The manufacturing sector in Zimbabwe is expanding its capacity to “capture and satisfy increased demand” on the back of measures introduced by government to protect it, an official has said.
Source: Manufacturing sector to increase capacity – NewsDay Zimbabwe March 23, 2017
BY MTHANDAZO NYONI
Confederation of Zimbabwe Industries (CZI) president, Busisa Moyo told NewsDay that a raft of measures introduced by government to protect industry had started paying off.
Government last year gazetted Statutory Instrument (SI) 64 of 2016, which removed goods that have local equivalents from the open general import licence.
Following the promulgation of the instrument, Moyo last year told NewsDay that orders for companies on SI had gone up 30% to 50%.
“Orders are still higher than normal when compared year-on-year for example (February 2016 vs February 2017) for companies that are being supported under various SIs 18, 19, 20 and 64,” Moyo said.
“Manufacturers are actually expanding their capacity to capture and satisfy increased demand. Industry players are also looking at issues of quality and packaging in line with new consumer trends and preferences.”
Moyo also said industry capacity was expected to increase to 65% in the near future on the back of an improved agricultural season.
“It is too early to issue projections but given the revisions in GDP forecasts on the back of a better than expected Agricultural harvest we are more optimistic. As you know we would like to see capacity utilisation expanding to above 65% in the near term 9-15 months,” he said.
On the foreign payments issue, Moyo said the Reserve Bank of Zimbabwe and the Bankers Association were making concerted efforts to clear the backlog of payments and this “will improve significantly due to the $70 million nostro stabilisation and the impeding bumper harvest which will see increased tobacco inflows and a falling away of maize importation”.
He said they would continue facilitating and encouraging companies to retool and improve technologies, while maintaining traditional quality and responsible production.
“We have close ties with France, Turkey and India on our retooling agenda through various MOUs, and joint programme through their local consulates.”
“This re-tooling and technology upgrade programme is gaining momentum and we only lack a vibrant financial services sector to complement what we trying to do, hence discussions about an Industrial Development Bank have commenced to address peculiar needs of manufacturers and value chain
financing for industrial expansion,” he said.
COMMENTS