Low demand hits Zim manufacturing sector

Harare - Zimbabwe's capacity utilisation for the manufacturing sector in 2014 has fallen to 36.1% from 39.6% last year.

According to the latest survey released on Wednesday by the Confederation of Zimbabwe Industries (CZI), capacity utilisation for the sector was mainly affected by low local demand.

Presenting the results of the manufacturing sector survey, CZI senior economist Dephine Mazambani said the issue of low demand had overtaken other issues such as competition from imports, ageing equipment and the high cost of doing business.

According to the report, manufacturers also had to grapple with competition from South African and Chinese imports which contribute 70% of total imports.
 
“The survey results showed that 40% of the competition within the manufacturing sector has been coming from South Africa."