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Harare - Capacity utilisation for Zimbabwean manufacturers went up from 34.3% in 2015 to 47.4% in 2016, according to a survey released on Wednesday.
The Confederation of Zimbabwe Industries Manufacturing survey showed the increase in capacity was mainly driven by a surge in production by companies whose products were banned from being imported.
Sectors that largely contributed to the increase are foodstuffs: drinks, tobacco and beverages; wood and furniture as well as paper, printing and packaging.
This is the first increase in capacity utilisation since 2011, when the figure peaked at 57.2%. Since then it has been trending downwards.
Zimbabwean manufacturers source most of their equipment from neighbouring South Africa, with at least 37% of survey respondents saying they source the the bulk of their equipment from that country.
China came second, with 22% of respondents saying they look east for the equipment. At least 21% source equipment locally.
South Africa is also the biggest source of competition for Zimbabwean companies, with close to 40% of the respondents saying they face more competition from companies from that country than any other.
China came second, providing competition to 35% of the respondents. India was a distant third, providing competition for about 10% of survey respondents.
In terms of raw materials, the bulk of manufacturers - more than 55% - said they source them from China.
