Zimbabwean manufacturing sector suffers more woes
By Wilson Watson
HARARE, Zimbabwe- Zimbabwe’s manufacturing sector has gone down by 27 percent in 2007 compared to 18 percent in 2006, a survey has revealed.
The country’s business representative, the Confederation of Zimbabwe Industries said in survey that capacity utilization for the manufacturing sector was pegged at 18,9 percent for the year under review compared to 33,8 percent in 2006.
The survey also showed that the number of companies operating below 50 percent capacity increased from 49 percent to 75 percent while only four percent of companies are now operating above 74 percent down from 9,7 percent last year.
The decline in the sector was attributed to several factors including price controls, foreign currency shortages, electricity and water outages, absence of credit lines, skills shortage, rising costs, reduced demand due to low disposable income and restricted access to Foreign Currency Accounts.
Zimbabwean industries have been struggling to remain afloat as the economic situation continues to deteriorate.
Most companies have closed down over the years while a number of professionals have left for other countries in search of greener pastures.
Chamber of Mines President David Murangari said most sectors of the economy were operating with skeleton staff as mass exodus continues in Zimbabwe.
“It’s a gloom picture which is a reflection of how our economy is performing,” he said in an interview.
A Government Minister Amos Midzi who is in charge of the Mines and Mineral said the country was undergoing severe economic challenges and it was not only the private sector that has been affected.
“Even in my Ministry, we are running with a skeleton staff. We do not have enough manpower to carry out all whet we must do. We need to work out a solution to ensue we revive the economy.
Due to the challenges, Zimbabwe’s economy is one among the worst performers in the world.
However the business sector has expressed optimism that the talks among political players in Zimbabwe will bring the much-needed stability that will help in the revival of the economy.