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Capacity utilisation in Zimbabwe’s manufacturing sector fell by 2.9%, to 53.2% in 2023 from 56.1% in 2022.
According to a report by the Confederation of Zimbabwe Industries (CZI), this development is attributable to forex shortages, crippling power crisis, exchange rate volatility and currency crisis, among other factors.
Presenting the 2023 CZI Manufacturing Sector Survey on Friday in the capital Harare, CZI chief economist, Cornelius Dube, said (via <a href="https://businesstimes.co.zw/industry-capacity-utilisation-falls-to-53-2/">Business Times</a>):
<blockquote>
Capacity utilisation, which measures roughly how productive a factory is, is down to 53.2% in 2023 from 56.1% in 2022 and 56.3% in 2021.
</blockquote>
Dube further revealed that the manufacturing sector’s contribution to GDP fell to 9% in 2023 from 14.8% in 2018. He said:
<blockquote>
In 2018, the manufacturing sector’s contribution to GDP was 14.8%. It has since fallen to just 9% in 2023.
This is about half of what manufacturing was contributing to GDP in the 1980s and 1990s. Between 1980 and 1989, manufacturing contributed 23% to GDP on average.
</blockquote>
Zimbabwe’s manufacturing industry includes sectors such as food processing, textiles, and metal production among others.
According to the CZI survey, 47% of manufacturers thought that the economy would improve between 2023 and 2024, while 30% thought that it would deteriorate.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Pindula News

Industry Capacity Utilisation Falls To 53.2% - CZI

Capacity utilisation in Zimbabwe’s fertilisers industry has fallen drastically, with local companies only able to satisfy about 15% of the national demand.
This came out in a new report by University of Zimbabwe economics lecturer, Albert Makochekanwa which was commissioned by the Ministry of Industry and Commerce.
According to the report, the low capacity is attributable to power cuts, limited working capital, limited foreign currency to import critical raw materials and high interest rates which discourage the companies from borrowing, among other problems.
The other major problems facing the fertiliser industry include the non-availability of key raw materials in bulk quantities in the local market, smaller profit margins and the non-availability of fertiliser endowments. Part of the report reads:
<blockquote>
On average, actual annual production is about 90,000mt which only satisfies 15% of annual national demand.
Evidence shows that idle capacity is mainly due to the non-allocation of foreign currency to import ammonia gas which is one of the major ingredients in the production of fertiliser.
The average fertiliser manufacturing or production capacity utilisation for the year 2022 in the fertiliser sector was 52%, while the figure ranged between 80% on the upper bound and 38% on the lower bound.
</blockquote>
According to the report, the fertiliser companies produced about 90 000 metric tonnes in 2022 against a national demand of about 780 000mt.
Out of the 780 000mt that are required to meet national demand, 380 000mt are top dressing, and 400 000mt are basal fertilisers (compounds and blends).
The consumption of 380 000mt of top-dressing is further divided into top-dressing direct application (that is ammonium nitrate (AN)) and input into compounds (urea).
The consumption of 400 000mt of compounds is further divided into phosphate, potassium and AN.
The low capacity utilisation has resulted in Zimbabwe becoming a perennial importer of fertiliser.
More: <a href="https://zero.pindula.co.zw/">Pindula News</a>

Local Fertiliser Industry Producing 15% Of National Demand

Industry and Commerce Deputy Minister, Raj Modi, has said efforts to revive industries in Bulawayo started to bear fruit in 2021 as evidenced by improved capacity utilisation for several companies.
Modi said that going forward, more attention will be given to the resuscitation of some of the companies that have closed operations.
Bulawayo is home to companies such as diversified Treger Group of Companies, Archer Clothing and United Refineries Limited, Sheppco BMA Fasteners, Metal Founders, Datlabs, Kango Products, Zambezi Tanners, General Beltings and Arenel, among others.
Modi, who is the Member of Parliament for Bulawayo South (ZANU PF) predicted big things for local industries. He said:
<blockquote>
Definitely, we are very positive about the gains achieved so far. 2021 ended on a positive note and we are going forward to achieve more.
You can also see that companies like National Blankets, which was closed some years back, is now on their feet and we are helping it to retool.
We expect this company to come out stronger and the Government is prepared to support it. 
We are looking at such industries according to sectoral value chains and we expect many factories to re-open.
We are working to resuscitate more and big things will happen in Bulawayo.
</blockquote>
Modi also said the Government is working on bringing the Cold Storage Company (CSC) back on its feet so that it can play a major role in the beef and leather value chain strategy. He said:
<blockquote>
The rehabilitation of the CSC factory has already started and recently they conducted a test run.
We hope by January they will start recruiting back workers and this will create more job opportunities.
We are keen on the value chain focus for this company. We are saying to business leaders let’s work together with the Government and there is nothing impossible.
We will certainly revive and transform Bulawayo industries.
</blockquote>
<h4>More: <a href="https://www.herald.co.zw/reboot-of-byo-industries-to-persist-in-2022-modi/">The Herald</a></h4>

Govt Working To Resuscitate Industries In Bulawayo - Modi

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