ZIMBABWE’s INDUSTRY CAPACITY UTILIZATION DROPS BY 6.2 POINTS

Zimbabwe’s local Industry Capacity Utilization plunges downwards

According to the Confederation of Zimbabwe industries (CZI), local industry capacity utilization have drop by 6.2 percentage points. There is a need for protective measures to help overturn this downward coil.

This revelation is according to a recent investigation by the Business Orient Organization.

According to 2018 CZI Manufacturing Sector Survey, capacity utilization in November 2018 experienced a 6.2 percentage point decline to arrive at 42 percent.

From reports, the decline in capacity utilization was mainly as a result of policy inconsistency. This will result to; suspension of the Statutory Instrument (SI 122), shortage of the foreign currency and wavering confidence in the economy. It will also affect direct currency.

CZI also estimates that the capacity utilization in 2019 will further decline to 34.3 percent. Representing a 7.7 percentage point decline from the November 2018 figure. This can only be curbed if the Zimbabwean policy change for the better.

The survey further observed that at 34.3 percent capacity utilization, some companies would close. This will heighten the effects of unemployment and economic break down. Also from the report, because of these challenges Zimbabwean businesses will shift.

CZI reports early this month show that a number of companies did not reopen for business this year. Meanwhile, the few remaining ones are running-out of raw materials due to sensitive shortages of United State Dollars to process production. As a result of this Zimbabwe Economic growth will reduce and hardship will be the story of the day for Zimbabwe citizens.

Please share, follow us on Twitter and don’t forget to like us on Facebook