Loading...
See More

SA imports hit Zim manufacturers

Nov 08 2012 15:45 Malcom Sharara, Fin24’s correspondent in Zimbabwe

Related Articles

Zim manufacturers say sector in crisis

Zim diamond firms now 'global models'

Amplats to transfer Zim mine to locals

Zim slashes growth forecast to 4.3%

IMF eases restrictions on Zim

Zimbabweans ignore high lending rates

 

Harare - Competition from South African manufactured products has hit Zimbabwean manufacturers hard, a survey by the Confederation of Zimbabwe Industries (CZI) has shown.

The survey showed that South Africa tops the list of competing imported products, with 85% of respondents indicating that they compete with South African products while 66% of the competing products are from China.

“Manufacturing industries continue to face viability challenges with cheap imports mainly from South Africa and China finding their way into the country through porous borders,” the survey showed.

From the respondents there was a distinct call for outright protection of industry, while others felt the need for CZI to promote an “incubation strategy”.

When it comes to exports, the survey showed that South Africa is the fourth destination for Zimbabwean manufactured products.

“Zambia remains the top export destination for manufactured products, receiving 30% of the manufacturing share of exports.

"Next is Mozambique and South Africa has dropped to fourth position with a 12% market share,” the survey showed.

The country’s manufacturing export sales have however remained unchanged at 15% of total turnover.

Zimbabwean companies that had not exported in the past two years said local products cannot compete in other markets, both in terms of price and quality.

The survey showed that capacity utilisation in the Zimbabwean manufacturing sector has declined from 57.2% to 44.2%, with the worst-performing manufacturing subsector - leather and allied products - operating as low as 27.5%.

Availability and funding cost, infrastructure, in particular power shortages and cost, economic policy instability, high labour cost and rigid labour laws were identified as having the greatest negative impact on capacity utilisation and doing business in Zimbabwe in 2012.

 - Fin24

       
       
  
 

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

zimbabwe  |  manufacturing  |  exports
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
3 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

Retailers of any shape and size can now unlock the power of mobile transacting.
 
 

BMW drift battle: M235i vs. speedway bike

Watch this insane drift contest with four-times dirt-track World champion Karl Maier riding a speedway bike against a BMW M235i.

 
 

Men24.com

Want to start talking dirty?
Everyday struggles of naturally skinny guys
And this year's Miss Bumbum title goes to...
How to maintain your mo, bro

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...