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Senior Business Reporter
GOVERNMENT will continue rendering its support to the productive sector in order to build a resilient and sustainable manufacturing sector, a Cabinet Minister has said.
Industry and Commerce Minister Dr Sekai Nzenza told captains of industry on Thursday during the official launch of the Confederation of Zimbabwe Industries (CZI) 2022 Annual Manufacturing Sector Survey results that the Government acknowledges the progress made in the manufacturing sector ranging from increased capacity utilisation, increased exports and increased investments.
The annual survey provides a detailed insight into the performance of the manufacturing industry.
Through the industrialisation agenda, the Second Republic led by President Mnangagwa believes industry should play a leading role in the country’s quest to have an empowered upper middle-income society by 2030.
The survey results show that large-scale firms recorded the highest capacity at 63 percent, a rise from 62,7 percent in 2021.
“We indeed welcome the survey results which are showing that large-scale firms recorded the highest capacity at 63 percent, a rise from 62,7 percent in 2021. The medium-scale firms realised a capacity utilisation level of 61 percent while the small-scale firms had a lower level of capacity utilisation at 53 percent,” said Dr Nzenza.
She said the launch was also an opportunity to take stock of the aspirations of both Government and the private sector and to introspect on policies, strategies and identify what is working well and what is not working.
“The National Development Strategy 1 is a representation of our collective aspirations as we work together to build a resilient and sustainable manufacturing sector. As Government, we avail ourselves to paying close attention to challenges which are being faced by the productive sector which have been presented today in order to safeguard the progress which has been registered so far” said Minister Nzenza.
She said President Mnangagwa has directed the Government to champion a successful business operating environment anchored on a private sector led economic growth.
The findings of the survey were corroborated or triangulated with views from some of the key sectors such as retail, packaging and plastic pipe manufacturing.
The survey was not limited to CZI members and captures performance across all economic sectors and the results were based on performance of both CZI and non-CZI members.
It covered all firm sizes with about 65 percent being small entities, 16 percent medium and 15 percent large.
The survey also reveals that most of the firms indicated that they have been operating for between six and 10 years. This undoubtedly indicates business confidence by firms under the prevailing stable macroeconomic environment. The robust fiscal and monetary policies have managed to curb runaway inflation and exchange rate disparities.
According to the survey results, about 40 percent of firms invested last year, an increase from 38 percent in the prior year.
The investment resulted in firms expanding their capacity by 30 percent. However, the invested amount was US$101 million, a decrease from US$147 million in 2021.
Online Reporter