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Oliver Kazunga, Senior Business Reporter
COMPANIES should invest in retooling despite the economic difficulties as this is critical in achieving long-term production benefits for the broader well-being of the economy, Datlabs chief executive officer, Todd Moyo, said yesterday.

Speaking at the Confederation of Zimbabwe Industries (CZI) breakfast meeting in Bulawayo, Moyo said the major challenge affecting mechanisation of companies was the shortage of working capital.

“It’s not an option for companies not to mechanise, so it’s something that we can debate on…Even in the most difficult times we need to retool,” he told delegates who are also participating at the Zimbabwe International Trade Fair (ZITF).

“You’ve in the past seen that companies invest in mechanisation during difficult times are doing very well.”

In recent years, companies have lost their competitive edge against foreign entities due to lack of investment in new machinery.

“We need to continue investing in machinery so that we also build confidence in the economy.                                                                    The plants we’ve for flour for example, are the best….,” said Moyo.

He said antiquated machinery and lack of assets to finance the acquisition of new machinery has been identified as one of the factors hindering efficiency of local companies.

Moyo said in this light it was imperative to have a performing economy so that the investment that business have is supported.

Of late, economic performance has been affected by a number of factors that include erratic power supplies, liquidity constraints, high cost structures and stiff competition from imported products.

“The liquidity problem has to be  addressed so that the market takes us seriously,” he said.

According to the Confederation of Zimbabwe Industries (CZI), due to the challenges facing the economy, capacity utilisation in the manufacturing sector has dropped to about 34,3 percent.

As a result of low industrial capacity utilisation, a number of workers have lost their jobs.

The government is in the process of coming up with strategies aimed at improving the economic climate to promote the growth and development of industries.