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Tuesday, May 21, 2024
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Revival of distressed firms spurs economic growth  

Story by Stanley James, Business Editor

Several distressed companies are being resuscitated by the Second Republic as the country targets more production, increased employment opportunities and economic growth.

The past four years have seen industrial growth being on a positive trajectory buoyed by a rise in overall manufacturing capacity utilisation that hit over 55 per cent last year.

With the Second Republic under the leadership of President Emmerson Mnangagwa shifting focus to a private sector-led economy, the revival of distressed firms has resulted in more production and positive yearly Gross Domestic Product (GDP) rates.

The rise in the number of re-opened firms is bearing testimony to the government’s commitment to ease imports, boost output and further increase industrial activities.

A list of firms that have been revived released by the Ministry of Industry and Commerce to the ZBC News this Wednesday shows that fresh capital injection through help from banks and the government has also breathed life into industries across the country.

G and W Minerals, a company that had faced production constraints is now back to growth in the dolomite mining sector.

David Whitehead, a textiles value chain manufacturing firm has been re-launched on the back of investments in new machinery worth over US$20 million, while Quest Motors is also focusing on restoring production to full capacity.

Deven Engineering Assembly Project is now nearing completion, raising hopes for restored production, while Chemplex Corporation is also now on a growth trajectory.

Dorowa Minerals is forging ahead with its revival plan on the back of recapitalisation initiatives by the government and strategic partners.

Cicada Katiyo Estates has invested a total of US$10 million into the production of avocados and macadamia, with more than 300 jobs having been created so far, while Hunyani is now focusing on recovery through mobilising fresh capital.

Masvingo-based Simbi is currently operating at 80 per cent capacity and producing 3 000 metric tonnes of sponge iron as it forges ahead with more production.

Zimchem Refineries has increased production of industrial chemicals, with CFI Holdings which had been placed under judicial management reviving its milling plants, while Zambezi Tanners has also launched separate tannery units to boost production.

The Second Republic development agenda has also seen the Confederation of Zimbabwe Industries projecting that a 70 per cent manufacturing capacity utilisation for the industry this year is achievable.

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