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Friday, July 19, 2024

Zimbabwe’s manufacturing capacity to reach over 60 percent

Story by Stanley James, Business Editor

ZIMBABWE’S manufacturing sectors’ capacity utilisation is expected to reach over 60 percent this year, driven by massive retooling and fresh investments in machinery.

The manufacturing sector has in the past four years been registering steady gains in volumes and production capacity.

The trend has also resulted in an increase in the availability of locally produced goods in the supermarket shelves.

Access to foreign currency through the Reserve Bank of Zimbabwe auction has also aided to the growth trajectory for the country’s manufacturing entities.

Figures contained in the treasury report show that while the sector is projected to register a 1,6 percent growth, capacity utilisation is also being expected to reach over 60 percent.

The report notes that the positive forecast is based on account of exchange rate and price stability, improvements in electricity supply as well as enhanced usage of the local currency.

Most firms have also responded positively to Government’s pro- business policies by further investing in new machinery.

Treasury reveals that is has therefore set aside over ZWL130 billion to support the industrial development policy and the retooling of industries.

The Industrial Development Policy which will be launched during the first half of this year is further expected to provide measures towards consolidating manufacturing sector gains.

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