CZI to re­lease man­u­fac­tur­ing sur­vey re­port

Chronicle (Zimbabwe) - - Business - Busi­ness Re­porter

THE Con­fed­er­a­tion of Zimbabwe In­dus­tries (CZI) says it will re­lease its 2016 man­u­fac­tur­ing sec­tor sur­vey re­port next week on Wed­nes­day.

The cru­cial sur­vey find­ings are widely recog­nised as Zimbabwe’s lead­ing anal­y­sis of the state of in­dus­try and the fac­tors af­fect­ing busi­ness oper­a­tions in the coun­try.

CZI chief ex­ec­u­tive of­fi­cer Mr Clif­ford Si­leya told Busi­ness Chron­i­cle yes­ter­day: “The man­u­fac­tur­ing sur­vey’s re­sults will be re­leased on Wed­nes­day, Novem­ber 23, 2016, at the Meik­les Ho­tel in Harare.

“We have in­vited the Min­is­ter of In­dus­try and Com­merce (Mike Bimha) to of­fi­ci­ate at the launch. Re­serve Bank of Zimbabwe Gover­nor Dr John Man­gudya will also be in at­ten­dance to make a pre­sen­ta­tion on the much talked about bond notes.”

The aim of the sur­vey is to pro­vide busi­nesses with a lob­by­ing po­si­tion and ref­er­ence point when meet­ing pol­icy mak­ers and Gov­ern­ment with in­for­ma­tion on ob­sta­cles to eco­nomic growth as well pos­si­ble so­lu­tions in de­sign­ing bet­ter eco­nomic pol­icy.

The man­u­fac­tur­ing sec­tor, among other op­er­a­tional chal­lenges, is grap­pling with lack of work­ing cap­i­tal to in­vest in new ma­chin­ery as well as high cost of bor­row­ing and weak de­mand as­so­ci­ated with the pre­vail­ing liq­uid­ity con­straints.

The re­sults of the sur­vey are be­ing re­leased prior to the 2017 national bud­get pre­sen­ta­tion by the Gov­ern­ment so that Fi­nance and Eco­nomic Devel­op­ment Min­is­ter Pa­trick Chi­na­masa can cap­ture in­dus­try con­cerns into the 2017 fis­cal pol­icy state­ment.

Early this year, CZI iden­ti­fied 18 value chains that need to be pri­ori­tised to re­vive the econ­omy.

The iden­ti­fied value chains among oth­ers in­clude cot­ton-to­cloth­ing, beef-to-leather, juice-to-can or hor­ti­cul­tural farmto-juice value chain and fish-to-fork.

Mr Si­leya is on record as say­ing this year’s sur­vey will take a sec­toral ap­proach “based on the value chains that we have iden­ti­fied”.

He said fo­cus would be on value chains in line with this year’s congress theme, which cen­tred on “Strength­en­ing value chains for sus­tain­able in­dus­tri­al­i­sa­tion and eco­nomic devel­op­ment”.

While ca­pac­ity util­i­sa­tion in the man­u­fac­tur­ing sec­tor stood at 34,3 per­cent in 2015, CZI has hinted that some firms have this year man­aged to im­prove their ca­pac­ity to com­pet­i­tive lev­els.

“De­spite low ca­pac­ity util­i­sa­tion lev­els in the man­u­fac­tur­ing sec­tor, some com­pa­nies are do­ing very well in re­la­tion to stim­u­lat­ing pro­duc­tiv­ity,” said Mr Si­leya.

He said com­pa­nies in sec­tors such as food and bev­er­ages, ed­i­ble oils and the dairy in­dus­try were do­ing bet­ter.

“Im­prove­ment in ca­pac­ity util­i­sa­tion lev­els can be at­trib­uted to im­proved power sup­ply in the past six months as well as co-op­er­a­tion be­tween in­dus­try and the Gov­ern­ment for in­stance on the Statu­tory In­stru­ment 64 of 2016,” said Mr Si­leya.

Mrs Fun­gai Mhute and a col­league use can­dle flame to seal dried kapenta fish pack­ets

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