RBZ, bankers meet manufacturing executives
THE Reserve Bank of Zimbabwe (RBZ), bankers and Industry, Commerce and Enterprise Development Minister Dr Mike Bimha will meet manufacturing industry executives in Bulawayo tomorrow for a highlevel dialogue on how to support increased domestic productivity.
Local industry capacity utilisation is largely hamstrung by use of old equipment, which increases costs of production. Hopes are high that tomorrow’s interface between industry executives, Government, bankers and the original equipment manufacturers, will provide the lasting solution to stimulate manufacturing industry, whose contribution to gross domestic product has remained subdued over the years.
The Confederation of Zimbabwe Industries (CZI) is organising the event in conjunction with the Zimbabwe International Trade Fair (ZITF) Company under the theme “Building export capacity through retooling”. The one day conference is a key event for this year’s trade showcase which began yesterday.
CZI Matabeleland Chapter president, Mr Joseph Gunda, said tomorrow’s forum presents a huge opportunity for local firms to scout for partners who can contribute towards retooling at a low cost. He said industry retooling will help drive exports, improve quality and increase product competitiveness.
“It’s a very significant meeting for us especially coming at a time when we are talking about competitiveness of our manufacturing sector as we are using old machinery. It’s a forum for us to scout for equipment as you are aware that retooling will certainly help us to build our export capacity,” said Mr Gunda
“Once we have the right equipment and modern technology we can improve our efficiencies and our productivity can go up as well and above all we can improve on quality of our products.
“We will also be able to compete on the regional and international market.”
Captains of industry have repeatedly said that antiquated equipment was affecting the quality of products and efficiency, calling for urgent intervention from Government and financers to drive the retooling process.
According to figures previously presented by the CZI, 50 percent of the few remaining companies in Bulawayo, once the country’s industrial hub, have equipment that is more than 20 years old and 70 percent of the companies in the Midlands province also suffer the same predicament.
The local industry needs capital to retool as most of the equipment has outlived its lifespan. This has seen the manufacturing sector operating with constant breakdowns, a situation that has rendered the industries uncompetitive.
The country’s industry needs about half a billion dollars for retooling and technology upgrades. Government has since pledged its commitment towards providing long-term funding for retooling to local companies ahead of the envisaged massive investment under the new economic order. — @PrinceNkosy102.