adminlowest since dollarisation.
“For the manufacturing and productive sectors, the operating environment remained challenging characterised by low liquidity, lack of affordable long-term credit, the use of antiquated machinery and equipment, inadequate power supplies, deteriorating infrastructure, stiff competition from imports, even though some of the imports were of very low quality and negative country perceptions among others.
“Due to these challenges, capacity utilisation in the manufacturing sector declined from 57 percent in 2011 to 44 percent in 2012.”
This has stunted the country’s export growth during the period under review.
Since the adoption of the multi-currency system in 2009, Zimbabwe’s economy has been on a growth trajectory underpinned by the mining and agricultural sectors. During 2010 and 2011, the economy grew by 8,1 percent and 9,3 percent respectively.
Meanwhile, ZimTrade’s financial position continues to significantly improve with income for last year increasing by 101 percent to US$1 457 154 from 2011.
The private sector, through the Trade Development Surcharge, continues to play a significant role in the trade body’s income contributing 88 percent in 2012.
Trade Development Surcharge doubled from
US$624 851 in 2011 to US$1 285 888. The Government grant to the trade promotion body increased from US$44 740 in 2011 to US$51 000 in 2012. Total comprehensive income also went up from US$67 790 in 2011 to US$453 557 in 2012.
Expenditure for 2012 was tightly monitored and stood at US$1 003 598 resulting in a surplus of
US$453 557 for the year.
ZimTrade chairman Mr Jethro Siziba said the trade body was restructuring operations to improve its efficiencies.
“The major focus for ZimTrade is the facilitation of export opportunities in order to address the unsustainable trade deficit that the country has continued to experience. As part of its turnaround strategy ZimTrade is undergoing a major restructuring exercise in order to enhance efficiency in the delivery of relevant and high quality needs-based exporter services,” he said.
ZimTrade reported that the first half of 2012 was characterised by serious financial challenges, which impacted negatively on the delivery of its mandate compelling the trade body to take counteractive measures. Measures such as period follow-ups with banks to ensure adherence to the Trade Development Surcharge Act were undertaken on surcharge collections and these resulted in the improvement of the organisation’s finances in the latter part of 2012.
Online Reporter