adminutilisation dropped to 40 percent in the first quarter from 47 percent in December last year.
CZI president Mr Kumbirai Katsande told New Ziana that little was expected in terms of growth unless critical challenges facing the economy, chief among them liquidity problems, were addressed.
“Performance varies from company to company, but generally most manufacturing firms recorded flat performance in the first quarter,” he said.
Mr Katsande said companies should devise new strategies that addressed production costs.
“Most companies are still affected by debts, thus to survive they should embark on cost- cutting measures,” he said.
Other challenges to the country’s manufacturing industry include power shortages and lack of competitiveness of Zimbabwean products on the external markets.
According to the CZI, Zimbabwe’s manufacturing sector requires at least US$2 billion to operate at full capacity.
Economist Christopher Mugaga said companies should change strategy, and maximise on available resources.
He noted banks were also wary of lending, careful not to expose themselves too much through non-performing loans. “Chances of a turnaround in 2013 are very slim; we are not going to witness any changes in production capacity,” Mugaga said.- New Ziana.
Online Reporter