. So we’ve put a target to say in 24 months we would like to see capacity utilisation going up to 65 percent, which is a very ambitious sort of target.”
Moyo said while the objective looks ambitious, the target could be met if all the industry players in the economy can work on the ‘12 Cs’ principle.
The 12 Cs, which are key to the turnaround of the country’s economy are focal areas bordering around: confidence, courage, conversations, convergence, consistency and consumptions.
Costs, competitiveness, currency, copying, corruption and common sense complete the circle.
Moyo expressed confidence that ongoing engagements by the government with the Bretton Woods institutions would yield positive results, which may lay a launch pad for industrial recovery.
Online Reporter