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Monday, May 27, 2024

Manufacturing sector ranks third in value addition index

Story by Stanley James, Business Editor

THE conducive operating environment prevailing in the country has resulted in more investments and expansion of operations by local companies.

A state of the industry report presented to the cabinet this week shows that the manufacturing industry’s total value of added products increased from 15,7% in 2019 to 18,4% in 2021.

The report also notes that capacity utilisation of the local industry has also increased from 47% in 2020 to 66% in 2022.

This speaks volumes of the business operating environment that has seen firms such as Delta Corporation expanding their operations following the launch of Sparkling Beverages plant in Graniteside, a brewery and a lagers manufacturing plant in Southerton, Harare.

The company’s chief executive officer, Mr Max Valela and Confederation of Zimbabwe Industries President, Mr Kumbirai Matsheza say the development is a positive response to government policy interventions.

“This plant at Delta is a true reflection of how the industry can thrive in an environment where the government gives the private sector such an opportunity to lead the economy. It testifies to our thrust to continue growing business units in Zimbabwe taking advantage of a positive or favourable investment climate,” said Mr Valela.

Mr Matsheza added, “The current gains in the manufacturing sector have a positive bearing on the economy to such an extent that if the current climate is sustained then the country is poised for good times as evidenced by the massive investments that are translating into the current growth.”

The Minister of Industry and Commerce, Dr Sekai Nzenza has reaffirmed the government’s commitment to manufacturing sector growth.

“The manufacturing sector plays a pivotal role to such an extent that new investments and equipment by the manufacturing sector have to be sustained in a manner that makes a huge impact in economic development, government is aware of some challenges facing the sector therefore mechanisms are being put in place to facilitate growth and increase viability to ensure further growth and a conducive environment in the long term,” said Dr Nzenza.

The Confederation of Zimbabwe Industries is confident the manufacturing sector will grow by over 70% by the end of this year, riding on favourable fiscal and monetary policies.

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