Ncube bemoans technology gap

international markets, even if the country is to produce surplus for export, Industry and Commerce Minister Welshman Ncube has said.
Minister Ncube said lack of capital to recapitalise and invest in latest technology were resulting in high production costs and this was making prices for locally produced products higher ahead of average regional prices.

“Most of the companies are using outdated equipment,” said Minister Ncube.
“The technology is not consistent with modern technology and this is affecting competitiveness of locally produced goods.”
Zimbabwe continues importing most basic and non-basic commodities from neighbouring South Africa and Botswana. The country is also importing fabrics and clothes from Asia, particularly China.

Most manufacturers were affected by harsh economic environment which was characterised by hyperinflation while those involved in production of household goods saw its working capital circle destroyed during the State imposed prices controls which started in June 2007.

By the end of 2008, capacity utilisation had declined to about 10 percent which basically means companies were operating at levels far below their potential.
Capacity has since risen to an average 47 percent.
Minister Ncube noted that industry, like other economic sectors was suffering from investment drought as Zimbabwe, since the 2000 land reform, has been regarded as “unsafe destination for investments”.

“While capital constraints have been affecting speedy recovery of the industry, the situation is then compounded by Zimbabwe’s image problem which historically arose from land reform,” said the minister.
“We are perceived as a country which does not adequately observe property rights and a country which does not respect the rule of law.”

Analysts have said the structure of funding available is short term in nature while the requirements for industry are long term in nature.
The capacity for the country to attract external capital of this nature hinges on the progress and structure of the political environment.