adminNgoni Dapira Business Correspondent
MANICALAND manufacturing sector is operating at an all-time low, averaging 36 percent of capacity utilisation, a Confederation of Zimbabwe Industries provincial survey report has revealed.
In an interview with Post Business, CZI Manicaland chairman Mr Franky Kufa said the survey also indicated that Manicaland’s industry was mainly agro-based.
“Industries in Manicaland are operating at a capacity utilisation, which is ranging from 5 percent for the lowest to 52 percent for the maximum performing company,” said Mr Kufa.
He said since the introduction of the multi-currency system in 2009, some big companies completely shut down their operations. These are Mutare Board and Paper Mills, Karina Textiles, Pine Products, Arda Katiyo Tea Estates, Devstar Clothing, Industrial & Domestic Wear, Dairibord Mutare Factory, Kenge Breweries and PG Glass,’’ he said.
The CZI chairman added that companies that were operating on an intermittent on-and-off basis included Quest Motor Corporation, Afri- Safety Glass, Mutare Garments, Kenrose Filters and Buffalo Soap Industries.
The manufacturing sector survey was completed last week. The survey is part of the countrywide reports from each province on the state of Zimbabwe’s manufacturing sector that is expected to guide Government as it implements the economic turnaround blueprint, the Zimbabwe Agenda for Sustainable Socio-Economic Transformation (Zim-Asset).
The Manicaland CZI chapter presented their report titled: ‘Challenges facing Manicaland industry’ which was conducted in collaboration with Africa University and the Ministry of Industry and Commerce.
Mr Kufa said the report also appealed to Government to delist idle land owned by agro-based industries if it did not intend to use it for resettlement purposes.
“During the land reform programme a number of forestry and tea plantations were gazetted for resettlement, but were not allocated to anyone.
“As the situation stands, the land in question appears on the companies’ balance sheets, but cannot be used as collateral for borrowing because the status is uncertain. We are appealing to Government to delist land owned by agro-based industries if it does not intend to use it for resettlement purposes.
“This will benefit all companies with land under tea, timber or sugarcane as it will become possible to use the land as collateral security,” said Mr Kufa.
The Manicaland survey also looks into several other issues triggering the high cost of doing business that include among others, high unit cost of electricity, corruption, high utility charges by local authorities and statutory bodies and bad road infrastructure.
It also calls for labour reforms citing that the current Labour Act was anti-industry especially on issues pertaining to retrenchment cost and process, wage setting and contract employees.
CZI national president, Mr Charles Msipa, said the findings from the survey would pave way for the implementation of rescue packages.
Online Reporter